Record 2025 financials: StandardAero reported revenue up about 16% and adjusted EBITDA up 17%, with full‑year net income of $277M and adjusted EPS of $1.19; free cash flow rebounded to $209M for 2025 (Q4 $308M) and management targets ~80–100% cash conversion over time.
Program and margin improvements: The company rapidly ramped newer programs (60 LEAP engines inducted in 2025 vs. 10 in 2024) and expanded CF34/HTF7000 capacity, while restructuring contracts to remove $300–$400M of low‑margin pass‑through revenue to lift reported margins.
2026 outlook and near‑term headwinds: Guidance calls for revenue of $6.275–6.425B, adjusted EBITDA $870–905M (implying ~14% margins), adjusted EPS $1.35–1.45 and free cash flow $270–300M, with early‑year CRS pressure from a Phoenix facility fire and a U.S. government shutdown already included in the full‑year plan.
StandardAero (NYSE:SARO) executives told investors the company delivered another “record year” in 2025, highlighted by double-digit revenue and earnings growth, a sharp improvement in free cash flow, and progress ramping newer engine programs such as LEAP. Management also provided 2026 guidance calling for continued earnings growth, margin expansion, and higher free cash flow, while noting near-term headwinds in component repair related to a U.S. government shutdown and a fire at a Phoenix facility.
Chairman and CEO Russell Ford said 2025 was StandardAero’s 114th year and its first full year as a publicly traded company, calling it “another record year.” The company reported revenue growth of 16% year-over-year and adjusted EBITDA growth of 17%, supported by “robust demand” and “high-quality execution,” according to Ford.
CFO Dan Satterfield said fourth-quarter 2025 revenue was $1.6 billion, up from $1.4 billion in the prior-year quarter for 13.5% growth, which he said was entirely organic. For the full year, revenue increased 15.8% versus 2024, which management framed as roughly 14.5% organic growth.
Adjusted EBITDA was $210 million in Q4, up from $186 million a year earlier. For 2025, adjusted EBITDA totaled $808 million, up 17% year-over-year. The company reported net income of $79 million in Q4 compared with a net loss of $14 million in Q4 2024, which Satterfield attributed primarily to higher operating earnings, lower interest, and fewer one-time costs tied to the prior year’s IPO and refinancing activity. Full-year 2025 net income was $277 million, up $266 million year-over-year. Adjusted net income was $398 million and adjusted EPS was $1.19.
StandardAero generated free cash flow of $209 million for 2025, including $308 million in the fourth quarter. Ford said the second half produced more than $300 million, consistent with the company’s “typical seasonal trends,” and pointed to the company’s “asset-light business model and cash management initiatives.”
Satterfield said the fourth-quarter cash performance reflected deliveries of engines that had been held up by parts constraints for several quarters. Those deliveries drove a $183 million reduction in inventory and contract assets and a working-capital improvement that management highlighted as meaningful. For the full year, the $209 million of free cash flow compared with a $45 million use of cash in 2024, and Satterfield said the result equated to a 75% free-cash-flow conversion on net income.
Looking ahead, management said it expects free cash flow to grow again in 2026 and beyond. In Q&A, Satterfield said the company expects to expand beyond 75% conversion and characterized StandardAero as an “80%-100% free cash flow conversion company” over time.
Ford highlighted progress on the LEAP program, stating StandardAero inducted 60 LEAP engines in 2025, up from 10 in 2024. He also said second-half 2025 LEAP revenues were about 2.5 times first-half revenues. Ford added that the company’s “planned slots” for 2026 are “already filled” following several customer wins, and said StandardAero has developed more than 475 LEAP component repairs and recently delivered its first full overhaul on the platform.
In business aviation, Ford said StandardAero completed an expansion of its Augusta facility, adding MRO capacity and hangar space to handle large cabin jets. He tied the expansion to expected growth on the HTF7000 engine, where StandardAero is the market leader and holds “the worldwide exclusive, independent, heavy overhaul license,” according to his prepared remarks.
