PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents StandardAero's unaudited condensed consolidated financial statements for Q1 2025, covering balance sheets, income, equity, cash flows, and key accounting notes [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Q1 2025 saw revenue rise to **$1.44 billion** and net income to **$62.9 million**, with total assets reaching **$6.50 billion** and improved operating cash flow Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | **Revenue** | $1,435.6 | $1,235.7 | | Operating income | $128.9 | $105.5 | | Interest expense | $43.8 | $77.5 | | **Net income** | **$62.9** | **$3.2** | | **Basic EPS** | **$0.19** | **$0.01** | | **Diluted EPS** | **$0.19** | **$0.01** | Condensed Consolidated Balance Sheet Highlights | Metric | As of March 31, 2025 (in billions) | As of December 31, 2024 (in billions) | | :--- | :--- | :--- | | Cash | $0.141 | $0.103 | | Total current assets | $2.795 | $2.485 | | **Total assets** | **$6.496** | **$6.214** | | Long-term debt | $2.314 | $2.208 | | **Total liabilities** | **$4.058** | **$3.840** | | **Total stockholders' equity** | **$2.438** | **$2.373** | Condensed Consolidated Statements of Cash Flows | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | Net cash used in operating activities | $(24.0) | $(83.6) | | Net cash used in investing activities | $(40.1) | $(18.0) | | Net cash provided by financing activities | $102.4 | $77.5 | | **Net increase (decrease) in cash** | **$38.2** | **$(23.8)** | [Note 1: Nature of Operations and Basis of Presentation](index=12&type=section&id=Note%201%3A%20Nature%20of%20Operations%20and%20Basis%20of%20Presentation) StandardAero offers aircraft engine aftermarket services, completed a **$1.2 billion** IPO in October 2024, and as of March 2025, Carlyle and GIC hold **54.1%** and **12.2%** of common stock respectively - The company is an independent provider of aftermarket services for fixed and rotary wing aircraft gas turbine engines and APUs for commercial, business, and military markets[33](index=33&type=chunk) - Completed its IPO on October 2, 2024, at **$24.00 per share**, generating net proceeds of **$1.203 billion** after deducting underwriting discounts and offering expenses[37](index=37&type=chunk) - Following a secondary offering on March 26, 2025, affiliates of The Carlyle Group and GIC Private Limited own approximately **54.1%** and **12.2%** of the company's common stock, respectively[38](index=38&type=chunk) [Note 3: Revenue Recognition](index=13&type=section&id=Note%203%3A%20Revenue%20Recognition) Q1 2025 total revenue reached **$1.436 billion**, primarily from Engine Services and Commercial Aerospace, with **$1.9 billion** in remaining performance obligations Revenue by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Revenue (in millions) | Q1 2024 Revenue (in millions) | | :--- | :--- | :--- | | Engine Services | $1,268.3 | $1,097.4 | | Component Repair Services | $167.3 | $138.3 | | **Total revenue** | **$1,435.6** | **$1,235.7** | Revenue by End Market (Q1 2025 vs Q1 2024) | End Market | Q1 2025 Revenue (in millions) | Q1 2024 Revenue (in millions) | | :--- | :--- | :--- | | Commercial Aerospace | $853.0 | $722.5 | | Military & Helicopter | $249.5 | $227.1 | | Business Aviation | $283.3 | $250.9 | | Other | $49.7 | $35.2 | | **Total** | **$1,435.6** | **$1,235.7** | - As of March 31, 2025, the company has approximately **$1.9 billion** of remaining performance obligations, primarily from engine utilization contracts. About **30%** is expected to be recognized as revenue over the next two years[46](index=46&type=chunk) [Note 8: Long-Term Debt](index=17&type=section&id=Note%208%3A%20Long-Term%20Debt) As of March 31, 2025, total long-term debt was **$2.314 billion**. The company secured **$2.25 billion** in new term loan facilities and a **$750 million** revolving credit facility in October 2024, significantly reducing the weighted average interest rate to **6.6%** from **9.5%** Long-Term Debt Composition | Debt Component | As of March 31, 2025 (in billions) | As of December 31, 2024 (in billions) | | :--- | :--- | :--- | | New 2024 Term Loan Facilities | $2.244 | $2.250 | | New 2024 Revolving Credit Facility | $0.110 | — | | Finance leases & Other | $0.019 | $0.020 | | **Total Debt (Gross)** | **$2.374** | **$2.270** | | Less: Current portion, discounts, etc. | $(0.060) | $(0.062) | | **Long-term debt (Net)** | **$2.314** | **$2.208** | - On October 31, 2024, the company entered a New Credit Agreement, including **$2.25 billion** in term loans due 2031 and a **$750 million** revolving credit facility due 2029. Proceeds were used to repay prior debt