StandardAero (SARO)
Market Price (12/26/2025): $29.37 | Market Cap: $9.6 BilSector: Industrials | Industry: Aerospace & Defense
StandardAero (SARO)
Market Price (12/26/2025): $29.37Market Cap: $9.6 BilSector: IndustrialsIndustry: Aerospace & Defense
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 18% | Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 95x, P/EPrice/Earnings or Price/(Net Income) is 52x |
| Low stock price volatilityVol 12M is 36% | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.2% |
| Megatrend and thematic driversMegatrends include Aerospace Sustainment. Themes include Aircraft Maintenance, Repair, and Overhaul, Show more. | Key risksSARO key risks include [1] parts shortages for critical engine platforms like the LEAP and PW1000G and [2] the potential loss of crucial Original Equipment Manufacturer (OEM) service authorizations. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 18% |
| Low stock price volatilityVol 12M is 36% |
| Megatrend and thematic driversMegatrends include Aerospace Sustainment. Themes include Aircraft Maintenance, Repair, and Overhaul, Show more. |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 95x, P/EPrice/Earnings or Price/(Net Income) is 52x |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.2% |
| Key risksSARO key risks include [1] parts shortages for critical engine platforms like the LEAP and PW1000G and [2] the potential loss of crucial Original Equipment Manufacturer (OEM) service authorizations. |
Why The Stock Moved
Qualitative Assessment
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1. Successful Initial Public Offering (IPO) and strong market debut. StandardAero Inc. commenced trading on the New York Stock Exchange (NYSE) under the symbol "SARO" on October 2, 2024, following an upsized initial public offering priced at $24.00 per share. This successful entry into the public market indicated significant investor confidence.
2. Positive analyst coverage and price targets. On October 10, 2025, Truist Securities initiated coverage on StandardAero Inc. with a "Buy" rating and a price target of $35.00. This favorable outlook from analysts can contribute to positive stock movement.
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Stock Movement Drivers
Fundamental Drivers
The 12.2% change in SARO stock from 9/25/2025 to 12/25/2025 was primarily driven by a 32.9% change in the company's Net Income Margin (%).| 9252025 | 12252025 | Change | |
|---|---|---|---|
| Stock Price ($) | 26.21 | 29.41 | 12.21% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 5618.77 | 5872.11 | 4.51% |
| Net Income Margin (%) | 2.37% | 3.15% | 32.86% |
| P/E Multiple | 64.71 | 52.29 | -19.18% |
| Shares Outstanding (Mil) | 328.44 | 328.45 | -0.00% |
| Cumulative Contribution | 12.21% |
Market Drivers
9/25/2025 to 12/25/2025| Return | Correlation | |
|---|---|---|
| SARO | 12.2% | |
| Market (SPY) | 4.9% | 57.1% |
| Sector (XLI) | 4.2% | 72.5% |
Fundamental Drivers
The -4.4% change in SARO stock from 6/26/2025 to 12/25/2025 was primarily driven by a 1.8% change in the company's Shares Outstanding (Mil).| 6262025 | 12252025 | Change | |
|---|---|---|---|
| Stock Price ($) | 30.77 | 29.41 | -4.42% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | � | 5872.11 | � |
| Net Income Margin (%) | � | 3.15% | � |
| P/E Multiple | � | 52.29 | � |
| Shares Outstanding (Mil) | 334.46 | 328.45 | 1.80% |
| Cumulative Contribution | � |
Market Drivers
6/26/2025 to 12/25/2025| Return | Correlation | |
|---|---|---|
| SARO | -4.4% | |
| Market (SPY) | 13.1% | 49.8% |
| Sector (XLI) | 8.8% | 61.9% |
Fundamental Drivers
The 15.4% change in SARO stock from 12/25/2024 to 12/25/2025 was primarily driven by a 0.0% change in the company's P/E Multiple.| 12252024 | 12252025 | Change | |
|---|---|---|---|
| Stock Price ($) | 25.48 | 29.41 | 15.42% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | � | 5872.11 | � |
| Net Income Margin (%) | � | 3.15% | � |
| P/E Multiple | � | 52.29 | � |
| Shares Outstanding (Mil) | 334.46 | 328.45 | 1.80% |
| Cumulative Contribution | � |
Market Drivers
12/25/2024 to 12/25/2025| Return | Correlation | |
|---|---|---|
| SARO | 15.4% | |
| Market (SPY) | 15.8% | 61.4% |
| Sector (XLI) | 18.6% | 66.3% |
Fundamental Drivers
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Market Drivers
12/26/2023 to 12/25/2025| Return | Correlation | |
|---|---|---|
| SARO | ||
| Market (SPY) | 48.3% | 56.5% |
| Sector (XLI) | 41.7% | 62.5% |
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| SARO Return | � | � | � | � | � | 19% | 19% |
| Peers Return | � | � | � | � | � | � | � |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 18% | 115% |
Monthly Win Rates [3] | |||||||
| SARO Win Rate | � | � | � | � | 0% | 67% | |
| Peers Win Rate | � | � | � | � | � | � | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | |
