StandardAero (NYSE:SARO) Issues Quarterly Earnings Results

StandardAero (NYSE:SARO) released its quarterly earnings results on Thursday. The company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.08, FiscalAI reports. The business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.59 billion. StandardAero had a net margin of 5.12% and a return on equity of 14.67%. StandardAero’s revenue for the quarter was up 4.6% compared to the same quarter last year. During the same period last year, the firm earned $0.20 earnings per share. StandardAero updated its FY 2026 guidance to 1.500-1.570 EPS.

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

• Strong second-quarter results: Revenue increased 4.6% year over year to $1.6 billion, while adjusted EBITDA rose 12.3% to $230 million and adjusted EBITDA margin reached a record 14.4%. Free cash flow was positive at $50 million, and adjusted EPS increased 24% to $0.40.
• 2026 guidance was raised: Management increased revenue guidance to $6.375 billion-$6.5 billion, adjusted EBITDA guidance to $885 million-$910 million, and adjusted EPS guidance to $1.50-$1.57. The company maintained its adjusted free cash flow outlook of $270 million-$300 million.
• Growth investments are gaining traction: The LEAP and CFM56 Dallas-Fort Worth programs reached profitability in the quarter, while a $180 million license expansion is expected to generate approximately $25 million of annual adjusted EBITDA at full run rate. StandardAero also completed its Unified Turbines acquisition and repurchased $40 million of shares during the quarter.
• Component Repair Services faced near-term margin pressure: CRS adjusted EBITDA margin fell to 26.3% from 29.0% due to work migration, employee ramp inefficiencies, and unfavorable military-platform timing. Management expects the pressure to ease in the second half and reiterated its full-year CRS outlook.
• Demand remains resilient despite supply-chain and fuel-price risks: Management reported no meaningful deterioration in supply-chain conditions or commercial demand from elevated jet fuel prices, but military revenue declined 3% in the quarter because of platform delays. The company expects military and helicopter growth to accelerate in the second half of 2026.

StandardAero Stock Down 2.4%

Shares of NYSE:SARO traded down $0.71 during trading on Friday, reaching $29.29. 6,297,743 shares of the stock were exchanged, compared to its average volume of 3,160,836. StandardAero has a 1-year low of $23.83 and a 1-year high of $34.48. The stock has a fifty day moving average of $27.93 and a two-hundred day moving average of $28.03. The company has a debt-to-equity ratio of 0.81, a current ratio of 2.12 and a quick ratio of 1.59. The firm has a market cap of $9.74 billion, a price-to-earnings ratio of 30.20 and a beta of 0.92.

More StandardAero News

Here are the key news stories impacting StandardAero this week:

• Positive Sentiment: Q2 results exceeded expectations. StandardAero reported adjusted earnings of $0.40 per share, above estimates ranging from $0.32 to $0.35 and double the $0.20 reported a year earlier. Revenue reached $1.60 billion, slightly ahead of the $1.59 billion consensus and up 4.6% year over year. StandardAero Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year guidance was raised above Wall Street expectations. StandardAero forecast fiscal 2026 EPS of $1.50–$1.57, compared with consensus of $1.23, while revenue guidance of $6.4–$6.5 billion was broadly in line with expectations. The guidance supports the outlook for continued earnings growth in the aerospace maintenance, repair and overhaul market.
• Neutral Sentiment: Investor expectations remain relatively favorable. Analysts maintain a consensus “Moderate Buy” rating and an average price target of $34, above recent trading levels. However, the stock’s price-to-earnings ratio above 33 indicates that considerable optimism may already be reflected in the valuation.
• Negative Sentiment: CEO Russell Wayne Ford continued selling shares. Ford sold 40,000 shares on August 6 at an average price of $31.42, worth approximately $1.26 million, reducing his position by 11.24%. This followed sales of 40,000 shares on August 4 and 10,969 shares on August 3, adding to a pattern of sizable insider selling that may have pressured the stock or encouraged profit-taking. SEC Insider Transaction Filing

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Susquehanna reduced their price objective on StandardAero from $40.00 to $37.00 and set a “positive” rating on the stock in a research note on Monday, May 11th. Zacks Research cut shares of StandardAero from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. Jefferies Financial Group lowered shares of StandardAero from a “buy” rating to a “hold” rating and lowered their price target for the stock from $34.00 to $30.00 in a report on Tuesday, June 2nd. UBS Group lifted their price objective on StandardAero from $35.00 to $36.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Truist Financial upgraded shares of StandardAero to a “strong-buy” rating in a research note on Friday, May 1st. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $34.17.

Insider Buying and Selling

In other StandardAero news, CEO Russell Wayne Ford sold 40,000 shares of the company’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $31.42, for a total transaction of $1,256,800.00. Following the transaction, the chief executive officer owned 315,986 shares in the company, valued at approximately $9,928,280.12. This represents a 11.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In the last three months, insiders have sold 170,969 shares of company stock worth $5,222,709. Insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On StandardAero

Large investors have recently added to or reduced their stakes in the business. Comerica Bank bought a new stake in StandardAero during the 1st quarter worth approximately $26,000. Royal Bank of Canada lifted its holdings in shares of StandardAero by 418.8% in the first quarter. Royal Bank of Canada now owns 138,268 shares of the company’s stock valued at $3,682,000 after purchasing an additional 111,617 shares in the last quarter. AQR Capital Management LLC bought a new position in shares of StandardAero in the first quarter valued at approximately $521,000. Goldman Sachs Group Inc. purchased a new position in shares of StandardAero during the first quarter valued at approximately $6,821,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new position in shares of StandardAero during the first quarter valued at approximately $12,343,000.

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.