StandardAero, Inc. (SARO) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-42298 StandardAero, Inc. (Exact name of Registrant as specified in its Charter) Delaware 30-1138150 (State or other jurisdiction of i ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 23% for the year and 37% in Q4, reflecting strong growth and operational efficiency [9][30][40] - Revenue for 2024 grew by 15%, with Q4 revenue growth at 22% [28][39] - Adjusted EBITDA margin expanded by 90 basis points year-over-year [30][56] Business Line Data and Key Metrics Changes - Engine Services revenue increased by 15% to $4.6 billion, driven by strong demand in commercial aerospace [43] - Component Repair Services revenue grew by 15% to $592 million, with a 23% increase in adjusted EBITDA [45][46] - Business aviation revenue grew by 8%, while military and helicopter revenue declined by 3% due to specific platform challenges [29][43] Market Data and Key Metrics Changes - The commercial aerospace market exhibited 25% growth in 2024 and 33% growth in Q4 [9][28] - Strong demand in the aftermarket for commercial aerospace, with significant growth in both Engine Services and Component Repair Services segments [28][39] - The military and helicopter end market saw slight revenue declines, primarily due to the V-22 Osprey grounding [29][43] Company Strategy and Development Direction - The company is focused on expanding its LEAP program, with significant investments in capacity and capabilities [11][34] - Continued emphasis on component repair as a strategic driver, with plans to introduce new repairs and enhance operational efficiency [35][36] - The company aims to pursue accretive M&A opportunities to complement its existing portfolio [36][109] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across end markets, particularly in commercial aerospace [9][60] - The outlook for 2025 includes projected revenue between $5.8 billion and $5.95 billion, with continued growth expected [32][54] - Management noted that maintenance work is less affected by immediate changes in flight operations, providing stability in revenue [76] Other Important Information - The company completed its IPO in October 2024, which allowed for debt refinancing and significant interest savings [26][51] - A new 10-year agreement with GE on the CF34 platform is expected to increase annual earnings significantly [22][48] - The company is targeting long-term net leverage between 2 and 3 times to maintain financial flexibility [52] Q&A Session Summary Question: Growth in commercial aerospace and contributing factors - Management highlighted strong growth in CF34 and turboprop segments, with CFM56 expected to be a major revenue driver in 2025 [67][68] Question: Impact of airline capacity cuts on maintenance trends - Management indicated that maintenance work is typically delayed in response to changes in flight operations, providing confidence in future plans [76][77] Question: Progress on LEAP service contracts and revenue opportunities - Management noted a strong pipeline for LEAP contracts, with airlines looking to secure long-term maintenance agreements [88][90] Question: Margin dilution from LEAP and CFM56 ramp-up - Management acknowledged that while there will be some margin dilution from LEAP, overall growth in other segments will offset this [100][101] Question: M&A opportunities and integration timelines - Management expressed enthusiasm for potential CRS acquisitions and indicated a range of 6 to 24 months for integration depending on deal complexity [109][114] Question: Impact of tariffs on business - Management confirmed ongoing monitoring of tariff proposals and compliance with customs requirements, with historical exemptions expected to continue [118]

Q4 & FY 2024 EARNINGS PRESENTATION MARCH 10, 2025 1 DISCLAIMER – FORWARD LOOKING STATEMENTS & NON-GAAP DISCLOSURE This presentation contains forward-looking statements that involve substantial risks and uncertainties. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Section 27A of the Securities Act of 1933, as amended (the "Securities Act" ...

Exhibit 99.1 StandardAero Announces Fourth Quarter and Full Year 2024 Results Milestone Year with Record Performance and Continued Double-Digit Growth Outlook in 2025 SCOTTSDALE, Arizona. — (BUSINESS WIRE) — StandardAero (NYSE: SARO) announced results today for three months ended December 31, 2024 ("Fourth Quarter 2024") and full fiscal year ended December 31, 2024 ("Full Year 2024"). Fourth Quarter 2024 Highlights Full Year 2024 Highlights "We are proud to report a very strong finish to what has been a his ...