Max Drawdowns [4] | |||||||
| SARO Max Drawdown | � | � | � | � | � | -10% | |
| Peers Max Drawdown | � | � | � | � | � | � | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: ATRO, FLY, APEX, BETA, DFSC.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/24/2025 (YTD)
How Low Can It Go
SARO has limited trading history. Below is the Industrials sector ETF (XLI) in its place.
| Event | XLI | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -22.6% | -25.4% |
| % Gain to Breakeven | 29.2% | 34.1% |
| Time to Breakeven | 273 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -42.8% | -33.9% |
| % Gain to Breakeven | 74.8% | 51.3% |
| Time to Breakeven | 232 days | 148 days |
| 2018 Correction | ||
| % Loss | -24.6% | -19.8% |
| % Gain to Breakeven | 32.6% | 24.7% |
| Time to Breakeven | 312 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -63.3% | -56.8% |
| % Gain to Breakeven | 172.8% | 131.3% |
| Time to Breakeven | 1,463 days | 1,480 days |
Compare to
In The Past
SPDR Select Sector Fund's stock fell -22.6% during the 2022 Inflation Shock from a high on 1/4/2022. A -22.6% loss requires a 29.2% gain to breakeven.
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We believe that we are the world’s largest independent, pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets. We provide a comprehensive suite of critical, value-added aftermarket solutions, including scheduled and unscheduled engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. We serve a crucial role in the engine aftermarket value chain, connecting engine original equipment manufacturers (“OEMs”) with aircraft operators through our aftermarket services, maintaining longstanding relationships with both. We command a leading reputation that is based upon our strong track record of safety, reliability and operational performance built over our more than 100 years of successful operations in the aerospace aftermarket. Our business consists of an attractive mix of end markets, customers and engine platforms. Our revenue is highly diversified across the commercial, military and business aviation end markets. We believe this diversification provides us with significant resiliency, while affording us the ability to take advantage of new business opportunities that arise. In addition, diversification across engine OEMs and platforms reduces our exposure to idiosyncratic events that may impact demand related to a specific aircraft or engine type. Within our markets, we hold leadership positions on most of the engine platforms we serve, with an estimated 80% of our Engine Services sales in 2023 from engine platforms where we hold #1 or #2 positions globally. Our platform portfolio consists of a healthy mix of mature, growth and next generation programs and includes many of the engines that power the world’s most prevalent aircraft. For example, we provide support for the CFM56, which powers the Boeing 737NG and Airbus A320ceo family narrowbody aircraft and currently has the largest installed base of any engine platform, the LEAP-1A/-1B, which power the next generation of narrowbody aircraft and are expected to become the most widely fielded platform family in the world by the early 2030s, and the CF34, which powers many of the world’s most utilized regional jets. On several platforms, we hold contracts directly with the OEM that designates us as the primary or sole outsourced provider of maintenance services for the engine. Furthermore, with approximately 77% of our revenue in the year ended December 31, 2023 derived from long-term contractual agreements, our financial profile is characterized by a significant amount of predictable, recurring revenue supported by the highly regulated nature of aircraft engine maintenance requirements. We are also one of the largest independent engine component repair platforms globally, providing services to commercial aerospace, military, land and marine and oil and gas end markets. We have made substantial investments in our Component Repair Services business, which provides attractive margins, significant growth opportunities and synergies with our Engine Services business. --- Core to our strategy is our positioning as an OEM-aligned and independent service provider of aftermarket services. Our OEM-aligned strategy, coupled with our scale and service performance, entrenches us as a trusted and preferred partner to every major OEM, including GE Aerospace, CFM International, Pratt & Whitney, Rolls-Royce, Honeywell and Safran. We hold long-term OEM licenses and authorizations to provide aftermarket support for all of the engine platforms that we service, and we believe we have a 100% historical success rate on the OEM licenses and authorizations we sought to retain upon their expiration. Our status as an