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 ...

Core Viewpoint - StandardAero, Inc. has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, indicating that revisions in earnings estimates can lead to significant price changes [4][6]. - Rising earnings estimates for StandardAero suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of generating substantial returns, particularly for Zacks Rank 1 stocks [7][9]. - StandardAero's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for StandardAero - For the fiscal year ending December 2025, StandardAero is expected to earn $0.87 per share, reflecting a 70.6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for StandardAero has increased by 1.2%, indicating positive sentiment among analysts [8].

Introductory Note [Basis of Presentation](index=3&type=section&id=Basis%20of%20Presentation) The company operates through Engine Services and Component Repair segments and is majority-owned by Carlyle and GIC post-IPO - The company's business is organized into two primary reportable segments: Engine Services, which provides comprehensive aftermarket services for gas turbine engines, and Component Repair Services, which focuses on engine piece part and accessory repair[9](index=9&type=chunk) - Following its IPO and restructuring in October 2024, the company's major shareholders are **Carlyle (62.8%)** and **GIC (14.2%)**[10](index=10&type=chunk) [Summary Risk Factors](index=6&type=section&id=Summary%20Risk%20Factors) The company faces risks from industry cyclicality, supply chain issues, its controlled status, and material weaknesses in internal controls - Key operational risks include dependency on the commercial and business aviation industries, fluctuations in military spending, supply chain disruptions, inflation, and intense market competition[18](index=18&type=chunk) - Significant financial and corporate governance risks include the company's ability to remediate identified material weaknesses in internal controls, manage substantial indebtedness, and navigate its status as a "controlled company"[18](index=18&type=chunk) Forward-Looking Statements [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to risks and uncertainties, covered by safe harbor provisions - The report includes forward-looking statements concerning future financial performance, business strategy, and operational plans, intended to be covered by safe harbor provisions[20](index=20&type=chunk) - These predictions are based on current expectations and are subject to significant risks and uncertainties, meaning actual results could differ materially; the company does not plan to publicly update these statements unless required by law[21](index=21&type=chunk)[23](index=23&type=chunk) PART I [Business](index=8&type=section&id=Item%201.%20Business) StandardAero is a leading independent provider of aerospace engine aftermarket services with significant revenue from long-term agreements - The company is a leading independent provider of aerospace engine aftermarket services, with a comprehensive suite of solutions including maintenance, repair, and overhaul (MRO) for fixed and rotary wing aircraft[26](index=26&type=chunk) - The company holds exclusive or semi-exclusive licenses from OEMs for several key engine platforms, including certain Rolls-Royce, Honeywell, and Safran engines, and is the first independent provider in the Americas with a license for CFM International's LEAP engines[28](index=28&type=chunk) Customer Concentration (FY 2022-2024) | Year | Revenue from Top 4 OEM Customers | | :--- | :--- | | 2024 | 41% | | 2023 | 43% | | 2022 | 45% | - As of December 31, 2024, the company had approximately **7,700 employees**, an increase from 7,300 in the prior year; the workforce is predominantly non-unionized[35](index=35&type=chunk) - The aerospace and defense industries are highly regulated by agencies such as the FAA, requiring stringent compliance for all maintenance, repair, and overhaul activities[42](index=42&type=chunk) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces extensive risks across its business, finances, and operations, including industry cyclicality and material weaknesses in internal controls [Risks Related to Our Business and Industry](index=12&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) Performance is tied to cyclical aviation markets, military spending, supply chain stability, and a concentrated customer base - The business is highly susceptible to factors impacting the commercial and business aviation industries, such as economic downturns, geopolitical events, and reduced flight activity, which can decrease demand for aftermarket services[52](index=52&type=chunk)[53](index=53&type=chunk) - Revenue from military end-users accounted for **$993.4 million (19.0%) in 2024**, making the company vulnerable to decreases in government defense budgets, spending priorities, or outsourcing[56](index=56&type=chunk) - The company depends on a sufficient supply of parts from OEMs and other suppliers; global supply chain disruptions have caused and could continue to cause material shortages, delivery delays, and increased costs[60](index=60&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) - The market is highly competitive, with rivals including service divisions of major OEMs (GE, Pratt & Whitney, Rolls Royce), other independent providers, and in-house airline maintenance divisions[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - A significant portion of revenue is