StandardAero Announces THIRD Quarter 2026 Results
StandardAero, Inc. (SARO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 StandardAero Announces THIRD Quarter 2026 Results Engine Services Earnings Growth Drives Guidance Raise and Company Announces $350 Million Accelerated Share Repurchase SCOTTSDALE, Arizona, November 5, 2026 (BUSINESS WIRE)-- StandardAero (NYSE: SARO) announced results
How this was made
The 30-second read
Why it matters
The revised guidance and accelerated share repurchase suggest management confidence, likely supporting the stock in the near term.
Market read
First‑report earnings and guidance update for a mid‑cap aerospace MRO firm, with a sizable buyback, offering actionable insight for traders.
What to watch
Higher fuel prices and geopolitical uncertainty could pressure margins despite revenue growth.
Engine Services earnings growth drives full-year 2026 guidance raise; company announces $350.0 million accelerated share repurchase.
Third-quarter revenue increased 4.0%, net income increased 36.2%, Adjusted EBITDA increased 15.0%, and Adjusted Diluted EPS increased 30.0%. Margin expansion was led by Engine Services, while the company raised full-year revenue, Adjusted EBITDA and Adjusted Diluted EPS guidance and expanded its share-repurchase authorization.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $1.56B | – | 4.0% |
| Cost of revenue, three months ended September 30, 2026GAAP | $1.30B | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $75.87M | – | – |
| Amortization of intangible assets, three months ended September 30, 2026GAAP | $24.97M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $161.1M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $40.50M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $120.6M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $27.76M | – | – |
| Net income, three months ended September 30, 2026GAAP | $92.80M | – | 36.2% |
| Net income margin, three months ended September 30, 2026GAAP | 6.0% | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.28 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $224.9M | – | 15.0% |
| Adjusted EBITDA Margin, three months ended September 30, 2026non-GAAP | 14.4% | – | 130 basis point increase |
| Adjusted Net Income, three months ended September 30, 2026non-GAAP | $129.8M | – | – |
| Adjusted Diluted EPS, three months ended September 30, 2026non-GAAP | $ 0.39 | – | 30.0% |
| Cash Flow from Operations, three months ended September 30, 2026GAAP | $128.9M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | −$80.95M | – | – |
| Adjusted free cash flow, three months ended September 30, 2026non-GAAP | $99.17M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $4.78B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $472.6M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $270.0M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 0.81 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $658.0M | – | – |
| Adjusted EBITDA Margin, nine months ended September 30, 2026non-GAAP | 13.8% | – | – |
| Adjusted Diluted EPS, nine months ended September 30, 2026non-GAAP | $ 1.14 | – | – |
| Cash Flow from Operations, nine months ended September 30, 2026GAAP | $81.67M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | −$164.5M | – | – |
| Adjusted free cash flow, nine months ended September 30, 2026non-GAAP | $16.13M | – | – |
| Net Debt, September 30, 2026non-GAAP | $2.31B | – | – |
| Net Debt to Adjusted EBITDA, September 30, 2026non-GAAP | 2.7x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Engine Services, three months ended September 30, 2026The change was driven primarily by volume, partially offset by the elimination of pass-through revenue. Segment Adjusted EBITDA was $ 205,063 (in thousands), versus $ 165,376 (in thousands), and Segment Adjusted EBITDA Margin was 15.0%, compared to 12.5%. | $1.37B | – | 3.5% |
| Component Repair Services, three months ended September 30, 2026The change was driven by volume. Segment Adjusted EBITDA was $ 48,639 (in thousands), versus $ 53,975 (in thousands), and Segment Adjusted EBITDA Margin was 25.8%, compared to 30.7%. | $188.7M | – | 7.3% |
Full Year 2026 outlook
- Revenue$6,525 to $6,645 million
- NoteEngine Services revenue: $5,770 to $5,870 million
- NoteComponent Repair Services revenue: $755 to $775 million
- NoteAdjusted EBITDA: $905 to $920 million
- NoteEngine Services Segment Adjusted EBITDA: $810 to $820 million
- NoteComponent Repair Services Segment Adjusted EBITDA: $205 to $210 million
- NoteAdjusted Free Cash Flow: $270 to $300 million
- NoteAdjusted Diluted Earnings Per Share: $1.57 to $1.62
- NoteCommercial Aerospace: Low-Double Digit to Mid-Teens YoY Growth
- NoteMilitary & Helicopter: Low-Double Digit YoY Growth
- NoteBusiness Aviation: High-Single Digit to Low-Double Digit YoY Growth
- NoteRevenue includes effect from the elimination of approximately $300 million in material pass-through revenue.
