StandardAero (NYSE:SARO – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.38 by $0.01, FiscalAI reports. The business had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.56 billion. StandardAero had a return on equity of 14.52% and a net margin of 5.12%. The firm’s quarterly revenue was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.20 earnings per share.
Here are the key takeaways from StandardAero’s conference call:
- Q3 earnings growth outpaced revenue: Revenue rose 4% to $1.56 billion, while adjusted EBITDA increased 15% and adjusted EPS grew 30%; adjusted EBITDA margin expanded 130 basis points to 14.4%.
- 2026 guidance was raised again: StandardAero now expects revenue growth of about 9%, adjusted EBITDA growth of 13%, and adjusted EPS growth of 26%. It maintained adjusted free cash flow guidance of $270 million–$300 million.
- Aftermarket demand and visibility remain strong: Management reported no meaningful macro-driven change in bookings or planned engine inductions, with demand visibility extending into 2028. LEAP and CFM56 DFW reached profitability earlier this year, and the company remains on track to exceed $1 billion in annual LEAP revenue by 2030.
- Share repurchases are expanding: The company increased its authorization to $1.01 billion and announced a $350 million accelerated repurchase. Management expects year-end net leverage below 2.7 times after the repurchase.
- Some near-term margin pressures remain: Delayed military-related inputs and repair activity, particularly on training platforms, weighed on component repair margins. Management also cautioned that Q3’s unusually favorable used-serviceable-material contribution may not recur and that rising LEAP and CFM56 DFW volumes could dilute Q4 Engine Services margins.
StandardAero Stock Performance
Shares of NYSE SARO traded up $2.21 during trading on Friday, reaching $27.51. 6,848,326 shares of the company traded hands, compared to its average volume of 3,432,492. The firm has a 50 day simple moving average of $22.70 and a 200-day simple moving average of $26.54. StandardAero has a 52-week low of $19.56 and a 52-week high of $34.48. The stock has a market capitalization of $9.10 billion, a PE ratio of 26.20 and a beta of 0.82. The company has a quick ratio of 1.59, a current ratio of 2.13 and a debt-to-equity ratio of 0.84.
Analyst Upgrades and Downgrades
A number of research firms have recently commented on SARO. JPMorgan Chase & Co. increased their target price on StandardAero from $38.00 to $40.00 and gave the stock an “overweight” rating in a research note on Monday, August 10th. Bank of America reduced their price target on StandardAero from $35.00 to $27.00 and set a “neutral” rating for the company in a report on Thursday, September 17th. Guggenheim started coverage on StandardAero in a research report on Monday, September 14th. They issued a “neutral” rating for the company. Weiss Ratings cut shares of StandardAero from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, September 11th. Finally, Susquehanna reiterated a “negative” rating on shares of StandardAero in a research note on Thursday, October 1st. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $33.27.
Check Out Our Latest Research Report on StandardAero
StandardAero News Roundup
Here are the key news stories impacting StandardAero this week:
- Positive Sentiment: UBS raised its price target to $34 from $32 and maintained a Buy rating, implying 23.6% upside from the cited $27.51 price. UBS rating information
- Positive Sentiment: Third-quarter adjusted EPS was $0.39, beating the $0.38 consensus and rising 30% year over year. Revenue increased 4% to $1.56 billion, while net income rose 36.2% to $92.8 million. The earnings beat and profit growth may support investor confidence. Third-quarter 2026 results
- Negative Sentiment: A Seeking Alpha contributor said they were cutting their rating after StandardAero had gained 19% since their previous article, signaling a more cautious view after the recent run-up. Seeking Alpha analysis
StandardAero Company Profile
StandardAero is an aerospace maintenance, repair and overhaul (MRO) company that provides services for commercial and business aviation, military and government operators, and helicopter customers. The company supports aircraft throughout their operating life, helping customers maintain, repair, upgrade and return aircraft and components to service.
Its services include engine maintenance, repair and overhaul; airframe maintenance; avionics and electrical work; component and accessory repair; engineering; and aircraft modifications.
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