StandardAero (SARO) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1,557.4M, up 4.0% YoY; Adjusted EBITDA rose 15.0% to $224.9M, with margin up 130 bps to 14.4%.

• Net income increased 36.2% to $92.8M and adjusted diluted EPS rose 30.0% to $0.39.

• FY2026 revenue, Adjusted EBITDA and adjusted EPS guidance increased; adjusted free cash flow guidance remained $270M–$300M.

Financial highlights

• Q3 operating income increased 17.3% to $161.1M; diluted GAAP EPS was $0.28 versus $0.20 a year earlier.

• Q3 cash flow from operations was $128.9M and Adjusted free cash flow was $99.2M; working capital used $37M.

• YTD revenue rose 7.2% to $4.784B and Adjusted EBITDA rose 10.0% to $658M, with a 13.8% margin.

• Q3 cost of revenue rose 1.6% to $1.296B, below revenue growth; SG&A increased 24.5% to $75.9M.

Outlook and guidance

• FY2026 revenue guidance is $6.525B–$6.645B and Adjusted EBITDA guidance is $905M–$920M.

• Adjusted diluted EPS guidance increased to $1.57–$1.62; adjusted free cash flow guidance is $270M–$300M.

• Segment revenue guidance is $5.770B–$5.870B for Engine Services and $755M–$775M for Component Repair Services.

• End-market growth expectations: commercial aerospace low double digits to mid-teens, business aviation high single digits to low double digits, and military and helicopter low double digits.

• Commercial demand visibility extends into 2028, with much of 2027 revenue scheduled; FY2027 guidance is expected in February.