derived from a small number of customers; in 2024, the top four OEM customers accounted for approximately **41% of revenue**, creating risk if any of these customers reduce their business[81](index=81&type=chunk) [Risks Related to Financial and Accounting Matters](index=21&type=section&id=Risks%20Related%20to%20Financial%20and%20Accounting%20Matters) The company has identified material weaknesses in its internal controls, creating a risk of material misstatement in financial reports - The company identified **material weaknesses** in its internal control over financial reporting, specifically in the areas of control environment, risk assessment, monitoring, information and communication, written policies, and IT general controls[101](index=101&type=chunk)[103](index=103&type=chunk) - A remediation plan is being implemented to address these weaknesses, which includes hiring additional accounting and IT personnel, developing monitoring controls, and improving IT control design and testing[102](index=102&type=chunk) - Failure to effectively remediate these material weaknesses could impair the ability to accurately report financial results, diminish investor confidence, and potentially lead to litigation or regulatory penalties[100](index=100&type=chunk)[104](index=104&type=chunk) [Risks Related to Information Technology, Intellectual Property and Cybersecurity](index=23&type=section&id=Risks%20Related%20to%20Information%20Technology%2C%20Intellectual%20Property%20and%20Cybersecurity) The company faces significant cybersecurity threats and must comply with stringent, evolving government and data privacy regulations - The company regularly experiences evolving cyber-based attacks from various threat actors, which could lead to data breaches, production downtimes, and financial losses[113](index=113&type=chunk)[114](index=114&type=chunk) - As a DoD contractor, the company must comply with DFARS and will be subject to the upcoming **Cybersecurity Maturity Model Certification (CMMC)** program; failure to achieve certification could restrict the ability to win or perform on DoD contracts[117](index=117&type=chunk)[118](index=118&type=chunk) - The company is subject to a variety of evolving federal, state, and foreign data privacy laws, such as the **California Consumer Privacy Act (CCPA)** and Europe's **General Data Protection Regulation (GDPR)**, which impose significant compliance costs and potential liabilities[120](index=120&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) - Disruptions to critical IT systems, whether from cyberattacks, equipment failures, or other events, could impair the ability to provide services and harm the company's reputation and financial condition[130](index=130&type=chunk) [Risks Related to Government Regulation and Litigation](index=29&type=section&id=Risks%20Related%20to%20Government%20Regulation%20and%20Litigation) Operations are subject to extensive regulation, including import/export controls, FAA approvals, and international compliance risks - Changes to U.S. tariff and import/export regulations could increase costs and negatively affect business, as the company has significant operations, customers, and suppliers in the U.S., Canada, and other countries[140](index=140&type=chunk) - The business operates in a highly regulated industry and must maintain numerous regulatory approvals from authorities like the **FAA, EASA, and Transport Canada** to perform its services[141](index=141&type=chunk)[143](index=143&type=chunk) - Revenue from customers outside the U.S. and Canada represented approximately **30% of total revenue in 2024**, exposing the company to risks associated with international operations, including political instability and compliance with foreign laws like the FCPA[146](index=146&type=chunk)[147](index=147&type=chunk) - The company is subject to increasingly stringent environmental, health, and safety laws, as well as growing expectations and disclosure requirements related to **ESG matters**, which could result in substantial costs and reputational risk[150](index=150&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) [Risks Related to Management and Employees](index=35&type=section&id=Risks%20Related%20to%20Management%20and%20Employees) Success depends on retaining key personnel, managing pension liabilities, and adapting to the increased costs of being a public company - The company's success depends on retaining its senior management team and attracting highly trained technical personnel in a competitive aerospace labor market[168](index=168&type=chunk)[169](index=169&type=chunk) - The company maintains two U.K. defined benefit pension plans that were **underfunded as of December 31, 2023**, which may require future operating cash flow to cover shortfalls[174](index=174&type=chunk) - The requirements of being a public company, including compliance with the Exchange Act and Sarbanes-Oxley, have increased legal, accounting, and financial compliance costs and may strain management resources[175](index=175&type=chunk) [Risks Related to Our Indebtedness](index=37&type=section&id=Risks%20Related%20to%20Our%20Indebtedness) The company's substantial indebtedness requires significant cash for debt service and includes restrictive covenants limiting financial flexibility Total Indebtedness | Date | Total Indebtedness Outstanding | | :--- | :--- | | Dec 31, 2024 | $2,269.6 million | - The company's high level of debt could make it difficult to satisfy obligations, limit the ability to obtain