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olivLaw · US equity research

StandardAero, Inc. SARO

Aircraft Engines & Engine Parts · SIC 3724 · Vertical: Aircraft Engines & Engine Parts (SIC 3724)

25.71USD+1.90% · 1 dayClose 04 Nov 2026

StandardAero describes itself as the largest independent, pure-play provider of aerospace engine aftermarket services, serving commercial, military and business aviation. For the second quarter of 2026 it reported revenue growth of 4.6% to 1,599.7 million USD, and it raised its full-year 2026 guidance.

At the close of 04 Nov 2026, StandardAero, Inc. (SARO) stock was 25.71 USD (+1.90% on the day), with market capitalisation 8.5 bn USD, P/E 26.6 on diluted EPS of 0.97 USD over the last 12 months, beta 1.16, 52-week range 19.76–33.12 USD. Latest reported quarter (Q2 2026): revenue of 1.6 bn USD (+4.6% YoY), net income of 97.3 m USD (+43.7% YoY), diluted EPS 0.29 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
8.5 bn USD
shares as of 31 Jul 2026
P/E (TTM)
26.6
Diluted EPS TTM 0.97 · TTM to 30 Jun 2026
E/P (TTM)
3.75%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.16
Volatility (1y) 37%
52-week range
19.7633.12

Price history

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Technical reading

RSI (14)
75.6
overbought (≥ 70)
Bollinger (20, 2)
18.49 – 25.55
above the upper band · %B 1.02 · band width 32.0%
SMA 50 / 200
22.64 / 26.51
mixed trend
MACD (12, 26, 9)
0.71 / 0.13
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+22.2%−1.1%+23.3 pp—
3 months−17.1%−0.5%−16.6 pp—
6 months−2.1%+4.4%−6.5 pp—
Year to date−10.4%+12.3%−22.7 pp—
1 year−6.5%+13.5%−20.1 pp+13.3%
3 yearsunavailable+76.4%unavailable+143.5%
5 yearsunavailable+63.7%unavailable—
Max drawdown (1y)
−40.3%
27 Jan 2026 → 14 Oct 2026
Max drawdown (5y)
−40.3%
27 Jan 2026 → 14 Oct 2026
Compound annual growth (5y)
unavailable
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
1.6 bn USD
+4.6% YoY
Net income
97.3 m USD
+43.7% YoY
Diluted EPS
0.29
+45.0% YoY
net / operating
6.1% / 10.5%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue1.2 bn1.4 bn1.4 bn1.5 bn1.5 bn1.6 bn1.6 bn1.6 bn
Cost of revenue1.1 bn1.2 bn1.2 bn1.3 bn1.3 bn1.4 bn1.4 bn1.3 bn
SG&A62.9 m82.3 m64.5 m76.0 m60.9 m46.3 m71.9 m75.6 m
Operating income98.0 m94.6 m128.9 m135.6 m137.3 m149.2 m143.1 m168.5 m
Depreciation & amortisation47.1 m47.1 m48.7 m48.5 m ≈48.1 m ≈48.3 m46.5 m47.0 m ≈
Interest expense79.9 m47.0 m43.8 m43.8 m44.6 m42.0 m38.2 m41.3 m
Pre-tax income16.6 m18.6 m85.1 m91.7 m92.8 m107.2 m104.9 m127.2 m
Income tax211.0 k32.7 m22.2 m24.0 m24.7 m28.6 m25.0 m29.9 m
Net income16.4 m-14.1 m62.9 m67.7 m68.1 m78.6 m79.9 m97.3 m
Diluted EPS0.06-0.04 ≈0.190.200.200.24 ≈0.240.29
Operating cash flow-13.9 m ≈108.3 m-24.0 m2.9 m ≈14.8 m ≈323.0 m-119.6 m72.3 m ≈
Capex25.3 m ≈32.5 m25.3 m21.9 m ≈19.5 m ≈15.7 m15.6 m21.1 m ≈
Share repurchases——————60.1 m40.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 0 percentile of its own 7-quarter history (min 29.5, median 49.8, max 428.1; quarters with earnings only).

