StandardAero (NYSE:SARO) Posts Earnings Results

Key Points

• StandardAero beat quarterly expectations, reporting adjusted EPS of $0.33 versus $0.30 expected and revenue of $1.63 billion versus $1.49 billion forecast. Revenue climbed 13.3% year over year, and EPS improved from $0.19 a year ago.
• The company raised FY 2026 guidance to $6.325 billion–$6.45 billion in revenue and $1.40–$1.50 in adjusted EPS, while reiterating free cash flow of $270 million–$300 million. Management pointed to broad demand strength, including growth in LEAP work and military MRO opportunities.
• Despite the strong results, margin growth lagged due to temporary factors such as ramp-up costs, inventory burn, and mix effects, and the stock fell 3.2% on the day. StandardAero also continued capital deployment with $60 million in share repurchases and the acquisition of Unified Turbines to expand repair capabilities.

StandardAero (NYSE:SARO - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.03, FiscalAI reports. The company had revenue of $1.63 billion during the quarter, compared to analysts' expectations of $1.49 billion. StandardAero had a net margin of 4.71% and a return on equity of 12.48%. The business's quarterly revenue was up 13.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.19 EPS. StandardAero updated its FY 2026 guidance to 1.400-1.500 EPS.

Here are the key takeaways from StandardAero's conference call:

• Raised full‑year guidance — revenue now $6.325B–$6.45B, adjusted EBITDA $875M–$905M, adjusted EPS $1.40–$1.50, and free cash flow reiterated at $270M–$300M.
• Broad, durable demand with organic revenue up 13.3% in Q1; LEAP revenue grew ~4x, CF34 capacity is expanding in Winnipeg, and newly awarded military MRO rights on AE1107/AE2100 underpin multi‑year military growth.
• Q1 margin performance was held back despite higher revenue — adjusted EBITDA rose only 2.5% due to LEAP/CFM56 DFW ramp learning curves, accelerated burn of low‑margin pass‑through inventory, timing/mix of engine shipments, and a one‑time military program closeout (management calls these mostly transitory).
• Capital deployment remains active and disciplined — $60M of share repurchases in Q1, leverage at 2.6x (within 2–3x target), and acquisition of Unified Turbines to expand component repair capabilities (expected mid‑single‑digit EBITDA contribution post‑synergies).

StandardAero Stock Down 3.2%

Shares of NYSE SARO traded down $0.84 during midday trading on Friday, reaching $25.20. 8,306,392 shares of the company's stock were exchanged, compared to its average volume of 4,036,185. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.57 and a current ratio of 2.20. StandardAero has a 52-week low of $23.83 and a 52-week high of $34.48. The business's fifty day moving average price is $26.85 and its two-hundred day moving average price is $28.19. The stock has a market capitalization of $8.38 billion, a PE ratio of 28.63 and a beta of 0.81.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on SARO. Wells Fargo & Company began coverage on shares of StandardAero in a research report on Wednesday, April 1st. They set an "overweight" rating and a $32.00 target price for the company. Royal Bank Of Canada reduced their price target on shares of StandardAero from $37.00 to $34.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st. BTIG Research assumed coverage on shares of StandardAero in a research note on Thursday, April 2nd. They set a "buy" rating and a $35.00 price objective for the company. Truist Financial raised shares of StandardAero to a "strong-buy" rating in a research report on Friday, May 1st. Finally, Susquehanna set a $38.00 target price on shares of StandardAero in a research note on Thursday, January 15th. Three analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, StandardAero currently has a consensus rating of "Moderate Buy" and an average target price of $34.90.

Insider Activity at StandardAero

In other news, insider Lewis Prebble sold 1,141 shares of the stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $27.36, for a total transaction of $31,217.76. Following the transaction, the insider owned 3,006 shares of the company's stock, valued at approximately $82,244.16. This trade represents a 27.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Anthony Brancato sold 1,107 shares of the stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $27.36, for a total value of $30,287.52. Following the transaction, the insider directly owned 2,991 shares in the company, valued at approximately $81,833.76. This represents a 27.01% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 59,337 shares of company stock worth $1,732,660. 1.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Comerica Bank acquired a new stake in shares of StandardAero during the 1st quarter worth approximately $26,000. Danske Bank A S bought a new position in StandardAero during the 3rd quarter worth $82,000. Parallel Advisors LLC grew its stake in StandardAero by 210.3% during the 4th quarter. Parallel Advisors LLC now owns 3,050 shares of the company's stock worth $87,000 after buying an additional 2,067 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in StandardAero in the fourth quarter worth $105,000. Finally, Tower Research Capital LLC TRC increased its position in StandardAero by 836.4% in the second quarter. Tower Research Capital LLC TRC now owns 4,345 shares of the company's stock worth $138,000 after buying an additional 3,881 shares during the period.

Key Headlines Impacting StandardAero

Here are the key news stories impacting StandardAero this week:

• Positive Sentiment: StandardAero reported stronger-than-expected Q1 results, with adjusted EPS of $0.33 topping estimates and revenue of $1.63 billion beating forecasts. Revenue rose 13.3% year over year, suggesting continued demand across its aerospace services business.
• Positive Sentiment: The company raised FY 2026 guidance, calling for EPS of $1.40 to $1.50 versus the prior consensus near $1.24, signaling management confidence in full-year profitability and execution.
• Positive Sentiment: StandardAero also announced the acquisition of Unified Turbines, LLC, a move aimed at expanding its component repair services and broadening its maintenance capabilities, which could support longer-term growth.
• Neutral Sentiment: Investors are also parsing the earnings call transcript and presentation for more detail on margins, integration plans, and demand trends, but these items are mostly informational so far.
• Negative Sentiment: Despite the strong report, the stock is under pressure, likely reflecting profit-taking after the earnings and guidance beat, as well as broader caution about valuation and execution following the recent rally.

About StandardAero

StandardAero is a global aerospace maintenance, repair and overhaul (MRO) provider specializing in gas turbine engines, auxiliary power units (APUs), airframe components and oil & gas rotating equipment. The company offers a full suite of technical services including engine repair and overhaul, component repair, accessory maintenance, parts manufacturing and on-site field support. Its customer base spans commercial airlines, business and general aviation operators, regional carriers, original equipment manufacturers (OEMs) and defense organizations.

With roots dating back to 1911, StandardAero has grown through strategic acquisitions and organic expansion to become one of the largest independent MRO providers in the industry.

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