Start here if you're new
what it is
StandardAero fixes and maintains aircraft engines and parts after the original manufacturer sells the plane.
how it gets paid
Last year Standardaero made $6.1B in revenue. Commercial Aerospace was the main engine at $3.54B, or 58% of sales.
why it's growing
Revenue grew 15.8% last year. What's more, strong demand for maintenance, repair, and operations services suggests the backdrop will remain favorable.
what just happened
The quarter showed scale, with revenue hitting $4.5B, but the most recent earnings print still came in at $0.20 versus a $0.26 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
36.0x trailing p/e — you're paying up for this one
7.0% return on capital — nothing to write home about
$1.25 fy2027 eps est
$7B fy2029 rev est
xvary composite: 55/100 — below average
What they do
StandardAero fixes and maintains aircraft engines and parts after the original manufacturer sells the plane.
Aircraft repair is a trust business. If your engine is grounded, you do not shop for vibes. You shop for certified work, available parts, and fast turnaround. StandardAero runs 49 facilities with 7,500 employees, and Engine Services was 89% of 2024 revenue. Aftermarket services (repairs after the original sale) → recurring maintenance work → so what: you get paid again after the aircraft is already in service.
How they make money
$6.1B
annual revenue · their business grew +15.8% last year
Commercial Aerospace
$3.54B
Business Aviation
$1.22B
Military & Helicopter
$1.10B
Other
$0.24B
The products that matter
engine maintenance and overhaul
Engine Services
$3.8B · 62% of shown segment revenue
it generated $3.8B last year and grew 15.3%. This is still the center of gravity, so you want steady shop demand and clean turnaround times.
largest segment
component repair and parts work
Component Repair Services
$2.3B · +19.6% growth
this $2.3B segment grew 19.6% and management guided to 28.5–29.5% margin in 2026. Smaller than engines, better for the profit story.
margin driver
Key numbers
36.0x
trailing p/e
Price-to-earnings → how much investors pay for each dollar of profit → so what: SARO is priced like a better business than its 7.0% return on capital suggests.
14.5%
operating margin
Operating margin → profit left after running the business → so what: the company is profitable, but not so profitable that 36x earnings feels cheap.
$2.3B
long-term debt
Debt → money the company owes → so what: leverage is fine when aircraft keep flying, and less fun when demand stalls.
7.0%
return on capital
Return on capital → profit earned on money invested in the business → so what: this is decent, not premium, and the stock is priced for premium.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- long-term debt $2.3B (18% of capital)
- net profit margin 9.6% — keeps 10 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SARO right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The quarter showed scale, with revenue hitting $4.5B, but the most recent earnings print still came in at $0.20 versus a $0.26 estimate.
EDGAR shows the latest quarter at $4.5B of revenue, up 198% vs. prior year, and EPS of $0.59, up 195%. Consensus data also flags the last earnings release as a miss at $0.20 versus $0.26, which is the kind of reporting mismatch that raises your homework load.
$4.5B
revenue
$0.59
eps
198%
revenue growth
the number that mattered
$4.5B matters because scale is the core bull case here: big installed fleets create repeat repair work, and that revenue base keeps widening.
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this week, we are bringing standardaero into the institutional data.the company provides aerospace engines and components aftermarket services for the commercial, military, and business aviation markets. fortunately for standardaero, robust fundamentals across all three categories are leading to strong demand for aftermarket services. its engine services unit repairs turbines made by many of the world's biggest original equipment manufacturers (oems), including rolls-royce, pratt & whitney, and safran. concurrently, the component repair services division helps customers reduce aircraft downtime and improve engine performance. The company likely closed 2025 on a strong note.
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strength across both of standardaero's divisions during much of the latest year ended encouraged management to raise its final outlook for the full 52-week period. (note that december-interim results were due out after we went to press with this report.) management's guidance included revenues of $5.97 billion to $6.03 billion, adjusted ebitda of $795 million to $815 million, and free cash flow of $170 million to $190 million.what's more, strong demand for maintenance, repair, and operations services suggests the backdrop will remain favorable. specifically, the growing preference for leading edge aviation propulsion (leap) engines is becoming a key driver for the company's commercial business. expansion projects at facilities in dallas/forth worth, augusta (georgia), and winnipeg (canada) should boost standardaero's servicing footprint. as for the components repair business, the rise in the number of oem-authorized leap repairs, as well as the deepening portfolio of over 20,000 licensed component repairs, ought to help. Our initial outlook suggests standardaero shares lack long-term appeal. early in 2026, private-equity firms the carlyle group and gic announced the latest in a string of underwritten secondary offerings (selling 50 million shares at $31 each). such actions are liable to continue, as both private-equity firms appear ready to trim their positions.
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this raises the likelihood of elevated volatility.
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dominic b.
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silva february 27, 2026
source: company earnings report, 2026
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What could go wrong
the top risk is parts availability and skilled-labor bottlenecks in aircraft maintenance.
high
Parts and labor bottlenecks
This business only gets paid when work gets done. If labor is tight or parts arrive late, turnaround times stretch and revenue recognition slips.
That risk sits on top of both reported service lines — $3.8B of engine services and $2.3B of component repair.
med
Margin guide misses
The premium setup depends on Component Repair Services landing near the 28.5–29.5% margin guide. If it does not, the profit-mix story weakens fast.
This is the segment that grew 19.6% last year. If growth stays strong but margins do not, you get revenue without the payoff.
med
Secondary offering overhang
Affiliates of Carlyle and GIC are selling 50 million shares. That is a lot of paper hitting the market at once.
Management's planned $50M buyback helps the optics, but it does not erase the near-term supply increase.
These risks sit on top of $6.1B of reported segment revenue and a stock already trading above the $28 midpoint target shown on this page.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
CRS margin guide
28.5–29.5% for 2026 is the cleanest proof point that the smaller segment is becoming the better business.
event
next earnings call
Scheduled for May 11, 2026. You want an update on segment margins, backlog health, and whether the Q4 EPS miss was noise.
trend
double-digit segment growth
Engine Services grew 15.3% and Component Repair grew 19.6%. If either drops out of double digits, the growth premium gets harder to defend.
risk
secondary share sale
50 million shares from existing holders is not a thesis killer, but it is real supply. Watch how the stock trades after the deal clears.
Analyst rankings
risk profile
average
stability score 3. in human-speak, this sits in the middle of the pack — not especially safe, not obviously fragile.
street target setup
below price
the midpoint target shown here is $28 versus a $30.57 stock price. Translation: analysts are not handing you free upside on valuation alone.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 136 buyers vs. 105 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$17
$38
$31
current price
$28
target midpoint · 8% from current · 3-5yr high: $45 (+45% · 10% ann'l return)
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