Group 1 - CCC has been awarded an IDIQ contract worth over $80 million from the U.S. Department of Defense for engine repair services by StandardAero, specifically for the 501-K34 Turbine Engines used by the U.S. Navy surface fleet [1] - StandardAero is recognized as a leading provider of Maintenance, Repair, and Overhaul (MRO) services, offering tailored solutions that extend the lifecycle of naval assets [2] - Over the past two decades, StandardAero has performed over $160 million in MRO services for the U.S. Air Force, Navy, and Army, including maintenance for Rolls-Royce T56 Series III engines and CFM56-7B engines [3] Group 2 - CCC serves as the U.S. DoD's designated contracting authority for purchases from Canada over $250,000, facilitating Canadian businesses like StandardAero to supply the U.S. DoD [4] - StandardAero's reputation for quality service is highlighted by its commitment to excellence and its ability to meet customer expectations [5] - CCC has facilitated billions in trade between Canadian businesses and governments globally, emphasizing its role in government-to-government contracting [6]

IPO and Financing - The company completed its IPO on October 2, 2024, at a price of $24.00 per share, generating net proceeds of $1,202.8 million after deducting underwriting discounts and commissions of approximately $67.1 million and estimated offering expenses of $8.1 million[140]. - The company entered into a New Credit Agreement on October 31, 2024, providing for a senior secured dollar term loan B facility of $1,630.0 million and a senior secured multicurrency revolving credit facility of up to $750.0 million[143]. - The company has a senior secured dollar term loan B facility due August 24, 2028, with an original aggregate principal amount of $1,802.5 million, which was refinanced in August 2023[207]. - The company redeemed $200.0 million of the Senior Notes on March 29, 2024, reducing the outstanding principal amount from $675.5 million[216]. - The company incurred additional 2024 Term Loans of $200.0 million on September 6, 2024, partly used to pay down advances under the ABL Credit Facility[208]. - The company is in compliance with the covenants in the Senior Secured Credit Agreements as of September 30, 2024[223]. Revenue and Performance - Revenue increased by $145.2 million, or 13%, to $1,244.6 million for the three months ended September 30, 2024, compared to $1,099.4 million for the same period in 2023[172]. - Revenue from the commercial aerospace end market rose by $116.7 million, or 19%, to $720.6 million, driven by increased demand for engine and component maintenance[172]. - Revenue from the business aviation end market increased by $32.5 million, or 15%, to $253.3 million, attributed to higher demand on serviced platforms[172]. - Revenue for the nine months ended September 30, 2024, increased by 12% to $3,827.5 million compared to $3,405.5 million for the same period in 2023[181]. - Engine Services segment revenue increased by 12% to $3,399.1 million, with a 22% increase in commercial aerospace revenue driven by higher engine maintenance demand[196]. - Component Repair Services segment revenue rose by 12% to $428.4 million, with a 20% increase in commercial aerospace revenue attributed to higher component usage[198]. Costs and Expenses - Cost of revenue increased by $110.4 million, or 12%, to $1,058.4 million, primarily due to growth in volumes leading to higher material and labor expenses[173]. - Cost of revenue rose by 12% to $3,275.3 million, driven by increased material and labor expenses due to higher volumes[182]. - Selling, general and administrative (SG&A) expenses rose to $62.9 million, a 19% increase from $53.0 million, largely due to increased personnel and professional fees related to the IPO and acquisition[174]. - Selling, general and administrative (SG&A) expenses increased by 16% to $171.7 million, primarily due to higher personnel and professional fees related to growth investments and acquisitions[183]. Profitability - Adjusted EBITDA for the three months ended September 30, 2024, was $168.4 million, compared to $133.6 million for the same period in 2023, reflecting a margin increase to 13.5%[172]. - Net income for the three months ended September 30, 2024, was $16.4 million, a significant improvement from a net loss of $17.9 million in the same period of 2023[172]. - Operating income for the nine months ended September 30, 2024, increased by 20% to $308.6 million compared to $257.5 million in 2023[181]. - Net income for the nine months ended September 30, 2024, was $25.0 million, a significant recovery from a net loss of $30.5 million in the same period of 2023[181]. Debt and Liquidity - The company had $560.2 million of available liquidity as of September 30, 2024, including $51.3 million in cash and $358.9 million available under the ABL Credit Facility[201]. - Total debt outstanding as of September 30, 2024, was $3,072.3 million, including $2,947.8 million under the 2024 Term Loan Facilities[202]. - As of September 30, 2024, the company's long-term debt stood at $3,391.4 million, an increase of 6.9% from $3,172.1 million as of December 31, 2023[203]. - The total debt agreements as of September 30, 2024, amounted to $3,469.3 million, compared to $3,259.3 million at the end of 2023, reflecting a year-over-year increase of 6.4%[203]. Market Trends and Projections - Global commercial air traffic has grown at a rate of 5.6% per annum over the last 40 years, expected to continue driving the number of aircraft in service to increase by a 3.5% CAGR from 2023 to 2042[146]. - The military aviation aftermarket is projected to grow by approximately 2-3% in 2024, with the U.S. accounting for approximately 40% of global military spend[149]. - The LEAP engine platform is expected to represent over 35% of the global fleet by 2033, driving demand for engine aftermarket services as these engines enter maintenance cycles[148]. - The company expects continued growth in revenue driven by demand in commercial aerospace and business aviation markets, despite challenges in military and helicopter segments[180]. Cash Flow - For the nine months ended September 30, 2024, net cash used in operating activities was $32.0 million, a significant improvement compared to $95.9 million for the same period in 2023[224][225]. - The net cash used in investing activities for the nine months ended September 30, 2024 was $184.1 million, primarily due to the acquisition of ATI for $114.1 million and capital expenditures of $70.4 million[227]. - Net cash provided by financing activities for the nine months ended September 30, 2024 was $209.1 million, mainly from the issuance of long-term debt totaling $765.0 million[228]. Foreign Currency and Interest Rate Risks - For the three months ended September 30, 2024, approximately $41.2 million, or 3.3%, of revenue was attributable to non-U.S. Dollar currencies, compared to $34.6 million, or 3.1%, for the same period in 2023[243]. - For the nine months ended September 30, 2024, revenue from non-U.S. Dollar currencies was $120.7 million, or 3.2%, compared to $112.5 million, or 3.3%, for the same period in 2023[243]. - The company reported a $0.8 million loss due to foreign currency transactions for the three months ended September 30, 2024, compared to a $0.4 million gain for the same period in 2023[243]. - Each 0.125% change in interest rates would result in a $3.7 million change in annual interest expense on term loan borrowings[234]. - The company entered into interest rate swap contracts to manage interest rate risk, with a notional amount decreasing from $1,000.0 million to $500.0 million[241]. - An interest rate cap contract was established to limit exposure to rising interest rates, with a capped SOFR rate of 4.45% on a notional amount of $500.0 million[241]. Inflation and Cost Management - Inflation risks are impacting costs related to labor, equipment, and raw materials, with the company striving to offset these through price increases and operational improvements[242]. - Inflation affects costs of labor, equipment, raw materials, freight, and utilities, with the company striving to offset these through price increases and cost-saving initiatives[242].

