StandardAero (NYSE:SARO) Q4 2025 Earnings call February 25, 2026 05:00 PM ET Speaker7Good afternoon, ladies and gentlemen. Thank you for your patience. We will get started soon.Speaker8Good afternoon. Welcome to StandardAero's fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your t ...

Q4 & FY 2025 EARNINGS PRESENTATION FEBRUARY 25, 2026 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 A ...

StandardAero, Inc. (SARO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 25, might help the stock move higher if these key numbers are better t ...

Group 1 - StandardAero (NYSE: SARO) has experienced a 21.7% increase since the last report, contrasting with a largely flat performance of the S&P 500, indicating strong growth prospects in the aerospace and defense sector [1] - The aerospace, defense, and airline analyst, Dhierin-Perkash Bechai, emphasizes the potential for investment opportunities within these industries, supported by data-informed analysis [1] - The Aerospace Forum provides access to data analytics monitors, enhancing the ability to identify and evaluate investment opportunities in the aerospace and defense sectors [1]

Core Viewpoint - StandardAero, Inc. will report its fourth quarter and full year 2025 earnings results on February 25, 2026, with a conference call scheduled for the same day to discuss the results [1]. Group 1: Earnings Release Information - The earnings release for the fourth quarter and full year 2025 will be available after market close on February 25, 2026 [1]. - A conference call to discuss the earnings results will take place at 5:00 PM ET on the same day [1]. - A live webcast of the conference call will be accessible on StandardAero's investor relations website [1]. Group 2: Company Overview - StandardAero is a leading independent provider of aerospace engine aftermarket services for both fixed- and rotary-wing aircraft [1]. - The company serves various end markets, including commercial, military, and business aviation [1]. - StandardAero offers a comprehensive suite of aftermarket solutions, including engine maintenance, repair and overhaul, and engineering solutions [1].

Company News - ASML's ADRs rose 5% after reporting orders significantly exceeding investor expectations, driven by increased demand for AI computing workloads [3][5][17] - Seagate's stock increased by 8% following a strong second-quarter earnings report that surpassed expectations, along with a positive outlook [3] - Texas Instruments gained 7% after providing a favorable outlook, indicating improved demand in industrial and data center markets [3] - AT&T's shares rose 3% after reporting fourth-quarter profit and revenue that exceeded analysts' estimates, attributed to strong broadband subscriber growth [3] - C3.ai's stock surged 15% amid reports of merger talks with Automation Anywhere [3] - F5 Inc. jumped 8% after raising its revenue forecast for the fiscal year [3] - New Oriental Education's ADRs rose 6% after beating second-quarter estimates and increasing its annual net revenue forecast [3] - Corning's shares fell 3% after reporting fourth-quarter results and providing a disappointing outlook [3] - Elevance Health dropped 6% after giving an adjusted profit forecast for 2026 that fell short of Wall Street expectations [3] - Qorvo's stock fell 10% after issuing a weaker-than-expected outlook [3] Industry Trends - The tech sector is experiencing a rally, driven by strong earnings from semiconductor and memory companies, which is boosting the AI trade [1][4][6] - The Magnificent Seven stocks are mostly higher, with Nvidia, Alphabet, and Amazon showing gains, while Meta and Apple experienced slight declines [3] - The semiconductor, memory, and storage sectors are seeing significant gains due to positive earnings reports, particularly from ASML, Seagate, and Texas Instruments [3][4] - Asian equities are also benefiting from the tech rally, with notable gains in TSMC and SK Hynix [5][13] - The demand for AI memory is driving earnings growth for companies like SK Hynix, indicating a strong market for AI-related technologies [5][14]

Core Viewpoint - StandardAero announced the pricing of a secondary offering of 50,000,000 shares of its common stock at a price of $31.00 per share, with the offering expected to close on January 29, 2026 [1][2] Offering Details - The offering is conducted by affiliates of The Carlyle Group Inc. and GIC, with all net proceeds going to the Selling Stockholders, and no shares being sold by the Company itself [1][2] - The underwriters have a 30-day option to purchase up to an additional 7,500,000 shares of common stock [1] - Joint lead book-running managers for the offering include Morgan Stanley & Co. LLC, J.P. Morgan, RBC Capital Markets, BofA Securities, Jefferies, and UBS Investment Bank [1] Share Repurchase Agreement - The Company has entered into a stock purchase agreement to repurchase $50 million of its common stock at the offering price, which is part of its existing stock repurchase program approved in December 2025 [1] - The share repurchase is expected to close concurrently with the offering on January 29, 2026, and the repurchased shares will no longer be outstanding after the offering [1] Financial Performance Estimates - Preliminary estimated results for the year ended December 31, 2025, indicate expected revenue between $6,053 million and $6,083 million, net income between $270 million and $280 million, and adjusted EBITDA between $806 million and $812 million [2]

