StandardAero (SARO) Jefferies Global Industrials Conference 2026 summary

Growth strategy and capital deployment

• Significant deleveraging post-IPO, now at 2.5x leverage, enabling strong cash flow and liquidity for future investments.

• Five capital deployment areas: organic growth, license expansions, M&A, share repurchases, and ongoing investments in facilities and capabilities.

• Recent $180 million investment in expanded licenses expected to yield $25–30 million EBITDA annually starting 2029.

• Ongoing share repurchases, with $100 million completed in the first half of the year.

• Billions in liquidity available for disciplined capital deployment over the next several years.

Platform performance and growth outlook

• LEAP engine revenue projected to grow from $400 million to $1 billion by 2030, with further growth to several billion into the next decade.

• CFM56 platform recently entered the top 10, with capacity doubled in Dallas and a strategy to gain share as the fleet matures.

• CF34 and turboprop platforms continue to show strong profitability and growth, supported by recent facility expansions.

• Military platforms AE2100 and AE1107 represent 80% market share, with high visibility and growth driven by long-term agreements and defense spending.

• HTF7000 remains the exclusive heavy shop visit provider globally, supporting business aviation growth.

Operational efficiency and margin expansion

• LEAP program achieved profitability in Q2, with margins expected to be accretive to Engine Services segment at $1 billion revenue.

• Learning curve improvements and increased repair portfolio drive higher capacity and margins across platforms.

• Engine Services margins have improved 40–80 basis points annually through continuous improvement and are expected to continue rising.

• CRS business delivers 30% margins, driven by new repair development, insourcing, and unique pricing power from proprietary repairs.

• Facility expansions, such as Winnipeg, increase efficiency, throughput, and profitability, with immediate backlog fulfillment.