StandardAero (SARO) Registration Filing summary

Company overview and business model

• Operates as the world's largest independent, pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving commercial, military, and business aviation markets.

• Offers a comprehensive suite of aftermarket solutions, including engine maintenance, repair and overhaul, component repair, on-wing and field service, asset management, and engineering solutions.

• Holds leadership positions on most engine platforms served, with 80% of 2023 Engine Services sales from platforms where it is #1 or #2 globally.

• Maintains long-term OEM licenses and authorizations for over 40 key engine platforms, supporting recurring revenue and strong customer relationships.

• Employs approximately 7,300 people across 50+ global facilities, with a diversified customer base of about 5,000.

Financial performance and metrics

• 2023 revenue: $4,563.3 million, up 10% from 2022; net loss: $35.1 million (67% increase from 2022); Adjusted EBITDA: $561.1 million, up 18%.

• Six months ended June 30, 2024: revenue $2,582.9 million (+12% YoY), net income $8.6 million (vs. $12.6 million loss prior year), Adjusted EBITDA $336.0 million (+15.2% YoY).

• Substantial indebtedness: $3,275.7 million as of June 30, 2024, with significant cash flows required for interest and principal payments.

• Adjusted EBITDA margin for 2023: 12.3%; for six months ended June 30, 2024: 13.0%.

• Cash at June 30, 2024: $60.3 million; available liquidity: $516.4 million.

Use of proceeds and capital allocation

• Net proceeds of ~$1,075 million (at $21.50/share) to be used first to redeem $475.5 million of Senior Notes, then to prepay $432.7 million of 2024 Term B-1 Loans and $166.8 million of 2024 Term B-2 Loans.

• No proceeds will be received from shares sold by selling stockholders.

• Proceeds will reduce leverage and interest expense, improving financial flexibility.