Revenue Growth - Fourth Quarter 2024 revenue was $1,409.6 million, a 21.8% increase from $1,157.8 million in the prior year period, driven by a 33% growth in the commercial aerospace market[5] - Full Year 2024 revenue reached $5,237.2 million, a 14.8% increase compared to $4,563.3 million in the prior year, supported by a 25% increase in the commercial aerospace market[13] - Engine Services segment revenue for Full Year 2024 increased 14.7% to $4,644.8 million, driven by a 26% increase in the commercial aerospace market[16] - Component Repair Services segment revenue for Full Year 2024 increased 15.4% to $592.4 million, with a 17% increase in the commercial aerospace end market[19] - Revenue for Q4 2024 reached $1,409.6 million, a 21.7% increase from $1,157.8 million in Q4 2023[45] - Total revenue for the year ended December 31, 2024, was $5,237.2 million, a 14.8% increase from $4,563.3 million in 2023[51] Profitability and Income - Adjusted EBITDA for the Fourth Quarter 2024 increased 37.2% year-over-year to $186.2 million, with an Adjusted EBITDA margin of 13.2%, up 150 basis points from the prior year[6][8] - Net income for Full Year 2024 was $11.0 million, a significant recovery from a net loss of $35.1 million in the prior year[14] - Operating income for the year ended December 31, 2024, was $403.2 million, up 19.5% from $337.4 million in 2023[45] - The company reported a basic loss per share of $0.04 for Q4 2024, compared to a loss of $0.02 in Q4 2023[45] - Profit before tax for the year ended December 31, 2023, was $5.1 million, compared to a loss of $35.1 million in 2022[54] Financial Position and Debt Management - The company completed a $1.7 billion IPO, generating net proceeds of approximately $1,202.8 million, which were used to pay down debt and improve the capital structure[6][21] - The Net Debt to Adjusted EBITDA Leverage Ratio improved to 3.1x as of December 31, 2024, reflecting a stronger balance sheet post-IPO[24] - Long-term debt decreased to $2,207,977 thousand in 2024 from $3,172,108 thousand in 2023, a reduction of about 30.4%[43] - Total liabilities decreased to $3,840,197 thousand in 2024 from $4,612,690 thousand in 2023, indicating a decline of approximately 16.7%[43] - Interest expense for the year was $282.5 million, down from $309.6 million in 2023, indicating improved debt management[45] Asset Growth - Total assets increased to $6,213,601 thousand as of December 31, 2024, compared to $5,759,402 thousand in 2023, reflecting a growth of approximately 7.9%[43] - Current assets rose to $2,485,134 thousand in 2024, up from $2,135,770 thousand in 2023, marking an increase of about 16.4%[43] - Cash balance increased significantly to $102,581 thousand in 2024 from $57,982 thousand in 2023, representing a growth of approximately 76.8%[43] - Stockholders' equity increased to $2,373,404 thousand in 2024, up from $1,146,712 thousand in 2023, reflecting a growth of about 106.5%[43] Future Guidance and Investments - Full Year 2025 revenue guidance is set between $5,800 million and $5,950 million, with expectations of continued double-digit growth in both Engine Services and Component Repair Services segments[26] - Major platform expansion investments for Full Year 2025 are projected at $90 million, supporting ongoing growth initiatives[26] - The company plans to continue monitoring market conditions and adjusting strategies accordingly to enhance growth and operational efficiency[32] - The company is focusing on business transformation costs related to the LEAP engine line and expanding CFM56 capabilities, indicating ongoing investment in new technologies[49] - The company plans to continue expanding its CFM56 capabilities into Dallas, Texas, as part of its ongoing product industrialization efforts[54] Non-GAAP Measures and Operational Performance - Adjusted EBITDA and Adjusted EBITDA Margin are key metrics for evaluating operational performance, although specific forward-looking figures are not provided[40] - The company emphasizes the importance of non-GAAP financial measures for understanding financial condition and operational results[36] - Management acknowledges the limitations of non-GAAP measures and advises against relying solely on them for evaluating business performance[38]

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]