StandardAero, Inc. (NYSE: SARO) announced that affiliates of The Carlyle Group Inc. and GIC will sell 50 million shares of the company’s common stock in a secondary offering priced at $31.00 per share. The transaction is expected to close on January 29, 2026, and the selling shareholders will receive all of the net proceeds; the company will not receive any proceeds from the sale.
The offering is accompanied by a concurrent share repurchase of $50 million of StandardAero stock at the same price, a move that is part of a $450 million stock repurchase program approved by the board in December 2025. The repurchase offsets a portion of the dilution that the secondary sale will create and signals management’s confidence in the company’s valuation.
Investors reacted negatively to the announcement, citing the large dilutionary impact and the fact that two major shareholders are reducing their stakes. Management, however, emphasized that the repurchase and the company’s strong financial performance mitigate the short‑term dilution concerns.
Preliminary estimates for the year ended December 31, 2025, show revenue rising 15.6%–16.1% to $6.053 billion–$6.083 billion from $5.237 billion in 2024. Net income is projected at $270 million–$280 million, up from $11 million in 2024, driven by higher demand for aftermarket services and disciplined cost management. Adjusted EBITDA is expected to reach $806 million–$812 million, a 16.7%–17.6% increase over $690.5 million in 2024, reflecting improved pricing power and operational leverage. Cash flow from operations is projected at $310 million–$320 million versus $76.3 million in 2024, while free cash flow is expected to be $200 million–$210 million compared with a $45 million cash outflow in 2024.
StandardAero’s core business is the provision of aftermarket services for fixed‑ and rotary‑wing aircraft, serving commercial, military, and business aviation markets. The company’s growth is supported by robust demand for maintenance, repair, and overhaul services, and the preliminary results indicate that the company is successfully translating that demand into higher revenue and profitability. The secondary offering follows a history of similar sales by Carlyle and GIC, including a 30 million‑share sale in May 2025 and another in March 2025, underscoring the ongoing adjustment of these investors’ positions.
CEO Russell Ford said the repurchase program reflects the company’s confidence in its future and its ability to capitalize on market dislocations. He added that the company remains focused on investing in growth opportunities and enhancing its facilities, technology, and capabilities to serve customers, while also returning value to shareholders through the buyback program.
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