StandardAero Reports Record 2025 Results with Strong Growth and Positive 2026 Outlook
summarizeSummary
StandardAero announced record financial results for fiscal year 2025, driven by strong revenue and Adjusted EBITDA growth, significant free cash flow generation, and provided positive guidance for continued double-digit earnings growth in 2026.
check_boxKey Events
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Record Full Year 2025 Financial Performance
StandardAero reported full year 2025 revenue of $6,062.5 million, an increase of 15.8% year-over-year, and Adjusted EBITDA of $808.2 million, up 17.0% year-over-year.
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Significant Improvement in Profitability and Cash Flow
Net Income for 2025 surged to $277.4 million from $11.0 million in the prior year, with Diluted EPS of $0.83. Free Cash Flow for the year was $209.0 million, a substantial improvement from a negative $45.1 million in 2024.
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Strong 2026 Guidance for Continued Growth
The company initiated full year 2026 guidance, projecting revenue between $6,275 million and $6,425 million, Adjusted EBITDA between $870 million and $905 million, and Adjusted EPS between $1.35 and $1.45, indicating continued double-digit earnings growth.
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Improved Leverage Ratio
The Net Debt to Adjusted EBITDA Leverage Ratio improved to 2.4x as of December 31, 2025, down from 3.1x in the prior year, reflecting a stronger balance sheet.
auto_awesomeAnalysis
StandardAero delivered a record year in 2025, marked by robust revenue and Adjusted EBITDA growth, and a significant turnaround in free cash flow. The company's net income saw a substantial increase, and its leverage ratio improved considerably. The positive momentum is expected to continue into 2026, with guidance projecting further double-digit earnings growth. This strong financial performance and optimistic outlook are highly positive signals for investors, demonstrating effective execution and a healthy market for its services.
At the time of this filing, SARO was trading at $31.35 on NYSE in the Manufacturing sector, with a market capitalization of approximately $10.3B. The 52-week trading range was $21.31 to $34.48. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.