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 Engine Services sales in 2023 from platforms where it holds #1 or #2 positions globally.

• Maintains long-term OEM licenses and authorizations for over 40 key engine platforms, providing preferred access to OEM parts and technical data.

• Revenue is highly diversified across end markets and customers, with approximately 77% of 2023 revenue from long-term contractual agreements.

Financial performance and metrics

• 2023 revenue: $4,563.3 million, up 10% from $4,150.5 million in 2022.

• 2023 net loss: $35.1 million, up from $21.0 million in 2022, primarily due to substantial historical indebtedness.

• 2023 Adjusted EBITDA: $561.1 million, up 18% from $475.4 million in 2022.

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

• As of June 30, 2024, total indebtedness was $3,275.7 million.

Use of proceeds and capital allocation

• Net proceeds of approximately $937.5 million (at $21.50/share midpoint) expected from the IPO.

• Proceeds will be used to redeem all $475.5 million of Senior Notes and prepay $333.4 million of 2024 Term B-1 Loans and $128.6 million of 2024 Term B-2 Loans.

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