StandardAero (NYSE:SARO) Issues Quarterly Earnings Results

StandardAero (NYSE:SARO) posted its quarterly earnings results on Wednesday. The company reported $0.24 EPS for the quarter, meeting the consensus estimate of $0.24, FiscalAI reports. The firm had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.57 billion. StandardAero had a return on equity of 9.63% and a net margin of 3.15%.The business’s revenue for the quarter was up 13.5% on a year-over-year basis. During the same quarter last year, the firm earned ($0.04) earnings per share. StandardAero updated its FY 2026 guidance to 1.350-1.450 EPS.

Here are the key takeaways from StandardAero’s conference call:

• StandardAero reported a record 2025 with revenue up ~16% and Adjusted EBITDA up ~17%, generated $209 million of free cash flow for the year (>$300 million in H2), reduced leverage to 2.4x, and authorized a $450 million share repurchase program.
• The LEAP program materially accelerated — 60 engines inducted in 2025 vs. 10 in 2024, H2 revenue was ~2.5x H1, the company has developed >475 LEAP component repairs and completed its first full LEAP overhaul, with management expecting continued multi‑decade growth and early profitability in 2026.
• 2026 guidance targets revenue of $6.275–$6.425 billion, Adjusted EBITDA of $870–$905 million, Adjusted EPS of $1.35–$1.45 (≈18% growth at midpoint), and free cash flow of $270–$300 million, implying continued margin expansion and stronger cash generation.
• Ongoing supply‑chain part delays remain a constraint (depth of delay improving but not resolved) and CRS faces near‑term disruption from a December fire at its Phoenix facility plus the U.S. government shutdown, which management says will pressure Q1 CRS revenue and margins.

StandardAero Stock Performance

Shares of NYSE SARO opened at $30.78 on Thursday. StandardAero has a 12-month low of $21.31 and a 12-month high of $34.48. The firm has a market capitalization of $10.30 billion, a price-to-earnings ratio of 55.97 and a beta of 1.04. The company has a current ratio of 2.18, a quick ratio of 1.48 and a debt-to-equity ratio of 0.89. The firm has a 50 day moving average of $30.75 and a 200 day moving average of $28.30.

Key Headlines Impacting StandardAero

Here are the key news stories impacting StandardAero this week:

• Positive Sentiment: Management raised FY2026 guidance to $1.35–$1.45 EPS (well above consensus ~$1.04) and gave revenue guidance around $6.3–$6.4B, which signals stronger forward profitability and top-line growth potential. FY2026 Guidance / Slide Deck
• Positive Sentiment: Full-year 2025 results showed revenue up ~15.8% to $6.06B and adjusted diluted EPS of $1.19, supporting the case that the business is scaling and generating improving adjusted profits. Business Wire: FY2025 Results
• Positive Sentiment: Quarterly revenue of $1.60B beat consensus (~$1.57B) and revenue rose 13.5% year-over-year, indicating demand momentum despite a small EPS miss. MarketBeat: Q4 Results & Call
• Neutral Sentiment: The earnings call transcript provides management color on margins, costs, and the drivers behind guidance — useful for modeling but not a single market-moving surprise. Seeking Alpha: Q4 2025 Transcript
• Neutral Sentiment: Analyst coverage is muted: consensus broker recommendation is “Hold,” suggesting limited near-term analyst-driven upside. AmericanBankingNews: Consensus Rating
• Neutral Sentiment: Recent coverage pieces are debating valuation after mixed near-term performance; valuation vigilance may keep some buyers sidelined. Yahoo Finance: Valuation Article
• Negative Sentiment: The quarter missed EPS by $0.01 (reported $0.24 vs. $0.25 expected), which can temper sentiment given the high multiple (P/E ~56) — small misses matter more when expectations are lofty. MarketBeat: Q4 Results
• Negative Sentiment: Short interest jumped ~23% in February to ~10.6M shares (≈3.2% of float) with a ~2.9 days-to-cover — higher shorting can add downward pressure and increase volatility.

Insider Buying and Selling

In other news, CEO Russell Wayne Ford sold 40,000 shares of the firm’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $30.12, for a total value of $1,204,800.00. Following the transaction, the chief executive officer owned 726,955 shares of the company’s stock, valued at $21,895,884.60. This trade represents a 5.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 160,000 shares of company stock valued at $4,840,400 in the last three months. Corporate insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On StandardAero

Institutional investors and hedge funds have recently modified their holdings of the stock. Storgate LLC purchased a new stake in StandardAero in the 4th quarter valued at $219,000. Federation des caisses Desjardins du Quebec grew its holdings in StandardAero by 18.9% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 11,685 shares of the company’s stock valued at $335,000 after purchasing an additional 1,860 shares in the last quarter. Granite Investment Partners LLC acquired a new position in StandardAero during the 4th quarter worth $260,000. Creative Planning acquired a new position in StandardAero in the third quarter valued at approximately $253,000. Finally, Corient Private Wealth LLC acquired a new position in shares of StandardAero during the second quarter worth approximately $222,000.

StandardAero declared that its Board of Directors has initiated a stock repurchase program on Wednesday, December 10th that permits the company to repurchase $450.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. UBS Group lowered their price objective on shares of StandardAero from $35.00 to $34.00 and set a “neutral” rating on the stock in a research report on Thursday, January 15th. Zacks Research lowered shares of StandardAero from a “hold” rating to a “strong sell” rating in a report on Friday, January 23rd. Sanford C. Bernstein reissued an “outperform” rating and issued a $39.00 target price on shares of StandardAero in a research note on Tuesday. Weiss Ratings reissued a “hold (c)” rating on shares of StandardAero in a research report on Monday, December 22nd. Finally, Susquehanna set a $38.00 target price on StandardAero in a report on Thursday, January 15th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, StandardAero presently has a consensus rating of “Hold” and a consensus target price of $34.56.

StandardAero Company Profile

StandardAero is a global aerospace maintenance, repair and overhaul (MRO) provider specializing in gas turbine engines, auxiliary power units (APUs), airframe components and oil & gas rotating equipment. The company offers a full suite of technical services including engine repair and overhaul, component repair, accessory maintenance, parts manufacturing and on-site field support. Its customer base spans commercial airlines, business and general aviation operators, regional carriers, original equipment manufacturers (OEMs) and defense organizations.

With roots dating back to 1911, StandardAero has grown through strategic acquisitions and organic expansion to become one of the largest independent MRO providers in the industry.