StandardAero (SARO) Q4 2025 earnings summary

Executive summary

• Achieved record results in 2025, with revenue up 16% and Adjusted EBITDA up 17% year-over-year, driven by robust demand, operational execution, and strong performance across all end markets.

• Net income surged by 2,000% year-over-year to $277 million, supported by operating leverage, improved mix, and productivity gains.

• Free Cash Flow reached $209 million for the year, up $254 million year-over-year, with over $300 million generated in the second half, reflecting strong cash management and seasonality.

• Significant progress on strategic growth platforms, including ramp in LEAP engine work, expansion of key facilities, and successful integration of acquisitions.

• Balance sheet strengthened with leverage ratio reduced to 2.4x, providing flexibility for future investments and share repurchases.

Financial highlights

• FY 2025 revenue: $6,063 million (+16% YoY); Q4 revenue: $1,600 million (+14% YoY).

• Adjusted EBITDA for FY 2025: $808 million (+17% YoY); margin expanded to 13.3%.

• Net income for 2025 was $277 million; Adjusted Net Income was $398 million; Adjusted EPS was $1.19.

• Free Cash Flow for FY 2025 was $209 million, with 75% FCF conversion on net income; Q4 Free Cash Flow was $308 million.

• Net debt to Adjusted EBITDA improved to 2.4x from 3.1x in FY 2024.

Outlook and guidance

• FY 2026 revenue guidance: $6,275–$6,425 million (4–6% growth), with Engine Services $5,500–$5,625 million and Component Repair Services $775–$800 million.

• Adjusted EBITDA expected at $870–$905 million (10% growth), margin improvement to ~14%.

• Adjusted EPS guidance: $1.35–$1.45 (18% growth); Free Cash Flow expected at $270–$300 million (>30% growth).

• Commercial aerospace revenue projected to grow low double-digit to mid-teens; military and business aviation high single-digit growth.

• Strategic focus on organic growth, M&A, and share repurchases.