- NoteCommercial Aerospace end-market growth assumption excludes effect from the elimination of approximately $300 million in material pass-through revenue.
Capital returns
- On October 28, 2026, the Board approved a $560.0 million increase to the Company’s share repurchase program, bringing the total authorization to $1.0 billion.
- The Company repurchased approximately $160.1 million of its common shares to date, including $50.1 million during the third quarter of 2026.
- The Company has $850.0 million remaining under the share repurchase program.
- The Company intends to enter into an accelerated share repurchase agreement with Morgan Stanley to repurchase $350.0 million of its common shares.
- Following completion of the ASR, approximately $500.0 million will remain available under the share repurchase program.
What drove it
- Revenue growth was driven by growth across all three major end markets.
- Business aviation grew 7.4%, military and helicopter grew 7.2%, and commercial aerospace grew 1.3% compared to the prior-year period.
- Consolidated Adjusted EBITDA Margin improved primarily due to volume, mix, productivity improvements and the elimination of pass-through revenue.
- Engine Services Adjusted EBITDA growth was driven by volume, mix, productivity gains, and increase in used serviceable material.
- Component Repair Services revenue growth was driven by volume.
Concerns
- Component Repair Services Segment Adjusted EBITDA was $ 48,639 (in thousands), a variance of $ (5.3) million, or (9.9%), from $ 54.0 million; Segment Adjusted EBITDA Margin was 25.8%, a variance of -490 basis points compared to 30.7%.
- Free cash flow was $ (80,952) (in thousands) in the third quarter and $ (164,468) (in thousands) for the nine months ended September 30, 2026.
- Payments for purchase of intangible assets were $ (180,119) (in thousands) in the third quarter and $ (180,595) (in thousands) for the nine months ended September 30, 2026.
- The company cited elevated fuel prices and geopolitical uncertainty.
- The company identified risks related to substantial indebtedness, supply-chain disruptions, inflationary costs, end-market conditions, and internal-control material weaknesses in its forward-looking statements.
What to watch
- Execution against full-year 2026 revenue guidance of $6,525 to $6,645 million and Adjusted EBITDA guidance of $905 to $920 million.
- Whether Engine Services sustains volume, mix, productivity gains and increased used serviceable material contribution.
- Component Repair Services margin performance following the third-quarter decline to 25.8%.
- Delivery of Adjusted Free Cash Flow guidance of $270 to $300 million amid intangible-asset purchases.
- Completion, size and timing of the intended $350.0 million accelerated share repurchase agreement.
- Progress in deleveraging, with Net Debt to Adjusted EBITDA reported at 2.7x.
Balance sheet and cash flow
- Cash was $ 191,329 (in thousands) as of September 30, 2026, compared with $ 289,717 (in thousands) as of December 31, 2025.
- Long-term debt was $ 2,447,513 (in thousands) and long-term debt, current portion was $ 23,320 (in thousands) as of September 30, 2026.
- Debt was $ 2,499.2 million, less cash of $ 191.3 million, resulting in Net Debt of $ 2,307.9 million as of September 30, 2026.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was $ 81,671 (in thousands), compared with net cash used in operating activities of $ (6,304) (in thousands).
- Purchase of property, plant and equipment was $ (67,343) (in thousands) and payments for purchase of intangible assets were $ (180,595) (in thousands) for the nine months ended September 30, 2026.
- Repurchase of common stock was $ (150,131) (in thousands) for the nine months ended September 30, 2026.