facilities[57](index=57&type=chunk) - The weighted average interest rate of borrowings under senior credit agreements was **6.6%** for Q1 2025, a significant decrease from **9.5%** for Q1 2024[70](index=70&type=chunk) [Note 18: Segment Information](index=27&type=section&id=Note%2018%3A%20Segment%20Information) StandardAero operates in Engine Services and Component Repair Services. Q1 2025 saw Engine Services revenue at **$1.27 billion** and Segment Adjusted EBITDA at **$174.0 million**, while Component Repair Services reported **$167.3 million** revenue and **$47.4 million** Segment Adjusted EBITDA Segment Performance (Q1 2025 vs Q1 2024) | Segment | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | :--- | | **Engine Services** | Segment Revenue | $1,268.3 | $1,097.4 | | | Segment Adjusted EBITDA | $174.0 | $150.0 | | **Component Repair Services** | Segment Revenue | $167.3 | $138.3 | | | Segment Adjusted EBITDA | $47.4 | $35.8 | | **Total Segments** | **Total Segment Revenue** | **$1,435.6** | **$1,235.7** | | | **Total Segment Adjusted EBITDA** | **$221.4** | **$185.8** | - The company's performance is evaluated based on segment Revenue and segment Adjusted EBITDA, defined as net income before interest, taxes, depreciation, amortization, and other specified non-recurring or non-cash items[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a **16.2%** revenue increase to **$1.44 billion** and net income surge to **$62.9 million**, driven by growth and lower interest expense post-refinancing [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Q1 2025 revenue grew **16.2%** to **$1.436 billion**, with operating income up **22.2%** to **$128.9 million**, and net income surged to **$62.9 million** due to a **43.5%** decrease in interest expense Comparison of Operations (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,435.6 | $1,235.7 | $199.9 | 16.2% | | Cost of revenue | $1,217.9 | $1,054.3 | $163.6 | 15.5% | | Operating income | $128.9 | $105.5 | $23.4 | 22.2% | | Interest expense | $43.8 | $77.5 | $(33.8) | (43.5)% | | **Net income** | **$62.9** | **$3.2** | **$59.8** | **1,875.0%** | - The increase in revenue was driven by continued strength across the commercial aerospace and business aviation end markets, which grew **18.1%** and **12.9%** respectively[160](index=160&type=chunk) - Interest expense decreased by **$33.8 million (43.5%)** due to the repayment of Prior Senior notes post-IPO and entering into the New Credit Agreement with more favorable terms[164](index=164&type=chunk) [Segment Results](index=36&type=section&id=Segment%20Results) Engine Services revenue grew **15.6%** to **$1.27 billion** and Component Repair Services revenue increased **20.9%** to **$167.3 million**, boosted by the Aero Turbine acquisition Segment Performance Summary (Q1 2025) | Segment | Revenue (in millions) | Segment Adjusted EBITDA (in millions) | Segment Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | | Engine Services | $1,268.3 | $174.0 | 13.7% | | Component Repair Services | $167.3 | $47.4 | 28.3% | - Engine Services revenue growth was driven by high engine aftermarket demand in commercial aerospace and business aviation[170](index=170&type=chunk) - Component Repair Services revenue growth was primarily attributable to increased demand and **$21.9 million** of revenue from the acquisition of Aero Turbine[172](index=172&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had **$764.9 million** in available liquidity and **$2.34 billion** in total debt, with improved operating cash flow Liquidity Summary | Metric | As of March 31, 2025 (in millions) | | :--- | :--- | | Cash | $140.8 | | Available under New 2024 Revolving Credit Facility | $624.1 | | **Total Available Liquidity** | **$764.9** | Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Net cash used in operating activities | $(24.0) | $(83.6) | | Net cash used in investing activities | $(40.1) | $(18.0) | | Net cash provided by financing activities | $102.4 | $77.5 | - As of March 31, 2025, the company was in compliance with all covenants in the New Credit Agreement[180](index=180&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk on variable-rate debt via swaps and caps, addresses inflation through pricing, and considers foreign currency risk limited - Interest rate risk on floating-rate debt is mitigated using a **$400.0 million** interest rate swap (fixing SOFR at **3.71%**) and interest rate caps on a notional amount of **$1.5 billion** (capping SOFR at **4.45%** until Sep 2025, then **5.00%** until Dec 2026)[194](index=194&type=chunk) - Inflation impacts costs of labor, materials, and utilities. The company aims to pass these increases to customers