StandardAero (SARO) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and earnings growth in 2024, with 15% revenue and 23% adjusted EBITDA growth, driven by strong demand in commercial aerospace and successful execution of strategic initiatives, including major investments in LEAP, CFM56, and CF34 programs.

• Completed IPO in October 2024, raising $1.7 billion and using $1.2 billion in net proceeds to pay down debt, significantly reducing leverage and resulting in over $130 million in annual interest savings.

• Expanded global reach and capabilities with new facilities, long-term contracts, and the acquisition and integration of Aero Turbine, positioning for continued growth in 2025.

• Engine aftermarket environment remains robust, with commercial aerospace market revenue up 33% in Q4 2024 year-over-year.

Financial highlights

• 2024 revenue grew 14.8% year-over-year to $5,237.2 million, with Q4 revenue up 21.8% to $1,409.6 million.

• Adjusted EBITDA increased 23.1% to $690.5 million for the year, with Q4 up 37.2% to $186.2 million; margin expanded to 13.2% for both Q4 and full year.

• Net income for 2024 was $11 million, impacted by $73 million in non-recurring costs; Q4 net loss of $14.1 million due to one-off transaction costs and investments.

• Free cash flow was negative $45 million for the year, reflecting one-time outflows and major platform investments; Q4 free cash flow was $57 million.

Outlook and guidance

• 2025 revenue guidance: $5.8–$5.95 billion, with double-digit growth in commercial aerospace and high single-digit growth in business aviation and military.

• Adjusted EBITDA guidance: $770–$790 million, with continued margin expansion in component repair services.

• Free cash flow expected to improve to $155–$175 million in 2025, as one-time costs subside and interest expense drops.

• Major investments of $90 million planned for LEAP, CFM, CF34, and Augusta facility expansion.