independent services provider, not affiliated with any single OEM or airline operator, provides us with diversification and enhances the value proposition that we can offer to customers. These factors are critical drivers of our ability to cultivate decades-long relationships with many of our approximately 5,000 customers globally. The engine aftermarket solutions we provide are mission-critical to our customers’ flight operations and our OEM partners’ businesses. Furthermore, aerospace engine maintenance is highly specialized and requires significant investment over years to obtain the necessary infrastructure, tooling and skilled engineering expertise. New entrants must obtain extensive approvals and certifications from government regulators and OEMs, who award licenses and authorizations for each engine platform separately. As of June 30, 2024, we operate with OEM licenses and authorizations to perform critical maintenance and overhaul work on over 40 key engine platforms. These licenses and authorizations typically provide us with preferred access to OEM parts and technical information, OEM warranty support and use of the OEM name in marketing and create the foundation for the sharing of closely guarded intellectual property as well as market and customer insights. --- As of June 30, 2024, we employed approximately 7,300 people across over 50 facilities around the globe. We believe our scaled, global footprint is well-aligned to the global nature of our OEM partners and aircraft operator customers and positions us well to win business and support growing global demand for our aerospace engine maintenance services. --- Given the nature of engine maintenance and the structure of certain of our agreements, a significant portion of our costs of sales consists of new OEM materials that are included in the engines we service and are often passed through to end customers at minimal or no mark-up, impacting our reported margins. Our value creation strategy includes a combination of organic growth initiatives on our existing platforms, pursuit of new platform programs, and investment in value-accretive acquisitions. For our existing business, we focus on developing new capabilities and on ways to continuously improve operational performance to enhance our competitiveness, accelerate growth and increase margins. Over the last five years, we have invested to significantly expand our engine component repair services business, which enjoys higher margins than and is synergistic with our engine services business. We have also invested to expand our capacity and competitiveness on the CFM56 platform, the largest engine platform in the world today, including establishing a new CFM56-dedicated Center of Excellence facility in Dallas, Texas to service the growing demand on that platform. Another significant pillar to our growth is the expansion into new engine platforms that create value for us and for our customers. Since 2016, we have been awarded licenses and authorizations and established capabilities on eight new platforms across our end markets. Most notably, in March 2023 we became the first and only independent aftermarket service provider in North America to join CFM International Inc.’s (“CFM”) authorized service network for the LEAP-1A and LEAP-1B engines through the award of a long-term CFM Branded Service Agreement (“CBSA”). The LEAP-1A and LEAP-1B engines power the Airbus A320neo family and the Boeing 737MAX series aircraft, respectively, and are expected to become by far the largest engine platform family in the world, accounting for over 35% share of the world’s installed base of engines by 2033. We are one of only five total CBSA holders in the world, one of two global independent service providers, and the only independent service provider in the Americas with such a CBSA, which affords us significant competitive benefits and support from CFM, as well as the ability to develop and provide additional component repair on the engines that we service and to external parties. The CBSA has the potential to be the largest award in the Company’s history, and we believe it positions us to achieve above-market growth as LEAP engines experience a significant ramp up in demand over the next decade and beyond. Alongside this organic investment, over the past seven years we have successfully completed 11 strategic acquisitions. Our disciplined approach to evaluating and executing M&A focuses on companies that add strategic engine platforms, new capabilities and intellectual property, and reach into targeted customers and geographies where we have an opportunity to accelerate the growth and financial performance of the combined businesses. We have a proven playbook for integrating new acquisitions and achieving significant synergies, which has enabled us to acquire