through contractual provisions and price adjustments[195](index=195&type=chunk) - Foreign currency risk is limited, with only **2.4%** of revenue in Q1 2025 attributable to non-U.S. Dollar currencies. A hypothetical **10%** change in the U.S. dollar value would not have a material effect[196](index=196&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of March 31, 2025, due to material weaknesses in internal control over financial reporting, with remediation efforts underway - Management concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to existing material weaknesses[199](index=199&type=chunk) - Material weaknesses identified include deficiencies in the control environment (insufficient personnel with accounting knowledge), risk assessment, monitoring controls, and information/communication controls[203](index=203&type=chunk) - Remediation efforts are underway, including hiring more accounting and IT staff, developing better monitoring protocols, and improving the design and testing of IT controls[202](index=202&type=chunk)[204](index=204&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the normal course of business, with no expected material adverse effect on financial position - The company is involved in legal proceedings such as commercial claims, product liability, and personal injury claims, which are considered part of the normal course of business[207](index=207&type=chunk) - Reserves are established when a liability is probable and can be reasonably estimated. The company does not anticipate these proceedings will have a material adverse effect[207](index=207&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes have occurred to the risk factors disclosed in the 2024 Form 10-K[208](index=208&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or purchases of equity securities by the issuer or affiliated purchasers during the period - None[209](index=209&type=chunk) [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[210](index=210&type=chunk) [Item 4. Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[211](index=211&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20information) The company reports no other material information required to be disclosed - None[215](index=215&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents and officer certifications - Exhibits filed include corporate governance documents and required officer certifications under the Sarbanes-Oxley Act[217](index=217&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $1.4 billion, a 16% increase from $1.2 billion in Q1 2024, with 14.4% being organic growth [19] - Adjusted EBITDA rose to $198 million, up 20% from $166 million in the prior year [19] - Adjusted EBITDA margin improved to 13.8%, a 40 basis point increase compared to Q1 2024 [20] Business Line Data and Key Metrics Changes - Engine Services revenue increased by $171 million to $1.3 billion, representing 16% growth, driven by strong demand in the commercial aftermarket [21] - Component Repair Services revenue grew by 21% to $167 million, supported by the ATI acquisition, contributing $22 million [22] - Adjusted EBITDA for Component Repair Services grew 32%, with a margin expansion of 240 basis points to 28% [22] Market Data and Key Metrics Changes - Commercial aerospace grew 18% year over year, driven by strong demand across major platforms [9] - Business Aviation Group increased 13% compared to Q1 last year [10] - Military business grew 10%, aided by the AeroTurbine acquisition and growth in the J85 program [10] Company Strategy and Development Direction - The company is focused on ramping up the LEAP program and has secured additional regulatory approvals to support a broader set of airlines globally [14] - Continued investment in CFN56 and CF34 platforms, with a record quarter on the CF34 platform [15] - The company is actively pursuing M&A opportunities, with a growing pipeline of targets [17] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the strong demand in the engine aftermarket and is increasing revenue and adjusted EBITDA guidance for 2025 [18] - The estimated net impact of tariffs for 2025 is projected to be around $15 million, which has been incorporated into the updated guidance [13] - The company is well-positioned to navigate macroeconomic uncertainties and trade environment challenges [12] Other Important Information - Free cash flow was a use of $64 million in Q1, which was expected due to working capital seasonality [23] - The company’s leverage improved to 3.09 times, down from 5.7 times at the end of Q1 2024 [24] - The company exited a non-core hydraulics business to focus on higher-margin product lines [71][72] Q&A Session Summary Question: Confidence in CF34 platform growth despite U.S. Airlines' slower capacity - Management noted that maintenance activity has not seen a pullback, as engine MRO is typically the last area airlines cut back on during weak demand [33] Question: M&A environment and opportunities - Management expressed confidence in pursuing M&A opportunities, stating that the environment has become more robust with attractive targets available [36] Question: Growth drivers in Engine Services - Management highlighted military and CF34 as key drivers, with expectations for LEAP and CFM56 to contribute significantly in the future [39] Question: Margin headwinds from LEAP and CFM56 - Management confirmed that while there are margin headwinds due to initial lower margins on LEAP and CFM56, both programs are expected to be accretive long-term [48] Question: Update on ATI acquisition - The integration of ATI is progressing well, with strong revenue and margins, and it is enhancing the existing J85 program work [75][76] Question: Supply chain for LEAP parts - Management reported no significant supply chain issues for LEAP parts, as they are still in the early stages of industrialization [81] Question: Revenue seasonality - Management indicated a typical trend of revenue building from Q1 to Q2 and further into the second half of the year, supported by a diverse platform portfolio [100] Question: Repair capabilities and market potential - Management emphasized the ongoing development of repair capabilities in close coordination with OEMs, indicating a strong runway for growth in the component repair business [88]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $1.4 billion, a 16% increase from $1.2 billion in Q1 2024, with 14.4% being organic growth [18] - Adjusted EBITDA rose to $198 million, up 20% from $166 million in the prior year [18] - Adjusted EBITDA margin improved to 13.8%, a 40 basis point increase year-over-year [19] - Net income surged to $63 million compared to $3 million in the prior period, driven by increased earnings and reduced interest expenses [19] - Free cash flow was a use of $64 million, reflecting typical seasonality and investments, but improved by $38 million year-over-year [22] Business Line Data and Key Metrics Changes - Engine Services revenue increased by $171 million to $1.3 billion, representing 16% growth, driven by strong demand in the commercial aftermarket [20] - Component Repair Services revenue grew 21% to $167 million, supported by the ATI acquisition, contributing $22 million [21] - Engine Services adjusted EBITDA grew 16%, while Component Repair Services adjusted EBITDA increased by 32%, with margins expanding to 28% [21] Market Data and Key Metrics Changes - Commercial aerospace grew 18% year-over-year, with strong demand across major platforms [7] - Business Aviation Group increased 13% year-over-year, driven by demand for midsize and large cabin business aircraft [9] - Military business grew 10%, aided by the AeroTurbine acquisition and growth in the J85 program [9] Company Strategy and Development Direction - The company is focused on ramping up the LEAP program, having secured additional regulatory approvals and completed its first LEAP shop visit [13][14] - Continued investment in CFN56 and CF34 platforms, with record performance noted in the CF34 platform [14] - Expansion of engine component repair capabilities is a priority, with significant progress made in developing new LEAP repairs [15] - The company is actively pursuing M&A opportunities, with a growing pipeline of targets and a disciplined approach to capital allocation [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the commercial aftermarket, citing strong long-term demand visibility despite short-term volatility in passenger traffic [7][12] - The company raised its sales and earnings guidance for 2025, now expecting revenue between $5.825 billion and $5.975 billion and adjusted EBITDA between $775 million and $795 million [25] - Management acknowledges geopolitical and macroeconomic uncertainties but emphasizes a solid foundation for growth [26] Other Important Information - The estimated net impact of tariffs for 2025 is projected to be around $15 million, which has been incorporated into the updated guidance [12][25] - The company is managing tariff impacts through various mitigation actions, including contractual mechanisms and pricing opportunities [11] Q&A Session Summary Question: Confidence in CF34 platform growth amidst U.S. airlines' slower capacity - Management expressed confidence in maintenance activity remaining stable despite airlines' comments on passenger traffic