If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.StandardAero (NYSE: SARO ), a pure-play provider of aircraft engine MRO services in the aerospace and defense industry, has faced some challenges since I initiated coverage with a Buy rating in March. Despite favorable long-term sector tailwinds, S ...

StandardAero (SARO) 2025 Conference May 14, 2025 02:55 PM ET Speaker0 Wow. Speaker1 You're in great shape. Speaker2 But we Speaker3 do in sets. I mean, it's like a swim with a bunch of little guys, and it's like a master's team. Like, we're like little kids except we're old. Yeah. It's kinda Speaker0 That's awesome. Speaker3 How we do Speaker0 it. Alright. Good afternoon, everybody. Thanks for joining. My name is Russell Ford. I'm the chairman and CEO of Standard Aero. Standard Aero is the world's largest i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-42298 StandardAero, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 30-1138150 ( ...

StandardAero (SARO) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Company Participants Rama Bondada - VP - IRRussell Ford - Chairman & CEODaniel Satterfield - CFOSeth Seifman - Executive DirectorAlex Trapp - CSOMyles Walton - Managing DirectorSheila Kahyaoglu - Aerospace & Defense and Airlines Equity ResearchRonald Epstein - MD - Aerospace & DefenseKrista Friesen - Director - Equity ResearchKen Herbert - Managing Director Conference Call Participants Douglas Harned - AnalystKristine Liwag - AnalystGavin Pa ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $1.4 billion, a 16% increase from $1.2 billion in Q1 2024, with 14.4% being organic growth [18] - Adjusted EBITDA rose to $198 million, up 20% from $166 million in the prior year [18] - Adjusted EBITDA margin improved to 13.8%, a 40 basis point increase year-over-year [19] - Net income surged to $63 million compared to $3 million in the prior period, driven by increased earnings and reduced interest expenses [19] - Free cash flow was a use of $64 million, reflecting typical seasonality and investments, but improved by $38 million year-over-year [22] Business Line Data and Key Metrics Changes - Engine Services revenue increased by $171 million to $1.3 billion, representing 16% growth, driven by strong demand in the commercial aftermarket [20] - Component Repair Services revenue grew 21% to $167 million, supported by the ATI acquisition, contributing $22 million [21] - Engine Services adjusted EBITDA grew 16%, while Component Repair Services adjusted EBITDA increased by 32%, with margins expanding to 28% [21] Market Data and Key Metrics Changes - Commercial aerospace grew 18% year-over-year, with strong demand across major platforms [7] - Business Aviation Group increased 13% year-over-year, driven by demand for midsize and large cabin business aircraft [9] - Military business grew 10%, aided by the AeroTurbine acquisition and growth in the J85 program [9] Company Strategy and Development Direction - The company is focused on ramping up the LEAP program, having secured additional regulatory approvals and completed its first LEAP shop visit [13][14] - Continued investment in CFN56 and CF34 platforms, with record performance noted in the CF34 platform [14] - Expansion of engine component repair capabilities is a priority, with significant progress made in developing new LEAP repairs [15] - The company is actively pursuing M&A opportunities, with a growing pipeline of targets and a disciplined approach to capital allocation [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the commercial aftermarket, citing strong long-term demand visibility despite short-term volatility in passenger traffic [7][12] - The company raised its sales and earnings guidance for 2025, now expecting revenue between $5.825 billion and $5.975 billion and adjusted EBITDA between $775 million and $795 million [25] - Management acknowledges geopolitical and macroeconomic uncertainties but emphasizes a solid foundation for growth [26] Other Important Information - The estimated net impact of tariffs for 2025 is projected to be around $15 million, which has been incorporated into the updated guidance [12][25] - The company is managing tariff impacts through various mitigation actions, including contractual mechanisms and pricing opportunities [11] Q&A Session Summary Question: Confidence in CF34 platform growth amidst U.S. airlines' slower capacity - Management expressed confidence in maintenance activity remaining stable despite airlines' comments on passenger traffic volatility, as engine MRO is typically nondiscretionary [31] Question: M&A environment and opportunities - Management indicated that they remain active in pursuing M&A opportunities, with a robust environment and attractive targets available [34] Question: Growth drivers in Engine Services - Management highlighted military and CF34 as key growth drivers, with expectations for LEAP and CFM56 to contribute significantly in the future [36][60] Question: Margin expectations for the remainder of the year - Management noted that margin headwinds are primarily from LEAP and CFM56 growth, but they expect both programs to be accretive long-term [43] Question: Update on ATI acquisition - The integration of ATI is progressing well, with strong revenue contributions and operational synergies being realized [68] Question: Supply chain for LEAP parts - Management reported no significant supply chain issues for LEAP parts, as they are in the final industrialization phase [74] Question: Repair capabilities and market opportunities - Management emphasized a methodical approach to developing repair capabilities in close coordination with OEMs, with ongoing opportunities for expansion [80][83]

Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives, plans or cost savings in any specified time frame or at all. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we oper ...

Exhibit 99.1 StandardAero Announces First Quarter Results Strong Start to the Year, Executing on Priorities, therefore Raising FY 2025 Guidance SCOTTSDALE, Arizona. — (BUSINESS WIRE) — StandardAero (NYSE: SARO) announced results today for the three months ended March 31, 2025 ("First Quarter 2025"). Net debt, calculated as total funded debt, net of cash and cash equivalents on our balance sheet as of March 31, 2025, was $2,233.0 million compared to $3,304.4 million as of March 31, 2024. Net debt to Adjusted ...

StandardAero, Inc. (SARO) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-42298 StandardAero, Inc. (Exact name of Registrant as specified in its Charter) Delaware 30-1138150 (State or other jurisdiction of i ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 23% for the year and 37% in Q4, reflecting strong growth and operational efficiency [9][30][40] - Revenue for 2024 grew by 15%, with Q4 revenue growth at 22% [28][39] - Adjusted EBITDA margin expanded by 90 basis points year-over-year [30][56] Business Line Data and Key Metrics Changes - Engine Services revenue increased by 15% to $4.6 billion, driven by strong demand in commercial aerospace [43] - Component Repair Services revenue grew by 15% to $592 million, with a 23% increase in adjusted EBITDA [45][46] - Business aviation revenue grew by 8%, while military and helicopter revenue declined by 3% due to specific platform challenges [29][43] Market Data and Key Metrics Changes - The commercial aerospace market exhibited 25% growth in 2024 and 33% growth in Q4 [9][28] - Strong demand in the aftermarket for commercial aerospace, with significant growth in both Engine Services and Component Repair Services segments [28][39] - The military and helicopter end market saw slight revenue declines, primarily due to the V-22 Osprey grounding [29][43] Company Strategy and Development Direction - The company is focused on expanding its LEAP program, with significant investments in capacity and capabilities [11][34] - Continued emphasis on component repair as a strategic driver, with plans to introduce new repairs and enhance operational efficiency [35][36] - The company aims to pursue accretive M&A opportunities to complement its existing portfolio [36][109] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across end markets, particularly in commercial aerospace [9][60] - The outlook for 2025 includes projected revenue between $5.8 billion and $5.95 billion, with continued growth expected [32][54] - Management noted that maintenance work is less affected by immediate changes in flight operations, providing stability in revenue [76] Other Important Information - The company completed its IPO in October 2024, which allowed for debt refinancing and significant interest savings [26][51] - A new 10-year agreement with GE on the CF34 platform is expected to increase annual earnings significantly [22][48] - The company is targeting long-term net leverage between 2 and 3 times to maintain financial flexibility [52] Q&A Session Summary Question: Growth in commercial aerospace and contributing factors - Management highlighted strong growth in CF34 and turboprop segments, with CFM56 expected to be a major revenue driver in 2025 [67][68] Question: Impact of airline capacity cuts on maintenance trends - Management indicated that maintenance work is typically delayed in response to changes in flight operations, providing confidence in future plans [76][77] Question: Progress on LEAP service contracts and revenue opportunities - Management noted a strong pipeline for LEAP contracts, with airlines looking to secure long-term maintenance agreements [88][90] Question: Margin dilution from LEAP and CFM56 ramp-up - Management acknowledged that while there will be some margin dilution from LEAP, overall growth in other segments will offset this [100][101] Question: M&A opportunities and integration timelines - Management expressed enthusiasm for potential CRS acquisitions and indicated a range of 6 to 24 months for integration depending on deal complexity [109][114] Question: Impact of tariffs on business - Management confirmed ongoing monitoring of tariff proposals and compliance with customs requirements, with historical exemptions expected to continue [118]