A Business at a Glance
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StandardAero, Inc.
SARO
$9.6B
Mkt Cap
$28.70
+1.56%
StandardAero, Inc. (SARO) has a current P/E ratio of 34.6, compared to its historical median P/E of 35.1. The stock is currently considered Cheap based on its historical valuation range.
StandardAero, Inc. (SARO) has a 5-year average return on invested capital (ROIC) of 7.1%. This is below average and may indicate limited pricing power.
StandardAero, Inc. (SARO) has a market capitalization of $9.5B. It is classified as a mid-cap stock.
StandardAero, Inc. (SARO) does not currently pay a regular dividend.
Based on historical P/E analysis, StandardAero, Inc. (SARO) appears cheap. The current P/E of 34.6 is 2% below its historical median of 35.1. The estimated fair value CAGR (P/E method) is 206.3%.
StandardAero, Inc. (SARO) operates in the Aircraft Engines & Engine Parts industry, within the Industrials sector.
StandardAero, Inc. (SARO) reported annual revenue of $6.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
StandardAero is the world's largest independent, pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft across commercial, military, and business aviation end markets, with over 100 years of operational history. The company delivers a comprehensive suite of critical aftermarket solutions including scheduled and unscheduled engine maintenance, repair and overhaul (MRO), engine component repair, on-wing and field service support, asset management, and engineering solutions, serving approximately 5,000 customers globally through long-term contracts (approximately 80% of revenue) and transactional relationships. StandardAero holds exclusive or semi-exclusive OEM authorizations for multiple engine platforms including Rolls-Royce RB211-535, AE 1107, AE 2100, AE 3007, Honeywell HTF7000, Safran Arriel, and was the first independent CFM International LEAP-1A and LEAP-1B Premier MRO service provider in the Americas, with contracts typically ranging from one to 30 years. The company operates through two segments: Engine Services, which generates the majority of revenue through time-and-material, fixed-price-per-event, and fixed-price-per-engine-hour contracts, and Component Repair Services, a large independent engine component repair platform serving commercial aerospace, military, land and marine, and oil and gas end markets with attractive margins and significant growth opportunities. StandardAero's competitive moat is built on its strong track record of safety, reliability, and operational performance, exclusive OEM authorizations, long-standing relationships with both OEMs and aircraft operators, and a portfolio of over 20,000 licensed component repairs that create synergies between its two business segments.
【Strong demand momentum continuing】 Management expects continued robust demand across all major end markets through 2026 and beyond, with commercial aerospace benefiting from tight global MRO capacity, business aviation experiencing sustained strength, and military and helicopter platforms showing accelerating growth. The company anticipates its growth platforms—particularly LEAP and CFM56 DFW—to reach profitability in the first half of 2026 and continue accretion thereafter, with LEAP revenues expected to reach approximately $1 billion annually by the end of the decade. StandardAero is focused on margin expansion through elimination of low-margin pass-through material, productivity improvements, and favorable mix as growth programs mature, while maintaining disciplined capital allocation combining organic investments, accretive M&A, and opportunistic share repurchases within its 2x–3x leverage target range.
| Metric | Target | Period |
|---|---|---|
| Revenue | $6.325 billion–$6.45 billion | FY2026 |
| Adjusted EBITDA | $875 million–$905 million | FY2026 |
| Adjusted EPS | $1.40–$1.50 | FY2026 |
| Free Cash Flow | $270 million–$300 million | FY2026 |
Revenue (FY2026): “we now expect revenue of $6.325 billion-$6.45 billion”
Adjusted EBITDA (FY2026): “we are raising guidance by $5 million at the bottom end of the range, which now stands at $875 million-$905 million”
Adjusted EPS (FY2026): “Our adjusted EPS guidance increases $0.05 to a range of $1.40-$1.50, representing 22% year-over-year growth at the midpoint”
Free Cash Flow (FY2026): “we are reiterating our free cash flow guidance of $270 million-$300 million”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|
| Revenue | 6.3B | 6.1B | 5.2B | 4.6B | 4.2B |
| Net Income | 294M | 277M | 11M | -35M | -21M |
| EPS | $0.88 | $0.83 | $0.04 | $-0.13 | $-0.08 |
| Free Cash Flow | 148M | 234M | -27M | 13M | -14M |
| ROIC | 8.7% | 8.7% | 5.4% | 7.1% | - |
| Gross Margin | - | 14.8% | 14.4% | 13.9% | 13.1% |
| Debt/Equity | 0.82 | 0.92 | 1.02 | 2.94 | - |
| Dividends/Share | $0.00 | - | - | - | - |
| Operating Income | 565M | 551M | 403M | 337M | 263M |
| Operating Margin | 9.0% | 9.1% | 7.7% | 7.4% | 6.3% |
| ROE | 10.9% | 11.0% | 0.6% | -3.0% | - |
| Shares Outstanding | 332M | 334M | 274M | 270M | 263M |
| Metric | |||||
|---|---|---|---|---|---|