Fiscal years

Fiscal year2022202320242025
Revenue4.2 bn4.6 bn5.2 bn6.1 bn
Revenue YoYunavailable+9.9%+14.8%+15.8%
Net income-21.0 m-35.1 m11.0 m277.4 m
Net income YoYunavailableunavailableunavailable+2,427.9%
Diluted EPS-0.08-0.130.040.83
Diluted EPS YoYunavailableunavailableunavailable+1,975.0%
net %-0.5%-0.8%0.2%4.6%
Free cash flow-14.0 m12.8 m-26.6 m234.3 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
289.7 m USD
Financial debt
2.2 bn USD
Net debt
1.9 bn USD
Equity
2.7 bn USD
Total assets
6.6 bn USD
Debt / equity
0.83x
Current ratio
2.20x
ROE
11.0%
ROA
4.3%
FCF margin
3.9%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
4.6 bn
2024
5.2 bn
2025
6.1 bn

SEC (XBRL)· 26 Feb 2026verified

Cost of revenue
2023
3.9 bn
2024
4.5 bn
2025
5.2 bn

SEC (XBRL)· 26 Feb 2026verified

Gross profit
2023
635.3 m ≈
2024
754.1 m ≈
2025
897.5 m ≈

SEC (XBRL)· 26 Feb 2026derived

SG&A
2023
202.8 m
2024
254.1 m
2025
247.7 m

SEC (XBRL)· 26 Feb 2026verified

Operating income
2023
337.4 m
2024
403.2 m
2025
551.1 m

SEC (XBRL)· 26 Feb 2026verified

Depreciation & amortisation
2023
197.1 m
2024
187.1 m
2025
193.7 m

SEC (XBRL)· 26 Feb 2026verified

EBITDA
2023
534.5 m ≈
2024
590.3 m ≈
2025
744.7 m ≈

SEC (XBRL)· 26 Feb 2026derived

Interest expense
2023
309.6 m
2024
282.5 m
2025
174.2 m

SEC (XBRL)· 26 Feb 2026verified

Pre-tax income
2023
5.1 m
2024
81.8 m
2025
376.9 m

SEC (XBRL)· 26 Feb 2026verified

Income tax
2023
40.2 m
2024
70.8 m
2025
99.4 m

SEC (XBRL)· 26 Feb 2026verified

Net income
2023
-35.1 m
2024
11.0 m
2025
277.4 m

SEC (XBRL)· 26 Feb 2026verified

Diluted EPS
2023
-0.13
2024
0.04
2025
0.83

SEC (XBRL)· 26 Feb 2026verified

Weighted average diluted shares
2023
275.2 m
2024
289.8 m
2025
334.3 m

SEC (XBRL)· 26 Feb 2026verified

Balance sheet · USD

Cash
2023
58.0 m
2024
102.6 m
2025
289.7 m

SEC (XBRL)· 26 Feb 2026verified

Receivables
2023
518.3 m
2024
580.7 m
2025
654.4 m

SEC (XBRL)· 26 Feb 2026verified

Inventories
2023
698.8 m
2024
847.0 m
2025
827.7 m

SEC (XBRL)· 26 Feb 2026verified

Current assets
2023
2.1 bn
2024
2.5 bn
2025
2.9 bn

SEC (XBRL)· 26 Feb 2026verified

Property, plant & equipment, net
2023
522.2 m
2024
568.6 m
2025
580.0 m

SEC (XBRL)· 26 Feb 2026verified

Goodwill
2023
1.6 bn
2024
1.7 bn
2025
1.7 bn

SEC (XBRL)· 26 Feb 2026verified

Intangibles (excl. goodwill)
2023
1.3 bn
2024
1.3 bn
2025
1.2 bn

SEC (XBRL)· 26 Feb 2026verified

Total assets
2023
5.8 bn
2024
6.2 bn
2025
6.6 bn

SEC (XBRL)· 26 Feb 2026verified

Accounts payable
2023
468.6 m
2024
645.7 m
2025
679.8 m

SEC (XBRL)· 26 Feb 2026verified

Short-term debt
2023
26.7 m
2024
23.4 m
2025
23.4 m

SEC (XBRL)· 26 Feb 2026verified

Long-term debt
2023
3.2 bn
2024
2.2 bn
2025
2.2 bn

SEC (XBRL)· 26 Feb 2026verified

Current liabilities
2023
1.1 bn
2024
1.3 bn
2025
1.3 bn

SEC (XBRL)· 26 Feb 2026verified

Total liabilities
2023
4.6 bn
2024
3.8 bn
2025
3.9 bn

SEC (XBRL)· 26 Feb 2026verified

Equity
2023
1.1 bn †
2024
2.4 bn †
2025
2.7 bn †

SEC (XBRL)· 26 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
67.9 m
2024
76.3 m
2025
316.7 m