volatility, as engine MRO is typically nondiscretionary [31] Question: M&A environment and opportunities - Management indicated that they remain active in pursuing M&A opportunities, with a robust environment and attractive targets available [34] Question: Growth drivers in Engine Services - Management highlighted military and CF34 as key growth drivers, with expectations for LEAP and CFM56 to contribute significantly in the future [36][60] Question: Margin expectations for the remainder of the year - Management noted that margin headwinds are primarily from LEAP and CFM56 growth, but they expect both programs to be accretive long-term [43] Question: Update on ATI acquisition - The integration of ATI is progressing well, with strong revenue contributions and operational synergies being realized [68] Question: Supply chain for LEAP parts - Management reported no significant supply chain issues for LEAP parts, as they are in the final industrialization phase [74] Question: Repair capabilities and market opportunities - Management emphasized a methodical approach to developing repair capabilities in close coordination with OEMs, with ongoing opportunities for expansion [80][83]

Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives, plans or cost savings in any specified time frame or at all. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we oper ...

Exhibit 99.1 StandardAero Announces First Quarter Results Strong Start to the Year, Executing on Priorities, therefore Raising FY 2025 Guidance SCOTTSDALE, Arizona. — (BUSINESS WIRE) — StandardAero (NYSE: SARO) announced results today for the three months ended March 31, 2025 ("First Quarter 2025"). Net debt, calculated as total funded debt, net of cash and cash equivalents on our balance sheet as of March 31, 2025, was $2,233.0 million compared to $3,304.4 million as of March 31, 2024. Net debt to Adjusted ...

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 favorable mix [9][30] - 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 a 26% growth in the commercial aerospace end market [43] - Component Repair Services revenue grew by 15% to $592 million, with a 17% increase in the commercial aero end market [45] - Adjusted EBITDA for Engine Services grew by 18%, while Component Repair Services saw a 23% increase in adjusted EBITDA [44][46] Market Data and Key Metrics Changes - The commercial aerospace market exhibited 25% growth in 2024 and 33% growth in Q4 [9][28] - Business aviation revenue grew by 8%, particularly strong in the HTF7000 program [29] - Military and helicopter end market revenue declined slightly by 3% due to temporary grounding of the V-22 Osprey [29][43] Company Strategy and Development Direction - The company invested over $100 million in major program initiatives to position for accelerated growth [10][11] - Focus on the LEAP program, with significant progress in industrialization and customer agreements [17][34] - Expansion of capacity in CFM56 and CF34 platforms to leverage strong demand [20][22] 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 strong demand [32][54] - Management noted that maintenance work is less affected by immediate changes in flight operations, providing stability [76] Other Important Information - The company completed its IPO in October 2024, refinancing its debt and significantly reducing leverage [26][51] - Free cash flow for Q4 improved to $57.1 million, while full-year free cash flow was negative $45 million due to one-time costs [41][46] - The company is targeting long-term net leverage between 2 and 3 times to maintain flexibility for investments [52] Q&A Session Summary Question: Growth in commercial aero and contributing factors - Management noted 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 a delayed effect on maintenance work due to flight hours already accrued, maintaining confidence in future plans [76][77] Question: Progress on LEAP service contracts and revenue opportunities - Management highlighted a strong pipeline for LEAP contracts, with airlines locking in long-term maintenance agreements [88][90] Question: Margin dilution from LEAP and CFM56 ramp-up - Management acknowledged industrialization losses for LEAP but expected significant growth in 2025 with reduced dilution [100][101] Question: M&A strategy and integration timeline - Management expressed enthusiasm for CRS acquisitions, with integration timelines varying based on deal size and complexity [109][114] Question: Impact of tariffs on business - Management confirmed ongoing monitoring of tariff proposals, with historical exemptions expected to continue [118]

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" ...