StandardAero (NYSE:SARO – Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.08, FiscalAI reports. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.59 billion. StandardAero had a return on equity of 14.67% and a net margin of 5.12%.StandardAero’s quarterly revenue was up 4.6% on a year-over-year basis. During the same period last year, the company earned $0.20 earnings per share. StandardAero updated its FY 2026 guidance to 1.500-1.570 EPS.
Here are the key takeaways from StandardAero’s conference call:
- Strong second-quarter results: Revenue increased 4.6% year over year to $1.6 billion, while adjusted EBITDA rose 12.3% to $230 million and adjusted EBITDA margin reached a record 14.4%. Free cash flow was positive at $50 million, and adjusted EPS increased 24% to $0.40.
- 2026 guidance was raised: Management increased revenue guidance to $6.375 billion-$6.5 billion, adjusted EBITDA guidance to $885 million-$910 million, and adjusted EPS guidance to $1.50-$1.57. The company maintained its adjusted free cash flow outlook of $270 million-$300 million.
- Growth investments are gaining traction: The LEAP and CFM56 Dallas-Fort Worth programs reached profitability in the quarter, while a $180 million license expansion is expected to generate approximately $25 million of annual adjusted EBITDA at full run rate. StandardAero also completed its Unified Turbines acquisition and repurchased $40 million of shares during the quarter.
- Component Repair Services faced near-term margin pressure: CRS adjusted EBITDA margin fell to 26.3% from 29.0% due to work migration, employee ramp inefficiencies, and unfavorable military-platform timing. Management expects the pressure to ease in the second half and reiterated its full-year CRS outlook.
- Demand remains resilient despite supply-chain and fuel-price risks: Management reported no meaningful deterioration in supply-chain conditions or commercial demand from elevated jet fuel prices, but military revenue declined 3% in the quarter because of platform delays. The company expects military and helicopter growth to accelerate in the second half of 2026.
StandardAero Stock Performance
NYSE SARO traded down $0.71 on Friday, hitting $29.29. 6,297,743 shares of the stock were exchanged, compared to its average volume of 3,160,836. The company has a market capitalization of $9.74 billion, a PE ratio of 30.20 and a beta of 0.92. The company has a debt-to-equity ratio of 0.81, a current ratio of 2.12 and a quick ratio of 1.59. The business’s fifty day moving average is $27.93 and its 200 day moving average is $28.03. StandardAero has a 52 week low of $23.83 and a 52 week high of $34.48.
Analysts Set New Price Targets
Check Out Our Latest Stock Report on StandardAero
StandardAero News Summary
Here are the key news stories impacting StandardAero this week:
- Positive Sentiment: Q2 results exceeded expectations. StandardAero reported adjusted earnings of $0.40 per share, above estimates ranging from $0.32 to $0.35 and double the $0.20 reported a year earlier. Revenue reached $1.60 billion, slightly ahead of the $1.59 billion consensus and up 4.6% year over year. StandardAero Tops Q2 Earnings and Revenue Estimates
- Positive Sentiment: Full-year guidance was raised above Wall Street expectations. StandardAero forecast fiscal 2026 EPS of $1.50–$1.57, compared with consensus of $1.23, while revenue guidance of $6.4–$6.5 billion was broadly in line with expectations. The guidance supports the outlook for continued earnings growth in the aerospace maintenance, repair and overhaul market.
- Neutral Sentiment: Investor expectations remain relatively favorable. Analysts maintain a consensus “Moderate Buy” rating and an average price target of $34, above recent trading levels. However, the stock’s price-to-earnings ratio above 33 indicates that considerable optimism may already be reflected in the valuation.
- Negative Sentiment: CEO Russell Wayne Ford continued selling shares. Ford sold 40,000 shares on August 6 at an average price of $31.42, worth approximately $1.26 million, reducing his position by 11.24%. This followed sales of 40,000 shares on August 4 and 10,969 shares on August 3, adding to a pattern of sizable insider selling that may have pressured the stock or encouraged profit-taking. SEC Insider Transaction Filing
Insider Activity at StandardAero
In other news, CEO Russell Wayne Ford sold 40,000 shares of the business’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $30.44, for a total transaction of $1,217,600.00. Following the transaction, the chief executive officer directly owned 486,955 shares in the company, valued at $14,822,910.20. The trade was a 7.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last ninety days, insiders have sold 170,969 shares of company stock valued at $5,222,709. Company insiders own 2.10% of the company’s stock.
Hedge Funds Weigh In On StandardAero
A number of hedge funds and other institutional investors have recently bought and sold shares of SARO. Price T Rowe Associates Inc. MD lifted its stake in shares of StandardAero by 33.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,000,143 shares of the company’s stock worth $401,525,000 after buying an additional 3,540,167 shares during the last quarter. Victory Capital Management Inc. grew its stake in StandardAero by 175.8% in the 4th quarter. Victory Capital Management Inc. now owns 5,040,723 shares of the company’s stock valued at $144,568,000 after buying an additional 3,212,827 shares during the last quarter. State Street Corp grew its stake in StandardAero by 90.7% in the 2nd quarter. State Street Corp now owns 6,047,097 shares of the company’s stock valued at $191,391,000 after buying an additional 2,875,579 shares during the last quarter. Wellington Management Group LLP raised its holdings in StandardAero by 18.2% in the 3rd quarter. Wellington Management Group LLP now owns 10,345,564 shares of the company’s stock valued at $282,330,000 after acquiring an additional 1,593,347 shares during the period. Finally, T. Rowe Price Investment Management Inc. raised its holdings in StandardAero by 11.1% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 11,984,551 shares of the company’s stock valued at $343,717,000 after acquiring an additional 1,194,488 shares during the period.
StandardAero Company Profile
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.
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