SEC (XBRL)· 26 Feb 2026verified

Capex
2023
55.1 m
2024
102.9 m
2025
82.4 m

SEC (XBRL)· 26 Feb 2026verified

Free cash flow
2023
12.8 m ≈
2024
-26.6 m ≈
2025
234.3 m ≈

SEC (XBRL)· 26 Feb 2026derived

Investing cash flow
2023
-112.9 m
2024
-235.4 m
2025
-106.4 m

SEC (XBRL)· 26 Feb 2026verified

Financing cash flow
2023
-14.7 m
2024
203.8 m
2025
-25.5 m

SEC (XBRL)· 26 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
15.8%
computed by olivLawFY 2025
Revenue CAGR 3Y
13.5%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
36.7%
computed by olivLawFY 2025
Net income growth (YoY)
2,427.9%
computed by olivLawFY 2025
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
1,975.0%
computed by olivLawFY 2025
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
15.0%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
12.5%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
9.5%
computed by olivLawTTM to 30 Jun 2026
Net margin
5.1%
computed by olivLawTTM to 30 Jun 2026
FCF margin
3.5%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
12.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
4.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
9.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROCE
11.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
2.1 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
2.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Debt / equity
0.8x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
3.6x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
2.1x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
1.6x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
290.6 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
71.8 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
218.8 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
67.5%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
36.9%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
43 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
55 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
46 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
52 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
8.5 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
10.7 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
26.3x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
26.6x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
3.8%
computed by olivLawTTM to 30 Jun 2026
P/B
3.1x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
1.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
13.5x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBIT
17.8x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/Sales
1.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
38.9x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
2.6%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
2.51
computed by olivLawbalance sheet at 30 Jun 2026

Valuation

olivLaw classification

Neutral profile

Score: 42 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

25.71 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 8.5 bn USD

Key indicators

Market capitalisation
8.5 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
26.6x
computed by olivLawTTM to 30 Jun 2026
P/B
3.1x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
13.5x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROE
12.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
5.1%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
15.8%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 31 Jul 2026
Source: SEC (XBRL)published 07 Aug 2026
verified 442derived 38

Score by group

  • Balance sheet30
  • Growth100
  • Valuation52
  • Quality20

Estimated value range

Low
12.45
USD per share
Mid
24.83
USD per share
High
29.84
USD per share
Price: 25.71 USD
The price is within the range
Potential to the central value: -3.4% (value / price − 1)
Margin of safety: -3.5% (1 − price / value)
Agreement between methods: medium · 3 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 9.29 – 32.83 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)12.45 – 24.85 (Mid 17.05)
    WACC 8.3% · starting FCFF 343.3 m USD · terminal value share of EV 77%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 28.7%
  • Peers: EV/EBITDA9.29 – 32.83 (Mid 24.83)
    5 companies used · median multiple 13.1x · quartiles 6.6x – 16.5x
    HEI, HON, RTX, SIF, TATT
  • Peers: P/E27.71 – 29.84 (Mid 28.59)
    3 companies used · median multiple 29.6x · quartiles 28.7x – 30.9x
    RTX, SIF, TATT
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Aircraft Engines & Engine Parts (SIC 3724)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 42/100

FactorValueScoreWeight used
ROIC · Quality9.3%0 (vs peers)13%
Net margin · Quality5.1%20 (vs peers)8%
FCF conversion · Quality67.5%54 (on a fixed band)8%
Revenue CAGR 3Y · Growth13.5%100 (on a fixed band)10%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet2.7x0 (vs peers)13%
Interest coverage · Balance sheet3.6x32 (on a fixed band)8%
Current ratio · Balance sheet2.1x100 (on a fixed band)5%
P/E (TTM) · Valuation26.6x80 (vs peers)13%
EV/EBITDA · Valuation13.5x40 (vs peers)13%
FCF yield · Valuation2.6%32 (on a fixed band)10%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet30/100 · 3/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality20/100 · 3/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation52/100 · 3/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

StandardAero, Inc. (SARO). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 6.1 bn USD in 2025; YoY growth 15.8%; net margin 5.1%; ROE 12.3%; net debt/EBITDA 2.7x.