Analysis
StandardAero reported third-quarter revenue of $1,557.4 million, up 4.0% from the prior-year quarter, with growth across business aviation, military and helicopter, and commercial aerospace. Net income rose 36.2% to $92.8 million and diluted GAAP EPS was $0.28. The revenue result was supported by 7.4% business-aviation growth, 7.2% military-and-helicopter growth and 1.3% commercial-aerospace growth.
Profitability expanded faster than revenue. Adjusted EBITDA increased 15.0% to $224.9 million and Adjusted EBITDA Margin rose 130 basis points to 14.4%, which the company attributed primarily to volume, mix, productivity improvements and the elimination of pass-through revenue. Net Income Margin increased to 6.0% from 4.5%. Adjusted Diluted EPS increased 30.0% to $0.39 from $0.30.
Engine Services remained the principal earnings driver. Segment revenue increased 3.5% to $1,368.8 million, while Segment Adjusted EBITDA increased 24.0% to $205.1 million and margin expanded 250 basis points to 15.0%. By contrast, Component Repair Services revenue increased 7.3% to $188.7 million, but Segment Adjusted EBITDA declined 9.9% to $48.6 million and margin declined 490 basis points to 25.8%, with productivity and mix cited as drivers.
Cash generation improved from the prior-year quarter, with Cash Flow from Operations of $128.9 million and Adjusted Free Cash Flow of $99.2 million. However, reported free cash flow was $80.952 million negative, reflecting $180.119 million of payments for purchase of intangible assets. For the nine months ended September 30, 2026, Cash Flow from Operations was $81.671 million, Adjusted Free Cash Flow was $16.127 million, and Net Debt to Adjusted EBITDA was 2.7x.
Management raised full-year 2026 guidance to revenue of $6,525 to $6,645 million, Adjusted EBITDA of $905 to $920 million, Adjusted Free Cash Flow of $270 to $300 million and Adjusted Diluted EPS of $1.57 to $1.62. The company also expanded the repurchase authorization to $1.0 billion, with $850.0 million remaining available, and intends to execute a $350.0 million accelerated share repurchase. The release notes that the revenue guidance includes the effect of eliminating approximately $300 million in material pass-through revenue.
Management, verbatim
Our third-quarter results demonstrate the resilience of our diversified portfolio. Despite elevated fuel prices and geopolitical uncertainty, Adjusted Diluted EPS grew 30% and Adjusted EBITDA grew 15.0% year-over-year, with record 24% Adjusted EBITDA growth in Engine Services supporting another increase to our full-year 2026 guidance.
Paul McElhinney, Chief Executive Officer
With a healthy backlog, long-term visibility and continued progress in deleveraging, we intend to enter into a $350 million accelerated share repurchase and the Board has increased our share repurchase authorization to $1.0 billion. These actions reflect our confidence in the long-term outlook for the company and commitment to disciplined capital allocation and long-term shareholder value creation.
Paul McElhinney, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported third-quarter financial metrics were not provided.
- Gross margin was not reported.
- Full-year 2026 gross-margin, operating-expense and tax-rate guidance were not provided.
- Prior full-year guidance was not provided, so actual performance versus prior guidance cannot be assessed.
- A named CFO commentary section was not provided.
- Dividend activity was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
StandardAero filed an 8‑K reporting its Q3 2026 financials and an updated full‑year outlook.
Ticker impact
StandardAero reported Q3 2026 results with higher revenue, earnings and updated full-year guidance, plus a $350M accelerated share repurchase.
likely upward pressure as investors price in stronger guidance and share repurchase activity
Guidance was revised upward and a sizable accelerated buyback was announced, both typically support the stock in the short term.
Market effects
Engine services and component repair segments show strong growth, reinforcing bullish outlook for aerospace MRO sector.
Positive earnings from a U.S. aerospace MRO firm may lift related stocks in the industrial and defense space.
Improved guidance may influence global aerospace supply chain sentiment, especially for OEMs relying on aftermarket services.
Counterpoint
If the guidance increase is already priced in, the buyback could be a short-term catalyst that fades quickly.
Key entities
- companyStandardAero, Inc.
Aerospace MRO provider that issued the earnings release and guidance update.
- financial_institutionMorgan Stanley
Counterparty for the $350M accelerated share repurchase agreement.
