Standardaero Stock Earnings Reports

StandardAero reported a solid start to 2026 with broad-based, double-digit revenue growth across commercial aerospace, business aviation and military/helicopter markets. Q1 revenue was $1.63B (organic growth 13.3%), adjusted EBITDA was $203M (up $5M YOY) and adjusted EPS rose 14% to $0.33. Management raised full-year guidance: revenue to $6.325B–$6.45B, adjusted EBITDA to $875M–$905M and adjusted EPS to $1.40–$1.50; free cash flow guidance remains $270M–$300M. Key drivers: continued ramp of LEAP and CFM56 DFW programs (LEAP revenue 4x YOY), strong CF34 demand with Winnipeg expansion, accelerating military demand (notably AE2100, AE1107 and F110 platforms) following U.S. government restart, and ongoing component repair (CRS) expansion including the acquisition of Unified Turbines. Near-term margin/headline EBITDA was pressured by several largely transitory items — ramp learning curve for LEAP/CFM56 DFW, faster-than-expected burn down of low-margin pass-through inventory from restructured contracts, timing/mix of engine shipments, and one-time military program closeout costs — but management says excluding these items Q1 adjusted EBITDA margin would have exceeded 14% and expects margin expansion beginning Q2. Balance sheet: net leverage 2.6x (within 2–3x target); repurchased $60M of shares in Q1. Working capital drove a Q1 free cash flow use ($134M) largely due to billed AR build and contract asset build tied to CF34 growth and Winnipeg expansion; management expects working capital to decline in H2 and full-year cash conversion consistent with guidance. Management affirms resilience of MRO demand despite geopolitical/energy volatility, cites structural MRO tightness, portfolio diversification, supply-chain actions, and pricing protections as key supports.