The estimated value range is 12.45–29.84 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 24.83 USD, the price of 25.71 USD leaves a potential of -3.4% (value / price − 1) and a margin of safety of -3.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 42/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Revenue CAGR 3Y: 13.5%
  • Current ratio: 2.1x
  • P/E (TTM): 26.6x

What contradicts it

  • ROIC: 9.3%
  • Net margin: 5.1%
  • Net debt / EBITDA: 2.7x

Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Aircraft Engines & Engine Parts (SIC 3724) · same industry (4-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
26.6x
vertical median 29.6x
below median (−10.1%)
EV/EBITDA
13.5x
vertical median 13.1x
at median
P/S
1.3x
vertical median 2.2x
below median (−37.6%)
P/B
3.1x
vertical median 2.9x
above median (+8.3%)
ROE
12.3%
vertical median 12.6%
at median
Net margin
5.1%
vertical median 9.4%
below median (−45.8%)
EBIT margin
9.5%
vertical median 11.8%
below median (−19.7%)
Revenue YoY
15.8%
vertical median 9.7%
above median (+61.8%)
Net debt/EBITDA
2.7x
vertical median -0.2x
above median
Dividend yield
—
vertical median 1.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
RTXRtx Corporation267.8 bn32.212.6%8.8%+9.7%+13% / +144%
HONHoneywell International Inc72.5 bn10.936.0%21.0%+7.8%+13% / +18%
HEIHeico Corporation9.1 bn56.118.7%16.4%+16.3%+7% / +97%
SAROStandardAero, Inc.8.5 bn26.612.3%5.1%+15.8%−7% / unavailable
TATTTat Technologies Ltd494.3 m27.811.7%9.4%+17.0%−1% / +293%
SIFSIFCO Industries, Inc.118.5 m29.610.3%4.0%+6.5%+201% / +452%

1- and 3-year price returns: for SARO from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
16.80
Total return -35% · Per year -35%
29.59
Total return 15% · Per year 15%
44.41
Total return 73% · Per year 73%
3 years
19.38
Total return -25% · Per year -9%
38.09
Total return 48% · Per year 14%
62.32
Total return 142% · Per year 34%
5 years
22.35
Total return -13% · Per year -3%
49.04
Total return 91% · Per year 14%
87.46
Total return 240% · Per year 28%
What moves the 3-year price the most
  • Exit P/E± 9.52
  • Net margin± 6.67
  • Annual revenue growth± 5.04
  • Annual dilution± 0.56

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

StandardAero describes itself as the largest independent, pure-play provider of aerospace engine aftermarket services, serving commercial, military and business aviation. For the second quarter of 2026 it reported revenue growth of 4.6% to 1,599.7 million USD, and it raised its full-year 2026 guidance.

SWOT

Strengths

  • The company presents itself as an independent pure-play leader, with exclusive or semi-exclusive OEM licenses on several platforms and a large share of revenue under long-term contracts.
  • Diversification between engine services and component repair creates synergies and attractive margins in part of the business.
  • Recent results show higher adjusted margins and positive free cash flow, suggesting solid operational execution.

Weaknesses

  • Dependence on a few large OEM customers and a few parts suppliers exposes the company to concentration risk.
  • Supply chain delays have affected throughput and working capital in the past.
  • The component repair segment posted a lower margin in the second quarter because of an unfavorable mix.

Opportunities

  • An aging engine fleet and heavy maintenance on engines delivered in the last decade could support long-term demand.
  • Expansion in components, through acquisitions and new OEM agreements, could add volume and improve contract economics.
  • Growing demand in business aviation and defense could offset pressure in other markets.

Threats

  • A drop in air traffic or an airline crisis could reduce demand for overhauls and raise the risk of uncollected receivables.
  • Changes in defense budgets or reduced outsourcing could weigh on the military business.
  • Tariffs and supply chain disruptions could raise costs and delay deliveries.

Risks

  • Dependence on large customershigh

    A small number of OEM customers generate a large share of revenue, and some can terminate certain contracts without penalty.

  • Dependence on parts suppliershigh

    OEM authorizations often require purchasing parts from the OEMs or their designated distributors, so losing a key supplier could seriously disrupt production.

