StandardAero, Inc. (NYSE: SARO) reported record fourth‑quarter 2025 results, with revenue of $1.60 billion, up 13.5% year‑over‑year, and net income of $78.6 million, a turnaround from a $14.1 million loss in Q4 2024. Adjusted EBITDA rose to $209.7 million, a 12.7% increase from $186.2 million in the prior year, and the adjusted EBITDA margin held steady at 13.1% versus 13.2% a year earlier.
The full‑year 2025 performance mirrored the quarterly momentum: revenue reached $6.06 billion, up 15.8% from $5.24 billion, and adjusted EBITDA totaled $808.2 million, a 17.0% increase from $690.5 million in 2024. Adjusted EPS for the year was $1.19, reflecting the company’s disciplined cost management and operational leverage.
StandardAero’s management highlighted the drivers behind the growth. CEO Russell Ford said, "2025 was a record year for StandardAero, highlighted by 16% revenue growth, 17% Adjusted EBITDA growth, and meaningful free cash flow generation, reflecting sustained strength across the global engine aftermarket and disciplined execution." He added that commercial aerospace demand remained robust and that the Engine Services segment delivered strong double‑digit growth, while Component Repair Services achieved nearly 20% revenue growth and record margins, supported by operational excellence, pricing, and synergies from the ATI acquisition.
CFO Daniel Satterfield noted that the quarter’s $1.60 billion revenue represented a 13.5% increase from $1.4 billion in Q4 2024, all organic. He also said, "Adjusted EBITDA increased to $210 million for the fourth quarter 2025 compared to $186 million for the prior year period," and that the net debt to adjusted EBITDA leverage ratio fell from 3.1x to 2.4x. For 2026, the company expects adjusted EPS of $1.35 to $1.45 versus $1.19 in 2025, implying 18% EPS growth at the midpoint, and free cash flow of $270 million to $300 million, a 36% increase at the midpoint.
The company guided for 2026 revenue of $6.28 billion to $6.43 billion, an 8.5% to 9.5% year‑over‑year growth, and adjusted EBITDA of $870 million to $905 million, reflecting a 16.5% increase in earnings power. Management emphasized that the guidance is underpinned by attractive market fundamentals, a robust and diversified backlog, and continued execution progress on strategic priorities. "We enter 2026 with strong momentum, supported by attractive market fundamentals, a robust and diversified backlog, and continued execution progress on our strategic priorities," the CEO said.
Headwinds remain, including a small fire at the Phoenix CRS facility in December that caused a shutdown, the U.S. government shutdown that limited military business growth, and ongoing supply‑chain delays in parts availability. Tailwinds include strong commercial aerospace demand, the rapid ramp‑up of the LEAP program—60 LEAP engines were inducted in 2025 versus 10 in 2024—and operational improvements across the business. The company also authorized a $450 million share repurchase program in December, underscoring management’s confidence in the company’s cash‑generating ability.
Market reaction to the announcement was mixed. The stock fell 3.17% after the results, closing at $31.84 on February 25, 2026. Investors cited persistent supply‑chain constraints and the company’s premium valuation as concerns, even as the earnings beat expectations and the guidance signaled continued growth.
The Q4 diluted EPS of $0.24 fell short of the $0.25 estimate, a slight miss that reflects the impact of the Phoenix facility shutdown and the government shutdown on earnings power, despite the strong revenue growth and margin stability.
Overall, StandardAero’s results demonstrate a solid turnaround, robust growth drivers, and a confident outlook for 2026, while highlighting the operational challenges that could temper near‑term performance.
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