StandardAero, Inc. (SARO)
NYSE:SARO
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StandardAero, Inc.
(NYSE:SARO)
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Rating:64Neutral
Price Target:
$29.00
▲(6.81% Upside)
Action:ReiteratedDate: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
Consistent multi-year top-line expansion (organic revenue growth ~16% in 2025) indicates durable demand across engine and component services, supporting predictable shop-visit driven economics and recurring aftermarket revenue streams that can sustain cash generation and scale over 2–6 months and beyond.
Negative Factors
High absolute debt burden
Even with improved leverage ratios, a $~2.45B absolute debt load leaves the company exposed to macro or cyclical shocks. Interest and principal servicing could constrain capital allocation if revenue or margins slip, limiting strategic optionality across a 2–6 month horizon and beyond.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable revenue growth
Consistent multi-year top-line expansion (organic revenue growth ~16% in 2025) indicates durable demand across engine and component services, supporting predictable shop-visit driven economics and recurring aftermarket revenue streams that can sustain cash generation and scale over 2–6 months and beyond.
Read all positive factors
StandardAero, Inc. (SARO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.03B
Dividend YieldN/A
Average Volume (3M)4.03M
Price to Earnings (P/E)34.0
Beta (1Y)1.28
Revenue Growth17.79%
EPS Growth815.80%
CountryUS
Employees7,700
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.24
Shares Outstanding332,654,820
10 Day Avg. Volume3,176,638
30 Day Avg. Volume4,031,033
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)3.53
Price to Sales (P/S)1.55
P/FCF Ratio40.21
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit12.14
Enterprise Value/Ebitda15.05
Forecast
1Y Price Target
$35.91Price Target Upside32.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.3
Revenue Forecast (FY)$6.39B
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 Comp...
How the Company Makes Money
StandardAero makes money primarily by providing fee-based MRO services and related aftermarket support. Key revenue streams include: (1) Engine maintenance services: charging customers (airlines, business jet operators, and government/defense cust...
StandardAero, Inc. Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook: StandardAero delivered strong organic revenue and adjusted EBITDA growth in 2025, meaningful free cash flow generation, reduced leverage, and concrete progress on strategic growth platforms (LEAP, CF34, HTF7000) and CRS in‑sourcing. Management provided confident 2026 guidance (revenue, adjusted EBITDA, adjusted EPS, and higher free cash flow) while taking actions to improve margin quality (eliminating low‑margin pass‑through revenue and capturing more repairs in‑house). Near-term headwinds include supply‑chain part delays, a December fire at the Phoenix CRS facility, and the impact of the U.S. government shutdown, plus ramp dilution from LEAP/CFM56 that will pressure margins until industrialization/profitability is achieved. Overall, the positive operational and financial momentum and capital flexibility outweigh the identifiable short‑term challenges.Positive Updates
Record Revenue and Year-over-Year Growth
Full-year 2025 revenue grew ~15.8% to ~$5.35B in Engine Services and total company revenue up ~16% year-over-year; Q4 2025 revenue of $1.6B represented 13.5% growth versus Q4 2024 (all organic).
Negative Updates
Supply Chain Constraints and Part Availability Delays
Ongoing part availability delays continued to affect throughput and working capital; management noted supply chain improvements in Q4 but indicated constraints remain and full normalization could take longer than 12 months.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Year-over-Year Growth
Full-year 2025 revenue grew ~15.8% to ~$5.35B in Engine Services and total company revenue up ~16% year-over-year; Q4 2025 revenue of $1.6B represented 13.5% growth versus Q4 2024 (all organic).
Read all positive updates
Company Guidance
StandardAero guided 2026 revenue of $6.275–$6.425 billion (company growth 4%–6% at the midpoint, which reflects the planned elimination of $300–$400 million of low‑margin pass‑through material), Engine Services revenue of $5.50–$5.625 billion (≈4% y/y at midpoint; >10% y/y ex pass‑through) and Component Repair Services revenue of $775–$800 million (≈11% y/y at midpoint); total company adjusted EBITDA of $870–$905 million (~10% y/y at midpoint) implying an adjusted EBITDA margin of ~14% (≈+70 bps y/y), Engine Services adjusted EBITDA of $755–$780 million (≈+60 bps margin at midpoint) and CRS adjusted EBITDA of $220–$230 million with CRS margins of 28.5%–29.5%. Management expects LEAP and CFM56 DFW to reach profitability in early 2026, adjusted EPS of $1.35–$1.45 (vs. $1.19 in 2025, ~18% EPS growth at midpoint), free cash flow of $270–$300 million (≈36% growth at midpoint) with continued second‑half cash seasonality, capital expenditures of $100–$110 million, a net debt/adjusted EBITDA leverage of 2.4x (inside a 2–3x target range), and continued capital flexibility including a $450 million share repurchase authorization.StandardAero, Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| 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
Negative
27.15
Price Trends
28.69
Negative
28.64
Negative
28.34
Negative
Market Momentum
-0.57
Negative
50.16
Neutral
83.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SARO, the sentiment is Negative. The current price of 27.15 is above the 20-day moving average (MA) of 26.28, below the 50-day MA of 28.69, and below the 200-day MA of 28.34, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 83.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SARO.
StandardAero, Inc. Risk Analysis
StandardAero, Inc. disclosed 61 risk factors in its most recent earnings report. StandardAero, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We are not a "controlled company" within the meaning of the NYSE rules. However, we may continue to rely on exemptions from certain corporate governance requirements during a one-year transition period. Q4, 2025
2.
If we redeem or repurchase shares of our stock, we could be subject to an excise tax. Q4, 2025
3.
Period-end financial reporting and significant account balances Q4, 2025
StandardAero, Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.91B | 25.10 | 13.20% | 0.46% | 7.11% | 13.43% | |
64 Neutral | $9.03B | 33.96 | 10.88% | ― | 17.79% | 815.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $2.58B | 71.09 | 14.92% | ― | 6.19% | 52.10% | |
55 Neutral | $4.78B | -73.03 | -2.08% | ― | 8.63% | 72.72% |
* Industrials Sector Average
SARO
StandardAero, Inc.
27.15
2.10
8.38%
ATRO
Astronics
72.49
49.68
217.80%
MRCY
Mercury Systems
79.60
32.44
68.79%
MOG.A
Moog
312.03
147.82
90.02%
StandardAero, Inc. Corporate Events
Stock Buyback
StandardAero Completes Share Repurchase and Secondary Offering
Neutral
Jan 29, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.