StandardAero (SARO) Q1 2026 earnings summary

Executive summary

• Revenue grew 13.3% year-over-year to $1.63 billion in Q1 2026, with double-digit growth across all major end markets including commercial aerospace, business aviation, military, and helicopter.

• Net income increased 27% year-over-year to $79.9 million, with net income margin improving to 4.9%.

• Adjusted EBITDA rose 2.5% to $203.2 million, with margin declining to 12.5% due to mix and ramp in LEAP and CFM56 DFW programs.

• Announced $60 million in share repurchases and the acquisition of Unified Turbines to enhance component repair capabilities.

• Demand remains robust across all end markets, with no signs of softening despite global uncertainties and elevated jet fuel prices.

Financial highlights

• Q1 2026 revenue: $1,626.9 million, up $191.3 million or 13.3% year-over-year.

• Net income: $79.9 million (4.9% of revenue), up from $62.9 million (4.4%).

• Adjusted EBITDA: $203.2 million, up from $198.2 million; margin declined to 12.5% from 13.8%.

• Free cash flow was negative at $(134) million, reflecting typical Q1 seasonality and working capital investment for growth platforms.

• Diluted GAAP EPS was $0.24, adjusted diluted EPS was $0.33, up from $0.29.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $6,325–$6,450 million, adjusted EBITDA to $875–$905 million, and adjusted EPS to $1.40–$1.50.

• Free cash flow guidance reiterated at $270–$300 million.

• End market revenue growth assumptions: commercial aerospace low double-digit to mid-teens, military & helicopter low double-digit, business aviation high single to low double-digit.