businesses at attractive valuations on a post-synergy basis. We operate in highly fragmented markets, which has historically provided ample acquisition opportunities to grow and enhance our platform and achieve compounding returns. On August 23, 2024, we completed our most recent acquisition through our purchase of Aero Turbine Inc. (“Aero Turbine”), a provider of engine component repair and other value-added engine aftermarket services for U.S. and international customers. The acquisition was funded with borrowings under the ABL Credit Facility, which was repaid on September 6, 2024 with incremental borrowings from the 2024 Term Loan B-1 Facility and the 2024 Term Loan B-2 Facility. Aero Turbine adds highly complementary component repair and source approval request (“SAR”) capabilities on strategic military platforms and generated revenues and net income of $70.1 million and $14.3 million, respectively, during the year ended December 31, 2023. We expect to report Aero Turbine within our Component Repair Services segment. StandardAero, Inc. is the issuer in this offering and is a Delaware corporation incorporated on September 5, 2018. Our principal executive office is located at 6710 North Scottsdale Road, Suite 250, Scottsdale, AZ.
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The Midas or Firestone Complete Auto Care for jet engines and aircraft components.
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- Engine Maintenance, Repair, and Overhaul (MRO): This service involves the inspection, repair, and complete overhaul of various aircraft engines for commercial, business, and military aviation sectors.
- Airframe MRO: StandardAero provides comprehensive maintenance, repair, and overhaul services for aircraft structures, including inspections, structural repairs, modifications, and upgrades.
- Component & Auxiliary Power Unit (APU) MRO: This includes specialized MRO services for a wide range of aircraft components, accessories, and auxiliary power units that provide essential aircraft power on the ground.
- Parts Distribution & Leasing: StandardAero offers the sale and leasing of aircraft engines, APUs, and a vast inventory of aircraft components and parts to support customer operations.
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StandardAero (symbol: SARO) sells primarily to other companies. Based on their public filings, StandardAero serves a diverse base of approximately 2,500 customers globally. No single customer accounted for more than 5% of their total revenue for the year ended December 31, 2023, and their top 10 customers collectively accounted for approximately 25% of total revenue. As such, StandardAero does not disclose specific individual major customer names due to the highly diversified nature of its customer base and the lack of reliance on any single client.
Their primary customer categories, which consist of other companies, include:
- Commercial Airlines and Operators: Providing maintenance, repair, and overhaul (MRO) services for various commercial aircraft engines and airframes.
- Business Aviation Operators: Serving owners and operators of business jets and helicopters globally.
- Military and Defense Organizations: Offering MRO solutions for military fixed-wing and rotary-wing aircraft, engines, and components.
- Energy and Industrial Companies: Providing MRO services for industrial gas turbines used in power generation, oil & gas, and other industrial applications.
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- Rolls-Royce (RR.)
- Pratt & Whitney (RTX)
- GE Aerospace (GE)
- Honeywell International Inc. (HON)
- Safran S. A. (SAF)
- Collins Aerospace (RTX)
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Russell Ford, Chairman and Chief Executive Officer
Russell Ford was appointed Chief Executive Officer of StandardAero in October 2013 and subsequently elected as Chairman of the Board in April 2019. With over 30 years of experience in the aerospace industry, Mr. Ford previously held various executive roles at Precision Castparts Corporation, including President of Carlton Forge Works and Dickson Test Group. Mr. Ford has a pattern of managing companies backed by private equity firms, having served as President and Chief Executive Officer for ClearEdge Power Inc. and Prestolite Electric Inc., and as Chief Operating Officer for Holley Performance Products Inc., all of which were private equity-backed. Prior to his leadership roles in the private equity business community, he served as Senior Vice President of Operations at Lockheed Martin Corporation and as General Manager for the Industrial and Marine Engine Division of AlliedSignal Inc. He also held engineering and management positions at Bell Helicopter and AT&T. Under his leadership, StandardAero was listed on the New York Stock Exchange in 2024.
