Workflow
StandardAero, Inc.(SARO) - 2024 Q4 - Annual Results
SAROStandardAero, Inc.(SARO)2025-03-10 20:23

Revenue Growth - Fourth Quarter 2024 revenue was 1,409.6million,a21.81,409.6 million, a 21.8% increase from 1,157.8 million in the prior year period, driven by a 33% growth in the commercial aerospace market[5] - Full Year 2024 revenue reached 5,237.2million,a14.85,237.2 million, a 14.8% increase compared to 4,563.3 million in the prior year, supported by a 25% increase in the commercial aerospace market[13] - Engine Services segment revenue for Full Year 2024 increased 14.7% to 4,644.8million,drivenbya264,644.8 million, driven by a 26% increase in the commercial aerospace market[16] - Component Repair Services segment revenue for Full Year 2024 increased 15.4% to 592.4 million, with a 17% increase in the commercial aerospace end market[19] - Revenue for Q4 2024 reached 1,409.6million,a21.71,409.6 million, a 21.7% increase from 1,157.8 million in Q4 2023[45] - Total revenue for the year ended December 31, 2024, was 5,237.2million,a14.85,237.2 million, a 14.8% increase from 4,563.3 million in 2023[51] Profitability and Income - Adjusted EBITDA for the Fourth Quarter 2024 increased 37.2% year-over-year to 186.2million,withanAdjustedEBITDAmarginof13.2186.2 million, with an Adjusted EBITDA margin of 13.2%, up 150 basis points from the prior year[6][8] - Net income for Full Year 2024 was 11.0 million, a significant recovery from a net loss of 35.1millionintheprioryear[14]−OperatingincomefortheyearendedDecember31,2024,was35.1 million in the prior year[14] - Operating income for the year ended December 31, 2024, was 403.2 million, up 19.5% from 337.4millionin2023[45]−Thecompanyreportedabasiclosspershareof337.4 million in 2023[45] - The company reported a basic loss per share of 0.04 for Q4 2024, compared to a loss of 0.02inQ42023[45]−ProfitbeforetaxfortheyearendedDecember31,2023,was0.02 in Q4 2023[45] - Profit before tax for the year ended December 31, 2023, was 5.1 million, compared to a loss of 35.1millionin2022[54]FinancialPositionandDebtManagement−Thecompanycompleteda35.1 million in 2022[54] Financial Position and Debt Management - The company completed a 1.7 billion IPO, generating net proceeds of approximately 1,202.8million,whichwereusedtopaydowndebtandimprovethecapitalstructure[6][21]−TheNetDebttoAdjustedEBITDALeverageRatioimprovedto3.1xasofDecember31,2024,reflectingastrongerbalancesheetpost−IPO[24]−Long−termdebtdecreasedto1,202.8 million, which were used to pay down debt and improve the capital structure[6][21] - The Net Debt to Adjusted EBITDA Leverage Ratio improved to 3.1x as of December 31, 2024, reflecting a stronger balance sheet post-IPO[24] - Long-term debt decreased to 2,207,977 thousand in 2024 from 3,172,108thousandin2023,areductionofabout30.43,172,108 thousand in 2023, a reduction of about 30.4%[43] - Total liabilities decreased to 3,840,197 thousand in 2024 from 4,612,690thousandin2023,indicatingadeclineofapproximately16.74,612,690 thousand in 2023, indicating a decline of approximately 16.7%[43] - Interest expense for the year was 282.5 million, down from 309.6millionin2023,indicatingimproveddebtmanagement[45]AssetGrowth−Totalassetsincreasedto309.6 million in 2023, indicating improved debt management[45] Asset Growth - Total assets increased to 6,213,601 thousand as of December 31, 2024, compared to 5,759,402thousandin2023,reflectingagrowthofapproximately7.95,759,402 thousand in 2023, reflecting a growth of approximately 7.9%[43] - Current assets rose to 2,485,134 thousand in 2024, up from 2,135,770thousandin2023,markinganincreaseofabout16.42,135,770 thousand in 2023, marking an increase of about 16.4%[43] - Cash balance increased significantly to 102,581 thousand in 2024 from 57,982thousandin2023,representingagrowthofapproximately76.857,982 thousand in 2023, representing a growth of approximately 76.8%[43] - Stockholders' equity increased to 2,373,404 thousand in 2024, up from 1,146,712thousandin2023,reflectingagrowthofabout106.51,146,712 thousand in 2023, reflecting a growth of about 106.5%[43] Future Guidance and Investments - Full Year 2025 revenue guidance is set between 5,800 million and 5,950million,withexpectationsofcontinueddouble−digitgrowthinbothEngineServicesandComponentRepairServicessegments[26]−MajorplatformexpansioninvestmentsforFullYear2025areprojectedat5,950 million, with expectations of continued double-digit growth in both Engine Services and Component Repair Services segments[26] - Major platform expansion investments for Full Year 2025 are projected at 90 million, supporting ongoing growth initiatives[26] - The company plans to continue monitoring market conditions and adjusting strategies accordingly to enhance growth and operational efficiency[32] - The company is focusing on business transformation costs related to the LEAP engine line and expanding CFM56 capabilities, indicating ongoing investment in new technologies[49] - The company plans to continue expanding its CFM56 capabilities into Dallas, Texas, as part of its ongoing product industrialization efforts[54] Non-GAAP Measures and Operational Performance - Adjusted EBITDA and Adjusted EBITDA Margin are key metrics for evaluating operational performance, although specific forward-looking figures are not provided[40] - The company emphasizes the importance of non-GAAP financial measures for understanding financial condition and operational results[36] - Management acknowledges the limitations of non-GAAP measures and advises against relying solely on them for evaluating business performance[38]