StandardAero Profit Climbs 36.2% As Engine Repairs Power A Higher Full-Year Outlook
The aircraft-engine services company also intends to repurchase $350 million of shares, while component repair earnings fell.
StandardAero, which maintains and repairs aircraft engines, grew third-quarter net income 36.2% to $92.8 million and raised its 2026 outlook Thursday, according to results furnished with its SEC filing. 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% 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 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 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 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.
Sources
- 8-K Filing — StandardAero, Inc. (SARO) — SEC EDGAR
- Exhibit saro-ex99_1.htm — StandardAero, Inc. 8-K exhibit — SEC EDGAR
- Can Air Corsica Engine Deal Change The Case For StandardAero Stock — Yahoo Finance
- StandardAero Announces Third Quarter 2026 Results — businesswire.com
