StandardAero (NYSE:SARO) Posts Quarterly Earnings Results

by · The Markets Daily

StandardAero (NYSE:SARO – Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.24 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.24, FiscalAI reports. The company had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.57 billion. StandardAero had a return on equity of 11.04% and a net margin of 4.58%.During the same quarter in the prior year, the business posted ($0.04) EPS. The business’s revenue was up 13.5% compared to the same quarter last year. StandardAero updated its FY 2026 guidance to 1.350-1.450 EPS.

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

  • StandardAero reported a record 2025 with revenue up ~16% and Adjusted EBITDA up ~17%, generated $209 million of free cash flow for the year (>$300 million in H2), reduced leverage to 2.4x, and authorized a $450 million share repurchase program.
  • The LEAP program materially accelerated — 60 engines inducted in 2025 vs. 10 in 2024, H2 revenue was ~2.5x H1, the company has developed >475 LEAP component repairs and completed its first full LEAP overhaul, with management expecting continued multi‑decade growth and early profitability in 2026.
  • 2026 guidance targets revenue of $6.275–$6.425 billion, Adjusted EBITDA of $870–$905 million, Adjusted EPS of $1.35–$1.45 (≈18% growth at midpoint), and free cash flow of $270–$300 million, implying continued margin expansion and stronger cash generation.
  • Ongoing supply‑chain part delays remain a constraint (depth of delay improving but not resolved) and CRS faces near‑term disruption from a December fire at its Phoenix facility plus the U.S. government shutdown, which management says will pressure Q1 CRS revenue and margins.

StandardAero Price Performance

NYSE:SARO traded down $1.30 during trading hours on Friday, reaching $30.60. 6,565,886 shares of the company were exchanged, compared to its average volume of 4,500,183. The business has a 50 day moving average of $30.83 and a 200 day moving average of $28.32. StandardAero has a 1-year low of $21.31 and a 1-year high of $34.48. The company has a debt-to-equity ratio of 0.89, a current ratio of 2.18 and a quick ratio of 1.48. The company has a market capitalization of $10.23 billion, a P/E ratio of 36.87 and a beta of 1.04.

Insider Buying and Selling at StandardAero

In other news, CEO Russell Wayne Ford sold 40,000 shares of the stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $30.12, for a total transaction of $1,204,800.00. Following the sale, the chief executive officer directly owned 726,955 shares of the company’s stock, valued at approximately $21,895,884.60. This represents a 5.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In the last ninety days, insiders sold 160,000 shares of company stock worth $4,840,400. Corporate insiders own 1.90% of the company’s stock.

Institutional Trading of StandardAero

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Comerica Bank acquired a new position in StandardAero during the first quarter valued at approximately $26,000. Danske Bank A S bought a new position in shares of StandardAero in the 3rd quarter valued at $82,000. Parallel Advisors LLC raised its holdings in shares of 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 in the last quarter. Aster Capital Management DIFC Ltd bought a new stake in shares of StandardAero during the 4th quarter worth $105,000. Finally, Tower Research Capital LLC TRC boosted its stake in StandardAero by 836.4% in the second quarter. Tower Research Capital LLC TRC now owns 4,345 shares of the company’s stock valued at $138,000 after buying an additional 3,881 shares in the last quarter.

StandardAero announced that its Board of Directors has initiated a share buyback program on Wednesday, December 10th that authorizes the company to buyback $450.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages have commented on SARO. UBS Group increased their price target on shares of StandardAero from $34.00 to $35.00 and gave the company a “neutral” rating in a research note on Thursday. Royal Bank Of Canada reiterated an “outperform” rating and issued a $37.00 target price on shares of StandardAero in a research note on Thursday, January 29th. Zacks Research cut StandardAero from a “hold” rating to a “strong sell” rating in a report on Friday, January 23rd. Weiss Ratings reissued a “hold (c)” rating on shares of StandardAero in a research report on Monday, December 22nd. Finally, Bank of America cut their price objective on StandardAero from $33.00 to $30.00 and set a “neutral” rating for the company in a research report on Friday, November 14th. Four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $34.67.

View Our Latest Research Report on SARO

About StandardAero

(Get Free Report)

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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