  • Military budgetsmedium

    Military demand depends on defense budgets and outsourcing policies, and government contracts can be modified or terminated.

  • Fuel prices and airline healthmedium

    Higher fuel prices can pressure aircraft operators, who may defer or reduce maintenance work.

  • Regulation and tariffslow

    Changes in aviation regulation or new trade tariffs could raise compliance costs and shift demand.

Investment thesis

What would need to be true (bull case)

  • If the rise in engine maintenance demand continues and margins keep improving, the company could exceed its 2026 guidance.
  • The expanded agreement with a key OEM partner could bring better long-term economics across several platforms.
  • Positive free cash flow in the second quarter suggests that supply chain initiatives could support cash conversion.

What would break the thesis

  • If tariffs or supply chain disruptions persist, costs could rise faster than prices passed on to customers.
  • Concentration of customers and suppliers means that losing one partner could significantly affect results.
  • A decline in defense budgets or airline activity could slow growth in the military and business segments.

What to watch

  • Evolution of 2026 revenue and Adjusted EBITDA guidancenext 10-Q
  • Margin of the Component Repair Services segment after the Unified Turbines acquisitionQ3 2026
  • Impact of the expanded OEM agreement on margins for the LEAP and CFM56 platforms2027
  • Effects of Section 301 tariffs and related litigation on costsnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

StandardAero provides maintenance, repair and overhaul of engines, component repair, on-wing and field service support, asset management and engineering solutions for fixed and rotary wing aircraft. The company connects engine original equipment manufacturers (OEMs) with aircraft operators and holds exclusive or semi-exclusive licenses on several platforms. According to its 2025 annual report, about 80% of revenue comes from customers with long-term agreements, and it serves about 5,000 customers globally.

Segments

Engine Services

The Engine Services segment covers maintenance, repair and overhaul of gas turbine engines and auxiliary power units for commercial, military, helicopter and business aviation customers. In the second quarter of 2026 it generated 1,405.1 million USD of revenue, up 4.0% year-over-year, making it the main driver of the company.

Component Repair Services

The Component Repair Services segment repairs engine piece parts and accessories for commercial, military and other markets and sometimes manufactures new engine parts. Revenue rose 9.2% in the second quarter of 2026 to 194.6 million USD, and the company closed the acquisition of Unified Turbines to expand this segment.

Market context

Demand for engine aftermarket services depends on the size of the installed base, its age and its utilization. The company notes that the installed base is aging because supply chain issues delay new aircraft deliveries, and engines delivered in the 2010s are entering prime maintenance periods. The military share was 17.8% of revenue in 2025, and defense budgets and outsourcing policies can change that share.

Trends

  • Aging fleet and engine maintenancetailwind

    Older aircraft and engines remain in service longer, which raises demand for overhauls. If delays in new aircraft deliveries persist, demand for these services could stay high.

  • Defense demandmixed

    Geopolitical tensions keep defense investment high, supporting the military and helicopter business. Defense budgets may shift, however, and outsourcing of maintenance to the civil industrial base is not assured.

  • Supply chains and partsheadwind

    Delays in parts and materials have affected repair throughput across end markets. The company says its supply chain initiatives are beginning to show results, but dependence on a few OEM suppliers remains.

  • Tariffsheadwind

    US tariffs could disrupt trade and raise costs. The company says it aims to pass cost increases to customers, but timing delays may affect margins, and litigation over new tariffs remains unresolved.

Competitive position

The engine maintenance services market is highly competitive, with competition based on quality, on-time delivery and price. Main competitors include OEM service divisions, other independent aftermarket providers, in-house maintenance divisions of airlines and militaries, and engine component repair specialists.

  • OEM service divisions

    Direct competition on the same platforms, though the company holds licenses from these manufacturers.

  • Other independent aftermarket service providers

    Competitors for repair work that can put pressure on pricing on certain platforms.

  • In-house maintenance divisions of airlines and militaries

    In some cases customers perform the work themselves, which limits outsourced volume.

  • Engine component repair specialists

    Direct competitors in the Component Repair Services segment.

News & filings

In the press

The latest news item in our archive is from 17 Sept 2026; the newest SEC filing is from 28 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / StandardAero, Inc. · 26 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / StandardAero, Inc. · 07 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / StandardAero, Inc. · 06 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.