Strong Top-Line Growth
Q1 revenue of $1.63 billion, up 13.3% year-over-year organically; all three major end markets delivered double-digit growth.
Raised Full-Year Guidance
Increased 2026 guidance: revenue to $6.325B–$6.45B (midpoint +$38M), adjusted EBITDA to $875M–$905M (raised $5M at bottom end) and adjusted EPS to $1.40–$1.50 (up $0.05; ~22% YoY at midpoint). Free cash flow guidance reiterated at $270M–$300M.
Segment Performance — Engine Services
Engine Services revenue $1.45B, up 14.1% YoY; segment adjusted EBITDA $179M (up 3%) with management asserting that, excluding one-time/transitory items, segment EBITDA grew above 12% and margins would be >14%.
Segment Performance — Component Repair Services (CRS)
CRS revenue $180M (≈7% YoY increase); segment adjusted EBITDA $52M, up 11% YoY; CRS margin expanded 90 basis points to 29.2% driven by favorable mix and productivity.
Profitability and EPS
Adjusted EBITDA of $203M (up $5M YoY, +2.5%) and adjusted EPS of $0.33, up 14% YoY; net income $80M vs $63M prior year.
Operational Ramps and Program Milestones
LEAP revenues grew ~4x YoY with first LEAP 1A full overhaul delivered; LEAP and CFM56 DFW programs expected to reach profitability in H1 2026 as they move down the learning curve.
Capital Deployment and M&A
Repurchased $60M of shares in Q1 under $450M program and announced acquisition of Unified Turbines (adds hot-section capability for PT6A and PW100; expected mid-single-digit EBITDA on run-rate post synergies; fits within CRS guidance).
Balance Sheet and Liquidity
Net debt to adjusted EBITDA improved to 2.6x (from 3.1x prior year), remaining within the company's 2–3x target range, providing flexibility for capital allocation.
Military & Business Aviation Strength
Military & helicopter end market grew 10% YoY with recent awards and program wins (AE2100, AE1107, F110) and guidance for military raised to low double-digit growth; business aviation grew 20% YoY and guidance increased to high single-digit to low double-digit.