Daniel Satterfield, Chief Financial Officer
Daniel Satterfield was appointed Chief Financial Officer in January 2023. Prior to joining StandardAero, Mr. Satterfield served as Chief Financial Officer for Honeywell Aerospace from December 2018 to December 2022. He has also held senior executive financial leadership roles at Gates Corporation, Eaton, Cooper Industries, and Siemens. Mr. Satterfield possesses more than 30 years of international management experience, delivering leadership in growth, productivity, acquisition integration, financial reporting, and complex accounting. He holds a Bachelor of Business Administration degree, majoring in accounting, from the University of Georgia and is a Certified Public Accountant.
Kimberly Ernzen, Chief Operating Officer
Kimberly Ernzen was appointed Chief Operating Officer in June 2024. Before this role, she served as President of Naval Power at Raytheon Technologies.
Lewis Prebble, President, Engine Services – Airlines & Fleets
Lewis Prebble was appointed President of Airlines & Fleets in April 2021. Prior to joining StandardAero, Mr. Prebble served as Senior Vice President for the Americas at Rolls-Royce from February 2014 to March 2021. He has more than 25 years of aerospace experience, having held multiple executive positions at Rolls-Royce, including Senior Vice President, Customer Business – Bombardier, Vice President, Customer Business – Americas, and Head of Business Development & Marketing, Services and Sales Director – Asia Pacific.
Anthony Brancato, President, Engine Services – Business Aviation
Anthony Brancato was appointed President of Business Aviation in January 2021. He joined StandardAero in February 2017, initially serving as President, Associated Air Center and later as Senior Vice President, Integration. Before his time at StandardAero, Mr. Brancato held executive roles with Honeywell Aerospace, including Vice President of Global Business Aviation Aftermarket.
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The key risks to StandardAero's business (SARO) include supply chain constraints, labor shortages, and intense market competition.
- Supply Chain Constraints: StandardAero faces ongoing challenges due to supply chain disruptions and parts shortages, particularly for critical engine components like those for LEAP and PW1000G engines. These delays can impact turnaround times for maintenance, repair, and overhaul (MRO) services, affecting the company's ability to provide timely support and potentially impacting its throughput across various markets.
- Labor Shortages: The aerospace MRO industry, including StandardAero, is experiencing a significant shortage of skilled aviation mechanics and an aging workforce. This presents a considerable challenge for recruiting and retaining talent, which can hinder the company's operational capacity and ability to meet demand.
- Intense Market Competition: StandardAero operates in a highly competitive aviation MRO industry with other major players such as GE Aviation and Rolls-Royce, as well as numerous smaller, specialized repair providers. The company's ability to maintain and grow its market share is dependent on factors like service quality, competitive pricing, and innovation. A significant risk also lies in the potential loss or non-renewal of Original Equipment Manufacturer (OEM) authorizations or licenses, which are crucial for servicing specific engine platforms and maintaining a competitive advantage in those markets.
