StandardAero (NYSE:SARO) Posts Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• StandardAero beat quarterly expectations: EPS was $0.40 versus the $0.32 consensus, while revenue rose 4.6% year over year to $1.60 billion. Adjusted EBITDA increased 12.3% to $230 million, with a record 14.4% margin.
• Management raised fiscal 2026 guidance: Adjusted EPS is now expected at $1.50–$1.57, revenue at $6.375–$6.5 billion, and adjusted EBITDA at $885–$910 million; free-cash-flow guidance was maintained at $270–$300 million.
• Growth initiatives are progressing, but some pressure remains: Dallas-Fort Worth programs reached profitability and the company completed its Unified Turbines acquisition, while Component Repair Services margins declined because of work migration and ramp inefficiencies. Management expects those pressures to ease in the second half.

StandardAero (NYSE:SARO - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.40 EPS for the quarter, beating analysts' consensus estimates of $0.32 by $0.08, FiscalAI reports. StandardAero had a net margin of 4.71% and a return on equity of 12.36%. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. During the same quarter in the prior year, the business earned $0.20 earnings per share. The firm's revenue for the quarter was up 4.6% on a year-over-year basis. StandardAero updated its FY 2026 guidance to 1.500-1.570 EPS.

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

• Strong second-quarter results: Revenue increased 4.6% year over year to $1.6 billion, while adjusted EBITDA rose 12.3% to $230 million and adjusted EBITDA margin reached a record 14.4%. Free cash flow was positive at $50 million, and adjusted EPS increased 24% to $0.40.
• 2026 guidance was raised: Management increased revenue guidance to $6.375 billion-$6.5 billion, adjusted EBITDA guidance to $885 million-$910 million, and adjusted EPS guidance to $1.50-$1.57. The company maintained its adjusted free cash flow outlook of $270 million-$300 million.
• Growth investments are gaining traction: The LEAP and CFM56 Dallas-Fort Worth programs reached profitability in the quarter, while a $180 million license expansion is expected to generate approximately $25 million of annual adjusted EBITDA at full run rate. StandardAero also completed its Unified Turbines acquisition and repurchased $40 million of shares during the quarter.
• Component Repair Services faced near-term margin pressure: CRS adjusted EBITDA margin fell to 26.3% from 29.0% due to work migration, employee ramp inefficiencies, and unfavorable military-platform timing. Management expects the pressure to ease in the second half and reiterated its full-year CRS outlook.
• Demand remains resilient despite supply-chain and fuel-price risks: Management reported no meaningful deterioration in supply-chain conditions or commercial demand from elevated jet fuel prices, but military revenue declined 3% in the quarter because of platform delays. The company expects military and helicopter growth to accelerate in the second half of 2026.

StandardAero Price Performance

Shares of StandardAero stock traded down $0.86 during midday trading on Thursday, hitting $30.15. 4,570,482 shares of the company were exchanged, compared to its average volume of 3,123,144. The firm has a 50 day simple moving average of $27.91 and a 200-day simple moving average of $28.02. The company has a debt-to-equity ratio of 0.81, a current ratio of 2.12 and a quick ratio of 1.59. The firm has a market cap of $10.02 billion, a P/E ratio of 34.27 and a beta of 0.92. StandardAero has a 52 week low of $23.83 and a 52 week high of $34.48.

Key StandardAero News

Here are the key news stories impacting StandardAero this week:

• Positive Sentiment: Quarterly earnings beat expectations. StandardAero reported second-quarter EPS of $0.40, above estimates ranging from $0.32 to $0.35 and double the $0.20 reported a year earlier. Revenue increased 4.6% year over year to $1.60 billion, slightly exceeding the $1.59 billion consensus. StandardAero Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year guidance was raised well above analyst expectations. The company projected fiscal 2026 EPS of $1.50 to $1.57, compared with a prior consensus estimate of $1.23. Revenue guidance of $6.4 billion to $6.5 billion was broadly in line with expectations, indicating that the main upside is coming from profitability and execution. StandardAero Earnings Report
• Neutral Sentiment: Analyst sentiment remains favorable but mixed. StandardAero has a “Moderate Buy” consensus rating and an average target price of $34, although Jefferies and Zacks previously downgraded the stock to “Hold.” The shares trade at a relatively elevated valuation, with a price-to-earnings ratio above 34.
• Negative Sentiment: CEO selling may be weighing on sentiment. CEO Russell Wayne Ford sold 10,969 shares for approximately $330,000 on August 3 and 40,000 shares for about $1.21 million on August 4. These transactions reduced his direct holdings, although he still owns a substantial stake. StandardAero CEO Insider Selling

Insiders Place Their Bets

In other StandardAero news, CEO Russell Wayne Ford sold 40,000 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $30.24, for a total transaction of $1,209,600.00. Following the completion of the transaction, the chief executive officer directly owned 395,986 shares in the company, valued at $11,974,616.64. This represents a 9.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders sold 130,969 shares of company stock valued at $3,965,909 in the last quarter. Corporate insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On StandardAero

A number of hedge funds have recently made changes to their positions in the company. Price T Rowe Associates Inc. MD grew its holdings in shares of StandardAero by 33.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 14,000,143 shares of the company's stock worth $401,525,000 after purchasing an additional 3,540,167 shares during the last quarter. Victory Capital Management Inc. grew its stake in shares of StandardAero by 175.8% during the fourth quarter. Victory Capital Management Inc. now owns 5,040,723 shares of the company's stock worth $144,568,000 after purchasing an additional 3,212,827 shares during the period. State Street Corp increased its stake in shares of StandardAero by 90.7% in the 2nd quarter. State Street Corp now owns 6,047,097 shares of the company's stock valued at $191,391,000 after acquiring an additional 2,875,579 shares during the last quarter. Wellington Management Group LLP increased its stake in StandardAero by 18.2% in the third quarter. Wellington Management Group LLP now owns 10,345,564 shares of the company's stock valued at $282,330,000 after purchasing an additional 1,593,347 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. raised its stake in StandardAero by 11.1% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 11,984,551 shares of the company's stock worth $343,717,000 after buying an additional 1,194,488 shares during the period.

Analysts Set New Price Targets

SARO has been the subject of several recent research reports. Zacks Research cut StandardAero from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. Canadian Imperial Bank of Commerce reissued an "outperform" rating and set a $39.00 price objective on shares of StandardAero in a report on Friday, May 8th. Susquehanna cut their target price on StandardAero from $40.00 to $37.00 and set a "positive" rating for the company in a research note on Monday, May 11th. Truist Financial raised StandardAero to a "strong-buy" rating in a research report on Friday, May 1st. Finally, Jefferies Financial Group downgraded shares of StandardAero from a "buy" rating to a "hold" rating and decreased their price target for the stock from $34.00 to $30.00 in a research note on Tuesday, June 2nd. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, StandardAero currently has an average rating of "Moderate Buy" and a consensus target price of $34.00.

StandardAero Company Profile

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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