On the CF34 platform, Ford said demand was stronger than expected and that the company is expanding its flagship CF34 facility in Winnipeg, with completion expected in the second half of 2026. He linked that capacity investment to an expanded license relationship with GE earlier in 2025 and to long-term contracts with major operators.
Management also reiterated it has been restructuring customer contracts to eliminate pass-through material. Ford said this will remove $300 million to $400 million of low-margin revenue and result in higher reported margins that better reflect underlying performance.
Engine Services revenue rose to $5.35 billion in 2025, up 15.3% year-over-year, with growth drivers including CF34, HTF7000, turboprops, and the LEAP and CFM56 programs, which Satterfield said contributed “several hundred million” in revenue growth. Engine Services adjusted EBITDA increased 15.7% in 2025, while segment margins were flat year-over-year, as productivity and operating leverage offset dilution from early-stage ramp costs in LEAP and the CFM56 DFW program. In Q4, Engine Services adjusted EBITDA margin was 13.4%, up 60 basis points year-over-year.
Component Repair Services (CRS) revenue increased 19.6% to $709 million. CRS adjusted EBITDA grew 31% and margins improved by 250 basis points year-over-year, driven by volume, pricing, mix, and synergies from the ATI acquisition. Ford said ATI synergies were “producing above plan” and helped lift the CRS margin profile into the high 20s from the mid-20s previously.
Satterfield also flagged two items that affected CRS performance in Q4:
Phoenix facility fire: A “small fire” occurred in early December, with no injuries reported. The site was shut down for nearly all of December, affecting Q4 revenue growth and margins. The facility returned online in the second half of January, and management said it will take a few months to return to previous activity levels.
U.S. government shutdown: The shutdown weighed on CRS military-related activity in Q4 and also affected StandardAero’s broader military revenues, which Ford said grew 9% in 2025 despite the disruption.
For 2026, StandardAero guided to revenue of $6.275 billion to $6.425 billion. Satterfield noted the company’s 4% to 6% growth outlook includes the impact of removing $300 million to $400 million of low-margin pass-through revenue in Engine Services. Excluding that effect, he said Engine Services growth at the midpoint would be greater than 10%.
By segment, the company forecast:
Engine Services revenue: $5.5 billion to $5.625 billion, including a year-over-year doubling of LEAP and CFM56 DFW revenues.
CRS revenue: $775 million to $800 million.
Adjusted EBITDA guidance for 2026 was $870 million to $905 million, implying about 10% growth at the midpoint and roughly 70 basis points of margin expansion to about 14%. Engine Services adjusted EBITDA is expected at $755 million to $780 million, and CRS adjusted EBITDA at $220 million to $230 million with margins of 28.5% to 29.5%.
The company also introduced adjusted EPS guidance of $1.35 to $1.45, compared with $1.19 in 2025. Free cash flow is expected to be $270 million to $300 million, with management reiterating that StandardAero is typically a second-half cash generator.
In Q&A, management said first-quarter CRS margin performance is expected to be pressured due to the shutdown spillover and the Phoenix fire, but emphasized those impacts are included in full-year guidance.
Executives also discussed industry conditions, saying supply chain constraints remain but are improving, and that pricing remains above pre-COVID trends due to tight capacity. Ford said the company has not faced labor constraints that limit growth, citing internal training programs and low attrition. The company ended 2025 with net leverage of 2.4x adjusted EBITDA, within its 2x to 3x target range, and reiterated its capital priorities, including organic investment, potential M&A, and share repurchases under a $450 million authorization announced in December.
StandardAero is a global aerospace maintenance, repair and overhaul (MRO) provider specializing in gas turbine engines, auxiliary power units (APUs), airframe components and oil & gas rotating equipment. The company offers a full suite of technical services including engine repair and overhaul, component repair, accessory maintenance, parts manufacturing and on-site field support. Its customer base spans commercial airlines, business and general aviation operators, regional carriers, original equipment manufacturers (OEMs) and defense organizations.
With roots dating back to 1911, StandardAero has grown through strategic acquisitions and organic expansion to become one of the largest independent MRO providers in the industry.