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StandardAero operates within the extensive aerospace Maintenance, Repair, and Overhaul (MRO) market, with its core services focused on engine and component repair, as well as airframe services. The addressable markets for StandardAero's main products and services are as follows: * Global Aviation MRO Market: The global aviation MRO market was valued at approximately USD 90.73 billion in 2024 and is projected to reach around USD 145.28 billion by 2034, growing at a compound annual growth rate (CAGR) of roughly 4.82% between 2025 and 2034. Other sources estimate the global aviation MRO market size at USD 82.94 billion in 2023, expecting it to reach USD 117.09 billion by 2030 with a 5.05% CAGR. * Global Aircraft Engine MRO Market: This segment is a significant part of StandardAero's business. The global aircraft engine MRO market was valued at USD 28.5 billion in 2024 and is projected to reach USD 45.2 billion by 2034, registering a CAGR of 4.7%. Another report indicates the global market size was USD 22.32 billion in 2024 and is expected to reach USD 33.80 billion by 2032, with a CAGR of 5.32%. Furthermore, the market was valued at USD 58.4 billion in 2024 and is expected to grow at a CAGR of 6.3% from 2024 to 2030. North America dominates this market, holding a 33.41% revenue share in 2024. * Global Aircraft Component MRO Market: StandardAero also provides component repair services. The global aircraft component MRO market reached USD 21.1 billion in 2024 and is projected to reach USD 30.7 billion by 2033, exhibiting a growth rate (CAGR) of 4.06% from 2025-2033. Other estimates place the market size at USD 86.5 billion in 2024, projected to reach approximately USD 135.5 billion by 2034, growing at a 4.7% CAGR. North America held the largest share in this market, valued at USD 30.0 billion in 2024, and is expected to reach USD 42.0 billion by 2035. * Global Aircraft Airframe MRO Market: The global aircraft airframe MRO market was estimated at USD 59.6 billion in 2024 and is projected to grow to USD 86.93 billion by 2035, with a CAGR of 3.49% from 2025-2035. North America dominates the aircraft airframe MRO market, accounting for approximately 45% of the global share.AI Analysis | Feedback
StandardAero (NYSE: SARO) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:
- Sustained Demand in Commercial Aerospace and Business Aviation: StandardAero has consistently reported double-digit revenue growth in its commercial aerospace and business aviation end markets. For instance, in the third quarter of 2025, commercial aerospace revenue increased by 17.8% year-over-year, while business aviation revenue saw a 28.0% increase. This strong demand for aftermarket services in these sectors is anticipated to continue fueling revenue expansion.
- Growth in Military and Helicopter End Markets: The company's military and helicopter segment is another robust growth area. This market experienced a 21.1% year-over-year revenue increase in Q3 2025, driven by factors such as AE 1107 engine volumes following the V-22 grounding, ongoing strength in C-130 transport aircraft programs, and the J-85 engine program, which powers the T-38 trainer. Strategic acquisitions have also contributed to this segment's performance.
- Expansion of Component Repair Services (CRS) and Strategic Acquisitions: StandardAero's Component Repair Services segment is identified as a critical growth engine, significantly boosted by strategic acquisitions. The acquisition of Aero Turbine, Inc. in August 2024 notably propelled this segment, contributing to a 31.3% surge in Q2 2025 and 20.9% growth in Q1 2025. This segment also shows a track record of strong margin performance, driven by increased volume, favorable pricing, and a beneficial product mix.
- Ramp-up of Key Platform Programs, especially the LEAP Engine Program: The LEAP engine program is a major driver of future revenue, with StandardAero projecting it to generate $1 billion annually by late 2029/2030. The company reported a near doubling of LEAP revenues from Q2 to Q3 2025. StandardAero's expertise and focus on high-growth areas like LEAP engine maintenance position it for continued success as these programs mature.
- Capacity Expansion and Operational Efficiency: Investments in capacity expansion are expected to provide compounding benefits. An example is the 70,000 square-foot expansion of a Winnipeg facility, which provides maintenance, repair, and overhaul (MRO) support for GE Aerospace CF34-3/8 and CFM International CFM56-7B turbofan engines. This, combined with operational efficiency and disciplined capital expenditure, is anticipated to drive both revenue growth and margin expansion in the coming years.
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StandardAero (SARO) became a public company, trading on the NYSE, on October 2, 2024. Therefore, comprehensive public data for capital allocation decisions prior to this date is limited. However, available information since the IPO and for the immediate preceding periods is summarized below:Share Repurchases
No information available regarding share repurchases or authorized future share repurchases.Share Issuance
- StandardAero completed its initial public offering (IPO) in October 2024, issuing and selling 53.25 million shares of common stock.
- The IPO generated net proceeds of approximately $1,202.8 million for the company, after deducting underwriting discounts, commissions, and estimated offering expenses.
Inbound Investments
- Prior to its IPO, StandardAero was a private equity-backed company.
- The net proceeds from the October 2024 IPO were primarily used to repay outstanding debt, including $475.5 million of 10.0% Senior Notes and $726.1 million of 2024 Term Loan Facilities, significantly de-levering the business.
