StandardAero (SARO) investor relations material

Industry positioning and market dynamics

• Operates across commercial, military, private jet, and helicopter aerospace sectors, offering a unique breadth in the industry.

• Entering its 115th year, the company is recognized as a constant compounder with a distinctive market position.

• Post-COVID surge in flying and long-term 5–7% annual industry growth are driving unprecedented MRO demand.

• Aging fleets and slow OEM production mean new aircraft add to, rather than replace, the existing fleet, boosting MRO needs.

• Airlines are now seeking long-term contracts, some extending to 2030, providing high business visibility.

Capacity, labor, and operational strategy

• Investments in capacity and retention of skilled labor during COVID have positioned the company to meet rising demand.

• Focus on reducing turnaround times by increasing in-house component repair capabilities.

• Vertical integration in component repair shortens repair cycles, reduces reliance on third parties, and improves margins.

• Expansion of facilities, such as the Dallas CFM56 site, has doubled capacity and is meeting strong airline demand.

• No current concerns about labor, capacity, or environmental constraints; main focus is on managing source-controlled parts.

Component Repair Services (CRS) growth and strategy

• CRS is a highly fragmented market, with 11 acquisitions in 8 years, focusing on unique IP and new repair processes.

• CRS revenue has grown 600% in a few years, now approaching $700 million, with significant margin accretion.

• CRS insourcing has shifted more repairs in-house, reducing costs and increasing profitability.

• CRS capabilities are leveraged for both internal needs and third-party/competitor repairs, including for LEAP and CFM56 engines.

• CRS is expanding into non-aviation markets, such as distributed power for data centers, driven by AI-related demand.