StandardAero (NYSE:SARO) Releases Earnings Results, Beats Expectations By $0.08 EPS

StandardAero (NYSE:SARO) posted its quarterly earnings results on Thursday. The company reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.08, FiscalAI reports. The firm had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.59 billion. StandardAero had a return on equity of 12.36% and a net margin of 4.71%.The business’s quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.20 EPS. StandardAero updated its FY 2026 guidance to 1.500-1.570 EPS.

Here are the key takeaways from StandardAero’s conference call:

• Strong second-quarter results: Revenue increased 4.6% year over year to $1.6 billion, while adjusted EBITDA rose 12.3% to $230 million and adjusted EBITDA margin reached a record 14.4%. Free cash flow was positive at $50 million, and adjusted EPS increased 24% to $0.40.
• 2026 guidance was raised: Management increased revenue guidance to $6.375 billion-$6.5 billion, adjusted EBITDA guidance to $885 million-$910 million, and adjusted EPS guidance to $1.50-$1.57. The company maintained its adjusted free cash flow outlook of $270 million-$300 million.
• Growth investments are gaining traction: The LEAP and CFM56 Dallas-Fort Worth programs reached profitability in the quarter, while a $180 million license expansion is expected to generate approximately $25 million of annual adjusted EBITDA at full run rate. StandardAero also completed its Unified Turbines acquisition and repurchased $40 million of shares during the quarter.
• Component Repair Services faced near-term margin pressure: CRS adjusted EBITDA margin fell to 26.3% from 29.0% due to work migration, employee ramp inefficiencies, and unfavorable military-platform timing. Management expects the pressure to ease in the second half and reiterated its full-year CRS outlook.
• Demand remains resilient despite supply-chain and fuel-price risks: Management reported no meaningful deterioration in supply-chain conditions or commercial demand from elevated jet fuel prices, but military revenue declined 3% in the quarter because of platform delays. The company expects military and helicopter growth to accelerate in the second half of 2026.

StandardAero Trading Down 2.8%

Shares of SARO traded down $0.86 during mid-day trading on Thursday, reaching $30.15. 4,570,482 shares of the company were exchanged, compared to its average volume of 3,123,144. The business has a 50 day simple moving average of $27.91 and a two-hundred day simple moving average of $28.02. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.59 and a current ratio of 2.12. The stock has a market capitalization of $10.02 billion, a PE ratio of 34.27 and a beta of 0.92. StandardAero has a 52 week low of $23.83 and a 52 week high of $34.48.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Morgan Stanley set a $31.00 price objective on shares of StandardAero in a research note on Wednesday, July 15th. Zacks Research lowered shares of StandardAero from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 12th. Susquehanna lowered their price objective on shares of StandardAero from $40.00 to $37.00 and set a “positive” rating for the company in a research report on Monday, May 11th. Wall Street Zen downgraded shares of StandardAero from a “buy” rating to a “hold” rating in a research note on Sunday, May 17th. Finally, Jefferies Financial Group cut shares of StandardAero from a “buy” rating to a “hold” rating and lowered their price objective for the stock from $34.00 to $30.00 in a research report on Tuesday, June 2nd. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $34.00.

StandardAero News Summary

Here are the key news stories impacting StandardAero this week:

• Positive Sentiment: Quarterly earnings beat expectations. StandardAero reported second-quarter EPS of $0.40, above estimates ranging from $0.32 to $0.35 and double the $0.20 reported a year earlier. Revenue increased 4.6% year over year to $1.60 billion, slightly exceeding the $1.59 billion consensus. StandardAero Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year guidance was raised well above analyst expectations. The company projected fiscal 2026 EPS of $1.50 to $1.57, compared with a prior consensus estimate of $1.23. Revenue guidance of $6.4 billion to $6.5 billion was broadly in line with expectations, indicating that the main upside is coming from profitability and execution. StandardAero Earnings Report
• Neutral Sentiment: Analyst sentiment remains favorable but mixed. StandardAero has a “Moderate Buy” consensus rating and an average target price of $34, although Jefferies and Zacks previously downgraded the stock to “Hold.” The shares trade at a relatively elevated valuation, with a price-to-earnings ratio above 34.
• Negative Sentiment: CEO selling may be weighing on sentiment. CEO Russell Wayne Ford sold 10,969 shares for approximately $330,000 on August 3 and 40,000 shares for about $1.21 million on August 4. These transactions reduced his direct holdings, although he still owns a substantial stake. StandardAero CEO Insider Selling

Insider Buying and Selling

In other StandardAero news, CEO Russell Wayne Ford sold 40,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $30.24, for a total transaction of $1,209,600.00. Following the completion of the sale, the chief executive officer owned 395,986 shares of the company’s stock, valued at approximately $11,974,616.64. This represents a 9.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold 130,969 shares of company stock valued at $3,965,909 in the last quarter. Corporate insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On StandardAero

A number of institutional investors have recently modified their holdings of SARO. Comerica Bank acquired a new position in StandardAero in the first quarter valued at $26,000. Danske Bank A S bought a new position in shares of StandardAero in the 3rd quarter worth about $82,000. Parallel Advisors LLC lifted its stake in shares of StandardAero by 210.3% in the 4th quarter. Parallel Advisors LLC now owns 3,050 shares of the company’s stock valued at $87,000 after purchasing an additional 2,067 shares during the period. Aster Capital Management DIFC Ltd acquired a new stake in StandardAero during the fourth quarter worth approximately $105,000. Finally, US Bancorp DE increased its holdings in StandardAero by 46.4% in the third quarter. US Bancorp DE now owns 4,506 shares of the company’s stock worth $123,000 after purchasing an additional 1,428 shares in the last quarter.

StandardAero Company Profile

StandardAero is a global aerospace maintenance, repair and overhaul (MRO) provider specializing in gas turbine engines, auxiliary power units (APUs), airframe components and oil & gas rotating equipment. The company offers a full suite of technical services including engine repair and overhaul, component repair, accessory maintenance, parts manufacturing and on-site field support. Its customer base spans commercial airlines, business and general aviation operators, regional carriers, original equipment manufacturers (OEMs) and defense organizations.

With roots dating back to 1911, StandardAero has grown through strategic acquisitions and organic expansion to become one of the largest independent MRO providers in the industry.