StandardAero Reports Record 2025 Results with Strong Growth and Positive 2026 Outlook
SARO sits 47% above its 52-week low of $21.31.
Summary
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.
Key Events · Earnings and Guidance · SARO
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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.
Analysis · SARO · Manufacturing
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.