Outbound Investments
- In August 2024, StandardAero acquired Aero Turbine, Inc. (ATI), which contributed to growth in the Component Repair Services segment.
Capital Expenditures
- StandardAero's capital efficiency is demonstrated through disciplined capital expenditure allocation.
- Capital expenditures have been focused on supporting growth, specifically in ramping volumes for LEAP and CFM56 DFW engine programs.
- Free Cash Flow is defined as cash from operating activities less capital expenditures, indicating that capital expenditures are a routine part of generating operating cash flow.
Latest Trefis Analyses
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Select ideas related to SARO. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
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| 11212025 | CNM | Core & Main | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 18.7% | 18.7% | -1.6% |
| 11212025 | VRRM | Verra Mobility | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 4.7% | 4.7% | -1.2% |
| 11212025 | LII | Lennox International | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 6.9% | 6.9% | 0.0% |
| 11212025 | ADP | Automatic Data Processing | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.6% | 2.6% | -1.2% |
| 11212025 | CW | Curtiss-Wright | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 6.0% | 6.0% | -0.4% |
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Peer Comparisons for StandardAero
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Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 29.41 |
| Mkt Cap | 2.2 |
| Rev LTM | 471 |
| Op Inc LTM | 21 |
| FCF LTM | -28 |
| FCF 3Y Avg | -1 |
| CFO LTM | 32 |
| CFO 3Y Avg | 6 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 17.8% |
| Rev Chg 3Y Avg | 56.9% |
| Rev Chg Q | 29.0% |
| QoQ Delta Rev Chg LTM | 6.3% |
| Op Mgn LTM | -101.6% |
| Op Mgn 3Y Avg | -348.6% |
| QoQ Delta Op Mgn LTM | 1.0% |
| CFO/Rev LTM | -79.1% |
| CFO/Rev 3Y Avg | -357.1% |
| FCF/Rev LTM | -90.9% |
| FCF/Rev 3Y Avg | -388.5% |
Price Behavior
Price Behavior
| Market Price | $29.41 | |
| Market Cap ($ Bil) | 9.7 | |
| First Trading Date | 10/02/2024 | |
| Distance from 52W High | -7.1% | |
| 50 Days | 200 Days | |
| DMA Price | $27.12 | $28.71 |
| DMA Trend | indeterminate | down |
| Distance from DMA | 8.4% | 2.4% |
| 3M | 1YR | |
| Volatility | 32.2% | 36.0% |
| Downside Capture | 133.75 | 106.27 |
| Upside Capture | 158.01 | 105.05 |
| Correlation (SPY) | 57.2% | 61.3% |
SARO Betas & Captures as of 11/30/2025
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.87 | 1.38 | 1.48 | 1.33 | 1.12 | -0.02 |
| Up Beta | 2.20 | 2.14 | 2.14 | 2.08 | 1.23 | 0.03 |
| Down Beta | 2.23 | 1.46 | 1.30 | 1.21 | 1.10 | -0.22 |
| Up Capture | 93% | 85% | 112% | 69% | 87% | 10% |
| Bmk +ve Days | 13 | 26 | 39 | 74 | 142 | 427 |
| Stock +ve Days | 9 | 19 | 32 | 61 | 130 | 150 |
| Down Capture | 213% | 133% | 153% | 148% | 109% | 76% |
| Bmk -ve Days | 7 | 16 | 24 | 52 | 107 | 323 |
| Stock -ve Days | 10 | 22 | 30 | 63 | 117 | 138 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
nullBased On 5-Year Data
nullBased On 10-Year Data
nullReturns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 9302025 | 11102025 | 10-Q 9/30/2025 |
| 6302025 | 8142025 | 10-Q 6/30/2025 |
| 3312025 | 5132025 | 10-Q 3/31/2025 |
| 12312024 | 3122025 | 10-K 12/31/2024 |
| 9302024 | 11132024 | 10-Q 9/30/2024 |
| 12312023 | 10022024 | 424B4 12/31/2023 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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