| Income Statement | |||||
| Revenue | 4.2B | 4.6B | 5.2B | 6.1B | 6.3B |
| Gross Margin | 13.1% | 13.9% | 14.4% | 14.8% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A |
| SG&A | 188M | 203M | 254M | 248M | 255M |
| EBIT | 263M | 337M | 403M | 551M | 565M |
| Op. Margin | 6.3% | 7.4% | 7.7% | 9.1% | 9.0% |
| Net Income | -21M | -35M | 11M | 277M | 294M |
| Net Margin | -0.5% | -0.8% | 0.2% | 4.6% | 4.7% |
| Non-Recurring | 202K | 14K | -482K | -2.8M | -2.8M |
| Returns on Capital | |||||
| ROIC | N/A | 7.1% | 5.4% | 8.7% | 8.7% |
| ROE | N/A | -3.0% | 0.6% | 11.0% | 10.9% |
| ROA | N/A | -1.2% | 0.2% | 4.3% | 4.4% |
| Cash Flow | |||||
| Op. Cash Flow | 27M | 68M | 76M | 317M | 221M |
| Free Cash Flow | -14M | 13M | -27M | 234M | 148M |
| Owner Earnings | -168M | -129M | -128M | 110M | 15M |
| CapEx | 41M | 55M | 103M | 82M | 73M |
| Maint. CapEx | 195M | 197M | 187M | 194M | 191M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 |
| D&A | 195M | 197M | 187M | 194M | 191M |
| CapEx/OCF | N/A | N/A | 134.9% | 26.0% | 32.9% |
| Capital Allocation | |||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | N/A | N/A | 17M | 13M | 15M |
| Debt Repayment | 169M | 1.5B | 4.2B | 738M | 738M |
| Balance Sheet | |||||
| Net Debt | 25M | 3.3B | 2.3B | 2.2B | 2.1B |
| Cash & Equiv. | 120M | 58M | 103M | 290M | 89M |
| Long-Term Debt | 145M | 3.2B | 2.2B | 2.2B | 2.2B |
| Debt/Equity | N/A | 2.94 | 1.02 | 0.92 | 0.82 |
| Interest Coverage | 1.1 | 1.1 | 1.4 | 3.2 | 3.4 |
| Equity | N/A | 1.1B | 2.4B | 2.7B | 2.7B |
| Total Assets | N/A | 5.8B | 6.2B | 6.6B | 6.7B |
| Total Liabilities | N/A | 4.6B | 3.8B | 3.9B | 4.0B |
| Intangibles | N/A | 1.3B | 1.3B | 1.2B | 234M |
| Retained Earnings | N/A | -1.6B | -1.6B | -1.3B | -1.2B |
| Working Capital | N/A | 1.1B | 1.2B | 1.6B | 1.6B |
| Current Assets | N/A | 2.1B | 2.5B | 2.9B | 3.1B |
| Current Liabilities | N/A | 1.1B | 1.3B | 1.3B | 1.4B |
| Per Share Data | |||||
| EPS | -0.08 | -0.13 | 0.04 | 0.83 | 0.88 |
| Owner EPS | -0.64 | -0.48 | -0.47 | 0.33 | 0.05 |
| Book Value | N/A | 4.25 | 8.65 | 7.98 | 8.09 |
| Cash Flow/Share | 0.10 | 0.25 | 0.28 | 0.95 | 1.46 |
| Dividends/Share | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 262.5M | 269.7M | 274.4M | 334.2M | 332.3M |
| Valuation | |||||
| P/E Ratio | N/A | N/A | 639.5 | 35.1 | 32.5 |
| P/FCF | N/A | N/A | N/A | 41.6 | 64.2 |
| EV/EBIT | N/A | N/A | 22.5 | 20.7 | 20.6 |
| Price/Book | N/A | N/A | 3.0 | 3.7 | 3.5 |
| Price/Sales | N/A | N/A | 1.5 | 1.5 | 1.5 |
| FCF Yield | N/A | N/A | -0.4% | 2.4% | 1.6% |
| Market Cap | 0 | N/A | 7.0B | 9.7B | 9.5B |
| Avg. Price | 0.00 | N/A | 29.07 | 27.47 | 28.70 |
| Year-End Price | 0.00 | N/A | 25.58 | 29.16 | 28.70 |
StandardAero, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
StandardAero, Inc. trades at 34.6x trailing earnings, compared to its 15-year median P/E of 35.1x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 40.7x vs a median of 41.6x. The company's 5-year average ROIC is 7.1% with a gross margin of 14.1%. At current prices, the estimated annualized return to fair value is +206.3%.
StandardAero, Inc. (SARO) has a net profit margin of 4.6%. This is a modest margin.
StandardAero, Inc. (SARO) generated $234 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
StandardAero, Inc. (SARO) has a debt-to-equity ratio of 0.92. This indicates moderate leverage.
StandardAero, Inc. (SARO) reported earnings per share (EPS) of $0.83 in its most recent fiscal year.
StandardAero, Inc. (SARO) has a return on equity (ROE) of 11.0%. This indicates moderate shareholder returns.
StandardAero, Inc. (SARO) has a 5-year average gross margin of 14.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 4 years of financial data for StandardAero, Inc. (SARO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
StandardAero, Inc. (SARO) has a book value per share of $7.98, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued robust demand across all major end markets through 2026 and beyond, with commercial aerospace benefiting from tight global MRO capacity, business aviation experiencing sustained strength, and military and helicopter platforms showing accelerating growth. The company anticipates its growth platforms—particularly LEAP and CFM56 DFW—to reach profitability in the first half of 2026 and continue accretion thereafter, with LEAP revenues expected to reach approximately $1 billion annually by the end of the decade. StandardAero is focused on margin expansion through elimination of low-margin pass-through material, productivity improvements, and favorable mix as growth programs mature, while maintaining disciplined capital allocation combining organic investments, accretive M&A, and opportunistic share repurchases within its 2x–3x leverage target range.
Based on recent SEC filings and earnings calls, StandardAero, Inc. (SARO) has provided the following forward guidance: Revenue: $6.325 billion–$6.45 billion (FY2026); Adjusted EBITDA: $875 million–$905 million (FY2026); Adjusted EPS: $1.40–$1.50 (FY2026); Free Cash Flow: $270 million–$300 million (FY2026).