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# StandardAero Profit Climbs 36.2% As Engine Repairs Power A Higher Full-Year Outlook
- URL: https://www.bullished.co/standardaero-profit-climbs-36-2-as-engine-repairs-power-a-higher-full-year-outlook-60281795/
- Published: 2026-11-06T13:07:31.000Z
- Updated: 2026-11-06T13:07:31.000Z
- Description: The aircraft-engine services company also intends to repurchase $350 million of shares, while component repair earnings fell.
- Author: Matteo Parrino
- Tags: Earnings, SARO, Industry: Industrials

[StandardAero](https://www.bullished.co/tag/saro/), which maintains and repairs aircraft engines, [grew third-quarter net income 36.2%](https://www.businesswire.com/news/home/20261105512893/en/StandardAero-Announces-Third-Quarter-2026-Results?ref=bullished.co) to $92.8 million and raised its 2026 outlook Thursday, according to results furnished with its [SEC filing](https://www.sec.gov/Archives/edgar/data/0002025410/000202541026000019/saro-20261105.htm?ref=bullished.co). Engine Services supplied the earnings growth behind the increase, while Component Repair Services earned less despite higher sales.

## Engine Earnings Outpace Sales

Quarterly revenue [rose 4.0%](https://www.businesswire.com/news/home/20261105512893/en/StandardAero-Announces-Third-Quarter-2026-Results?ref=bullished.co) from a year earlier to $1,557.4 million. Diluted earnings reached $0.28 per share, versus $0.20, while adjusted earnings rose 30% to $0.39 from $0.30.

Companywide adjusted earnings before interest, taxes, depreciation and amortization—a measure that also removes certain other costs—rose 15% to $224.9 million from $195.6 million. The margin on that measure improved to 14.4% from 13.1%; StandardAero credited volume, the mix of work, productivity and the removal of material revenue passed through to customers.

Engine Services produced $205.1 million of adjusted earnings on that basis, up 24%, against revenue growth of 3.5% to $1,368.8 million. More work, productivity gains, the mix of business and increased use of serviceable used material helped lift its margin to 15.0% from 12.5%.

Paul McElhinney, StandardAero’s chief executive officer, cited “record 24% [Adjusted EBITDA growth](https://www.sec.gov/Archives/edgar/data/0002025410/000202541026000019/saro-ex99%5F1.htm?ref=bullished.co) in Engine Services” as support for another increase in the annual outlook.

Component Repair Services moved the other way. Adjusted earnings fell 9.9% to $48.6 million from $54.0 million, while revenue increased 7.3% to $188.7 million. Productivity and the mix of work weighed on earnings, and the segment’s margin fell to 25.8% from 30.7%.

## Higher Targets Across The Engine Business

StandardAero now forecasts [adjusted earnings](https://www.sec.gov/Archives/edgar/data/0002025410/000202541026000019/saro-ex99%5F1.htm?ref=bullished.co) of $1.57 to $1.62 per share for 2026\. Its increased revenue forecast is $6,525 million to $6,645 million, and its higher adjusted earnings-before-interest-and-other-costs target is $905 million to $920 million.

The company expects Engine Services revenue of $5,770 million to $5,870 million and segment adjusted earnings of $810 million to $820 million. Component Repair Services targets are $755 million to $775 million in revenue and $205 million to $210 million in adjusted earnings. The revenue outlook includes the removal of approximately $300 million in material pass-through revenue.

StandardAero serves aircraft operators across commercial, military and business aviation, providing engine overhauls, component repairs and field support under manufacturer authorizations. Approximately 80% of its 2025 revenue came from customers with long-term agreements; it serves approximately 5,000 customers globally.

All major end markets grew during the quarter. Business aviation revenue increased 7.4%, military and helicopter revenue rose 7.2%, and commercial aerospace revenue increased 1.3%.

## Buybacks And The Cash-Flow Adjustment

The board approved a $560.0 million expansion of the buyback program Wednesday, bringing authorization to $1.0 billion. StandardAero reported $850.0 million still available and approximately $160.1 million of shares repurchased to date, including $50.1 million during the third quarter.

The company intends to arrange a $350.0 million accelerated share repurchase with Morgan Stanley. Completion would leave approximately $500.0 million available for additional purchases.

Operating cash flow totaled $128.9 million for the quarter. StandardAero reported [adjusted free cash flow](https://www.sec.gov/Archives/edgar/data/0002025410/000202541026000019/saro-ex99%5F1.htm?ref=bullished.co) of $99.2 million, but unadjusted free cash flow was negative $80.952 million: the adjusted figure excludes $180.119 million spent on intangible assets.

The annual adjusted free cash flow forecast is $270 million to $300 million. Management is switching its cash-flow guidance to that measure, saying the exclusion offers a better baseline for core operations. Its adjusted earnings-per-share definition also changed in the second quarter to exclude amortization of all intangible assets, including licenses, rather than only acquired intangibles.

The planned $350.0 million repurchase remains an intended transaction, rather than a completed return of cash to shareholders.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — StandardAero, Inc. (SARO)](https://www.sec.gov/Archives/edgar/data/0002025410/000202541026000019/saro-20261105.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit saro-ex99\_1.htm — StandardAero, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0002025410/000202541026000019/saro-ex99%5F1.htm?ref=bullished.co) — SEC EDGAR
- [Can Air Corsica Engine Deal Change The Case For StandardAero Stock](https://uk.finance.yahoo.com/news/air-corsica-engine-deal-change-001527310.html?ref=bullished.co) — Yahoo Finance
- [StandardAero Announces Third Quarter 2026 Results](https://www.businesswire.com/news/home/20261105512893/en/StandardAero-Announces-Third-Quarter-2026-Results?ref=bullished.co) — businesswire.com

### More on StandardAero

- [StandardAero Lifts Buyback Authorization To Over $1 Billion, Adds $350 Million Accelerated Repurchase](https://www.bullished.co/standardaero-lifts-buyback-authorization-to-over-1-billion-adds-350-million-accelerated-4364bce7/)

[All StandardAero (SARO) coverage →](https://www.bullished.co/tag/saro/)