StandardAero, Inc. (SARO) AI Stock Analysis

• Market Cap: $10.25B
• Dividend Yield: N/A
• Average Volume (3M): 5.01M
• Price to Earnings (P/E): 37.1
• Beta (1Y): 1.26
• Revenue Growth: 17.79%
• EPS Growth: 815.80%
• Country: US
• Employees: 7,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.24
• Shares Outstanding: 332,654,820
• 10 Day Avg. Volume: 2,664,617
• 30 Day Avg. Volume: 5,009,814
• PEG Ratio: 0.02
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 40.21
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 13.51
• Enterprise Value/Ebitda: 16.76
• 1Y Price Target: $36.80
• Price Target Upside: 19.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.18
• Revenue Forecast (FY): $6.35B

• Rating: 64 Neutral
• Price Target: $33.00 ▲(7.14% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by improving fundamentals and a positive 2026 outlook (higher EBITDA/EPS/FCF with margin improvement and controlled leverage). This is tempered by a rich valuation (high P/E with no dividend yield) and only moderately supportive technicals with mixed momentum signals.

Positive Factors

Durable revenue growth across engine platforms

Multi-year organic growth across CF34, HTF7000, LEAP and CFM56 indicates sustained aftermarket demand and diversified platform exposure. That breadth reduces single-platform concentration risk and supports predictable shop visits, creating a durable revenue base over the next 2–6 months as ramps and expansions scale.

Marked improvement in cash generation

Sharp free cash flow recovery and improved working capital conversion enhance financial resilience, funding capex and strategic investments without immediate need for external financing. Sustained FCF helps support deleveraging, buybacks, and reinvestment provided supply‑chain volatility remains manageable.

Leverage reduction and capital flexibility

Moving inside the stated 2.0–3.0x net debt/EBITDA target and a sizable buyback authorization signal stronger balance sheet trajectory and management discipline. Lower leverage increases strategic optionality for M&A, facility investments, and absorbing ramp costs while supporting sustainable capital returns.

Negative Factors

High absolute debt burden

Even with improved leverage ratios, a large absolute debt stock constrains liquidity and raises refinancing and covenant risks during downturns. This reduces buffer for operational shocks, limits aggressive M&A or capex without careful funding, and magnifies sensitivity to cash‑flow volatility.

Ongoing supply‑chain part delays

Persistent part shortages hinder shop throughput and create working‑capital swings, undermining margin consistency and predictable FCF. For a service business reliant on timely repairs, extended normalization timelines can delay ramping new platforms and reduce utilization of expanded facilities.

Ramp-related margin dilution and low gross margins

Early phases of large platform ramps booked at low/zero margins compress reported profitability until industrialization is achieved. Coupled with structurally low gross margins, this limits margin expansion potential and makes earnings sensitive to ramp timing, contract terms, and operational execution.

StandardAero, Inc. Business Overview & Revenue Model

Company Description

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

StandardAero generates revenue primarily through its comprehensive MRO services for aircraft engines and airframes. Key revenue streams include engine overhauls, routine maintenance, and repair services, as well as parts sales and component repairs. The company also benefits from long-term service agreements with various airline operators and military contracts, providing a steady income source. Strategic partnerships with aircraft manufacturers and leasing companies further enhance StandardAero's market position and contribute to its earnings by ensuring a strong client base and consistent business opportunities.

StandardAero, Inc. Financial Statement Overview

Summary

Strong operational inflection with steady multi-year revenue growth and a clear return to profitability in 2024–2025, plus improved leverage trends. Offsetting this are relatively thin margins and historically inconsistent cash generation (despite a strong 2025 free-cash-flow step-up).

Income Statement

Revenue has grown steadily from 2022 to 2025 (annual growth of ~19% in 2022, ~10% in 2023, ~15% in 2024, and ~3% in 2025), showing durable demand. Profitability has improved meaningfully: net income moved from losses in 2022–2023 to positive results in 2024 and a much stronger 2025, with net margin expanding to ~4.6% in 2025. However, gross margin remains relatively low for the period (~13%–15%), and the EBITDA margin fell in 2025 versus 2024, suggesting some cost pressure despite higher earnings.

