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 commercial aerospace demand and strong performance across all end markets.

• Net income surged by 2,000% year-over-year to $277 million, 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.

• Strategic investments in growth platforms, successful integration of acquisitions, and expansion of key facilities supported results.

• Balance sheet strengthened with leverage ratio reduced to 2.4x, providing flexibility for future investments and share repurchases.

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% year-over-year, with margin expanded to 13.3%.

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

• Adjusted EPS for 2025 was $1.19.

• Free Cash Flow for 2025 was $209 million, with 75% conversion on net income.

Outlook and guidance

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

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

• Component Repair Services 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 at midpoint); Free Cash Flow guidance: $270–$300 million (36% growth at midpoint).