StandardAero (SARO) Q1 2026 earnings summary

Executive summary

• Revenue grew 13.3% year-over-year to $1.63 billion in Q1 2026, with double-digit growth across all major end markets including commercial aerospace, business aviation, military, and helicopter.

• Net income increased 27% to $79.9 million, with net income margin improving to 4.9%.

• Adjusted EBITDA rose 2.5% to $203.2 million, though margin declined to 12.5% from 13.8% due to mix and ramp in LEAP and CFM56 DFW.

• Announced the acquisition of Unified Turbines to enhance component repair capabilities and support long-term growth.

• Repurchased $60 million in shares in Q1 as part of a $450 million repurchase program.

Financial highlights

• Q1 2026 revenue: $1,626.9 million, up 13.3% year-over-year.

• Adjusted EBITDA: $203.2 million (up 2.5%); margin declined to 12.5% from 13.8%.

• Net income: $79.9 million (up 27%); adjusted EPS grew to $0.33.

• Free cash flow was negative at $(134) million, reflecting typical Q1 seasonality and working capital investment.

• Net debt to adjusted EBITDA improved to 2.6x from 3.1x year-over-year.

Outlook and guidance

• FY26 revenue guidance raised to $6,325–$6,450 million.

• Adjusted EBITDA guidance increased to $875–$905 million; adjusted EPS guidance raised to $1.40–$1.50.

• Free cash flow guidance reiterated at $270–$300 million.

• End market revenue growth assumptions: commercial aerospace low double-digit to mid-teens, military & helicopter low double-digit, business aviation high single to low double-digit.

• Engine Services segment margins expected to exceed 14% for the remainder of 2026.