Balance Sheet

Leverage is still a key consideration, but the trajectory has improved. Debt to equity has declined materially from ~2.8–2.9x in 2022–2023 to ~1.0x in 2024 and ~0.9x in 2025, alongside a large increase in equity. Returns on equity have also improved from negative in 2022–2023 to ~10.4% in 2025. The main weakness is that absolute debt remains high (about $2.45B in 2025), which can limit flexibility if operating conditions soften.

Cash Flow

Cash generation improved sharply in 2025: operating cash flow rose to ~$317M and free cash flow turned solidly positive (~$234M) after negative free cash flow in 2022–2024. Free cash flow in 2025 covered a meaningful portion of earnings (about 74%), which is a positive quality signal. That said, cash flow was weak and inconsistent in prior years (including negative free cash flow), and operating cash flow remains modest relative to the business scale, indicating ongoing sensitivity to working-capital swings and/or investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	6.06B	5.24B	4.56B	4.15B
Gross Profit	922.06M	754.16M	635.28M	545.68M
EBITDA	754.59M	551.34M	511.87M	459.14M
Net Income	277.42M	10.97M	-35.06M	-21.00M
Balance Sheet
Total Assets	6.56B	6.21B	5.76B	5.73B
Cash, Cash Equivalents and Short-Term Investments	289.72M	102.58M	57.98M	120.06M
Total Debt	2.45B	2.41B	3.38B	3.37B
Total Liabilities	3.89B	3.84B	4.61B	4.53B
Stockholders Equity	2.67B	2.37B	1.15B	1.20B
Cash Flow
Free Cash Flow	234.30M	-46.85M	-17.42M	-16.95M
Operating Cash Flow	316.70M	76.33M	67.89M	27.26M
Investing Cash Flow	-106.40M	-235.45M	-112.86M	-60.75M
Financing Cash Flow	-25.51M	203.76M	-14.69M	-25.78M

StandardAero, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SARO, the sentiment is Positive. The current price of 30.8 is below the 20-day moving average (MA) of 30.85, above the 50-day MA of 30.68, and above the 200-day MA of 28.72, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 39.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SARO.

StandardAero, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	74 Outperform	$10.73B	41.73	13.33%	0.46%	7.11%	13.43%
SARO	64 Neutral	$10.25B	37.12	11.01%	―	17.79%	815.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATRO	63 Neutral	$2.86B	111.43	14.82%	―	6.19%	52.10%
MRCY	55 Neutral	$5.34B	-172.27	-2.08%	―	8.63%	72.72%

StandardAero, Inc. Corporate Events

StandardAero Completes Share Repurchase and Secondary Offering

On January 29, 2026, StandardAero, Inc. completed a repurchase of 1,637,465 shares of its common stock from a GIC-affiliated shareholder in a private transaction priced at $30.535 per share under a stock repurchase program approved by its board in December 2025, with the repurchased shares retired and no longer outstanding. On the same date, the company’s shareholders affiliated with The Carlyle Group and GIC completed an underwritten secondary public offering of 57,500,000 shares, including the full exercise of underwriters’ option, at $31.00 per share; StandardAero received no proceeds from this sale, which primarily shifts ownership among existing and new investors while modestly reducing the company’s share count through the concurrent buyback.

The most recent analyst rating on (SARO) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on StandardAero, Inc. stock, see the SARO Stock Forecast page.

StandardAero Announces $450 Million Stock Buyback Plan

On December 9, 2025, StandardAero, Inc. announced that its Board of Directors approved a stock repurchase program, allowing the company to buy back up to $450 million of its common stock. This initiative aims to enhance shareholder value and offers flexibility as repurchases will depend on market conditions and corporate needs, with the possibility of modification or discontinuation at the company’s discretion.

The most recent analyst rating on (SARO) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on StandardAero, Inc. stock, see the SARO Stock Forecast page.