Core Viewpoint - StandardAero, Inc. announced that two of its stockholders, affiliates of The Carlyle Group Inc. and GIC, plan to offer and sell a total of 50,000,000 shares of the Company's common stock in an underwritten public offering [1] Group 1 - The shares being offered are part of StandardAero's common stock, with a par value of $0.01 per share [1] - The offering is conducted under StandardAero's shelf registration statement filed with the Securities and Exchange Commission [1]

Core Viewpoint - StandardAero, Inc. has announced preliminary estimated financial results for the year ended December 31, 2025, indicating significant growth in revenue and net income compared to the previous year [6][8]. Financial Results Summary - Estimated revenue for the year ended December 31, 2025, is projected to be between $6,053.0 million and $6,083.0 million, reflecting an increase of approximately $815.8 million to $845.8 million, or 15.6% to 16.1%, compared to $5,237.2 million in the prior year [6][8]. - Estimated net income is expected to be between $270.0 million and $280.0 million, a substantial increase from $11.0 million in the previous year [6][8]. - Adjusted EBITDA is projected to be between $806.0 million and $812.0 million, representing an increase of $115.5 million to $121.5 million, or 16.7% to 17.6%, compared to $690.5 million for the prior year [7][8]. - Cash Flow from Operations is estimated to be between $310.0 million and $320.0 million, compared to $76.3 million for the prior year, indicating an increase of $233.7 million to $243.7 million [7][8]. - Free Cash Flow is expected to be between $200.0 million and $210.0 million, a significant improvement from a cash use of $45.0 million in the previous year, representing an increase of $245.0 million to $255.0 million [9][8]. Additional Financial Metrics - The midpoint reconciliation of net income to Adjusted EBITDA shows a projected net income of $275.0 million for 2025, compared to $11.0 million in 2024, with an Adjusted EBITDA margin of 13.3% for 2025 versus 13.2% for 2024 [9]. - The reconciliation of Cash Flow from Operations to Free Cash Flow indicates a projected Cash Flow from Operations of $315.0 million for 2025, compared to $76.3 million for 2024, leading to a Free Cash Flow of $205.0 million for 2025, up from a negative $45.1 million in 2024 [12]. Company Overview - StandardAero is a leading independent provider of aerospace engine aftermarket services for both fixed- and rotary-wing aircraft, serving commercial, military, and business aviation markets [13]. - The company offers a comprehensive suite of aftermarket solutions, including engine maintenance, repair, overhaul, and engineering solutions [13].

Revenue and Income Projections - Revenue for the year ended December 31, 2025 is estimated to be between $6,053.0 million and $6,083.0 million, representing an increase of approximately 15.6% to 16.1% compared to $5,237.2 million in the prior year[7] - Net income is expected to be between $270.0 million and $280.0 million, a significant increase from $11.0 million in the previous year[7] EBITDA and Cash Flow Estimates - Adjusted EBITDA is projected to be between $806.0 million and $812.0 million, reflecting an increase of 16.7% to 17.6% from $690.5 million in the prior year[8] - Cash Flow from Operations is estimated to be between $310.0 million and $320.0 million, compared to $76.3 million for the prior year, indicating an increase of $233.7 million to $243.7 million[8] - Free Cash Flow is expected to be between $200.0 million and $210.0 million, a turnaround from a cash use of $45.0 million in the previous year, representing an increase of $245.0 million to $255.0 million[9] - The midpoint reconciliation of net income to Adjusted EBITDA shows a net income of $275.0 million and an Adjusted EBITDA of $809.0 million, resulting in an Adjusted EBITDA Margin of 13.3%[10] - The Company anticipates a significant increase in cash flow metrics, with Free Cash Flow projected at $205.0 million compared to a negative $45.1 million in the prior year[14] Financial Reporting and Guidance - The Company emphasizes that these preliminary estimates are subject to revision and may differ materially from actual results due to ongoing financial closing processes[3] - Management highlights the importance of non-GAAP financial measures such as Adjusted EBITDA and Free Cash Flow for evaluating business operations and financial health[17] - The Company plans to provide a full disclosure of its 4Q 2025 and full-year 2025 results, along with its 2026 outlook, in the following month[2]