StandardAero (SARO) Q4 2025 earnings summary

Executive summary

• Achieved record results in 2025, with revenue up 16% year-over-year and Adjusted EBITDA up 17%, driven by robust demand across all end markets and strategic investments in growth platforms.

• Net income surged to $277 million, a 2,000% year-over-year increase, supported by operating leverage, improved mix, and productivity gains.

• Free Cash Flow reached $209 million for the year, with over $300 million generated in the second half, despite significant growth investments.

• Restructured contracts eliminated $300-$400 million of low-margin revenue, improving reported margins.

• Authorized a $450 million share repurchase program, enhancing capital allocation flexibility.

Financial highlights

• Full year 2025 revenue grew 15.8% to $6.06 billion; Q4 revenue was $1.6 billion, up 13.5% year-over-year, all organic.

• Adjusted EBITDA for 2025 was $808 million, up 17%, with margin expanding to 13.3%.

• Net income for 2025 was $277 million, a $266 million increase year-over-year.

• Adjusted Net Income was $398 million; Adjusted EPS was $1.19.

• Free Cash Flow for 2025 was $209 million; Q4 Free Cash Flow was $308 million.

Outlook and guidance

• 2026 revenue guidance: $6.275-$6.425 billion, reflecting 4%-6% growth including pass-through revenue elimination.

• Engine Services revenue expected at $5.5-$5.625 billion (4% growth; >10% excluding pass-through impact).

• Component Repair Services (CRS) revenue guidance: $775-$800 million (11% growth).

• Adjusted EBITDA guidance: $870-$905 million (10% growth), with margin improvement to ~14%.

• Adjusted EPS guidance: $1.35-$1.45 (18% growth); Free Cash Flow: $270-$300 million (36% growth).