Revenue Performance - Revenue for Q3 2024 increased 13.2% year-over-year to $1,244.6 million, driven by strong performance in commercial aerospace and business aviation markets[2] - Year-to-date revenue for the nine months ended September 30, 2024, was $3,827.5 million, a 12.4% increase compared to the prior year[11] - Revenue for the three months ended September 30, 2024, was $1,244,627, an increase of 13.2% compared to $1,099,441 for the same period in 2023[29] - Revenue from external customers in Engine Services for the three months ended September 30, 2024, was $1,109,804 thousand, compared to $976,896 thousand in the same period of 2023, indicating a growth of approximately 13.5%[34] - Total segment revenue for the nine months ended September 30, 2024, reached $3,827,548 thousand, compared to $3,827,548 thousand in the same period of 2023[33] Net Income and Profitability - Net income for Q3 2024 was $16.4 million, with a net income margin of 1.3%, an increase of 3.0 percentage points from the prior year[5] - Net income for the three months ended September 30, 2024, was $16,436, compared to a net loss of $17,933 for the same period in 2023[29] - Net income for the nine months ended September 30, 2024, was $25,027 thousand, a significant improvement from a net loss of $30,502 thousand in the same period of 2023[30] - The company reported a net loss of $30.5 million for the nine months ended September 30, 2023, compared to a net income of $25.0 million for the same period in 2024[37] Adjusted EBITDA - Adjusted EBITDA rose 26.0% year-over-year to $168.4 million, with an adjusted EBITDA margin of 13.5%, up 137 basis points compared to the previous year[6] - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, adjusted for non-cash and non-recurring items, providing a clearer view of operational performance[26] - Segment Adjusted EBITDA for the nine months ended September 30, 2024, was $562,164 thousand, reflecting a strong operational performance[33] - Adjusted EBITDA margin for the nine months ended September 30, 2023, was 12.5%, an increase from 12.2% in the previous year[37] Capital Expenditures and Investments - Capital expenditures for Q3 2024 were $25.3 million, reflecting continued investment in growth initiatives, including the LEAP-1A/-1B program[6] - The company incurred capital expenditures of $(70,422) thousand for the nine months ended September 30, 2024, compared to $(35,367) thousand in the same period of 2023, reflecting increased investment in growth initiatives[30] Assets and Liabilities - Total assets increased to $6,059,146 as of September 30, 2024, compared to $5,759,402 as of December 31, 2023, reflecting a growth of 5.2%[27] - Total liabilities rose to $4,895,284 as of September 30, 2024, up from $4,612,690 as of December 31, 2023, indicating an increase of 6.1%[27] - Cash decreased to $51,265 as of September 30, 2024, from $57,982 as of December 31, 2023, a decline of 11.8%[27] - Accounts receivable increased to $621,298 as of September 30, 2024, compared to $518,334 as of December 31, 2023, representing a growth of 19.9%[27] Corporate Actions and Strategic Initiatives - The company completed a $1.7 billion IPO, generating net proceeds of approximately $1.2 billion, which were used to pay down debt[3] - The acquisition of Aero Turbine Inc. was completed for a total purchase price of up to $141.0 million, expected to contribute $25 million of adjusted EBITDA in 2025[14][15] - The company expects annual interest savings of over $130 million following the refinancing of its capital structure post-IPO[17] - The company is focusing on the business transformation of the LEAP 1A/1B engine line and expanding CFM56 capabilities, indicating a strategic push towards innovation and market expansion[32] - The company is expanding its CFM56 capabilities into Dallas, Texas, as part of its new product industrialization efforts[35] Expenses - Selling, general, and administrative expenses increased to $62,895 for the three months ended September 30, 2024, compared to $53,020 for the same period in 2023, an increase of 18.5%[29] - Corporate costs, including executive and staff functions, amounted to $57,797 thousand, impacting overall profitability[33] - The company incurred business transformation costs of $5.4 million related to the LEAP and CFM projects during the nine months ended September 30, 2023[36] - Integration costs and severance for the nine months ended September 30, 2023, totaled $2.6 million[37] - Interest expense for the nine months ended September 30, 2023, was $230.5 million, reflecting ongoing debt obligations[36]