additional financing, and increase vulnerability to adverse economic conditions and rising interest rates[179](index=179&type=chunk) - The New Credit Agreement imposes restrictive covenants that limit the company's ability to, among other things, incur more debt, make acquisitions, sell assets, and pay dividends[186](index=186&type=chunk) - A significant portion of the company's debt is at variable interest rates, exposing it to interest rate risk; a **1 percentage point change** in interest rates would result in an approximate **$30.0 million change** in annual interest expense on the New Senior Credit Facilities[191](index=191&type=chunk) [Risks Related to Ownership of Our Common Stock](index=41&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Stock ownership risks include price volatility and significant control by Carlyle, which makes the company a "controlled company" - **Carlyle owns approximately 62.8%** of the common stock, giving it control over management appointments, major transactions, and director elections; this concentration may create conflicts of interest with other stockholders[197](index=197&type=chunk) - The company is a **"controlled company"** under NYSE rules, allowing it to be exempt from certain corporate governance requirements, including the need for a majority-independent board and fully independent compensation and nominating committees[199](index=199&type=chunk) - Anti-takeover provisions in the company's charter and bylaws, along with Delaware law, could make it more difficult for a third party to acquire the company, even if it would be beneficial to stockholders[207](index=207&type=chunk) - The company does not currently intend to pay dividends, meaning a return on investment is solely dependent on the appreciation of the stock price[213](index=213&type=chunk) [Unresolved Staff Comments](index=47&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[221](index=221&type=chunk) [Cybersecurity](index=47&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program is guided by industry standards, with oversight from the Board's Audit Committee - The company's cybersecurity program is informed by recognized industry standards like the **NIST Cybersecurity Framework, ISO 27001, and CIS Controls**[223](index=223&type=chunk) - The Board of Directors has delegated oversight of cybersecurity risk to its Audit Committee, which oversees management's implementation of the program[226](index=226&type=chunk) - Primary responsibility for managing cybersecurity threats lies with the management team, led by the VP of Information Security and the SVP of Information Technology, both of whom have over 20 years of relevant experience[228](index=228&type=chunk)[230](index=230&type=chunk) [Properties](index=49&type=section&id=Item%202.%20Properties) The company's primary operational facilities are located in the United States, Canada, and the United Kingdom - The company's main facilities are in the U.S. (Texas, Ohio, Illinois), Canada (Winnipeg, Summerside), and the U.K. (Fleetlands, Almondbank), with a global presence in 11 countries[233](index=233&type=chunk) Top 5 Material Facilities by Production Area | Location | Production Area (Square Feet) | Use | Owned or Leased | | :--- | :--- | :--- | :--- | | Fleetlands, U.K. | 731,000 | Engine and airframe repair and overhaul | Owned | | San Antonio, Texas, U.S. | 716,000 | Engine repair and overhaul | Leased | | Winnipeg, Canada | 637,000 | Engine and component repair and overhaul | Owned/Leased | | Cincinnati, Ohio, U.S. | 460,000 | Component repair and overhaul | Leased | | Dallas, Texas, U.S. | 384,000 | Engine and component repair and overhaul | Leased | [Legal Proceedings](index=51&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings that are not expected to have a material adverse effect - The company is subject to legal proceedings in the ordinary course of business but does not anticipate any material adverse impact from them[237](index=237&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[238](index=238&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=52&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock began trading on the NYSE in October 2024, with IPO proceeds used for significant debt reduction - The company's common stock commenced trading on the NYSE under the symbol **"SARO" on October 2, 2024**; prior to this, there was no public market for the stock[241](index=241&type=chunk) - The company does not currently anticipate paying any cash dividends, planning instead to use earnings to support operations and finance growth[243](index=243&type=chunk) - The IPO on October 1, 2024, generated net proceeds of approximately **$1,202.8 million**, which were used to redeem all **$475.5 million** of Prior Senior Notes and prepay a total of **$725.6 million** of outstanding term loans[249](index=249&type=chunk)[250](index=250&type=chunk) [[Reserved]](index=53&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue grew 14.8% to $5.24 billion in FY2024, driving a return to profitability with $11.0 million in net income [Results of Operations](index=60&type=section&id=Results%20of%20Operations) Revenue grew 14.8% in 2024, leading to a net income of $11.0 million compared to a $35.1 million loss in 2023 Consolidated Results of Operations (2024 vs. 2023) | Metric | 2024 (in millions) | 2023 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $5,237.2 | $4,563.3 | 14.8% | | Operating Income | $403.3 | $337.3 | 19.6% | | Net Income (Loss) | $11.0 | $(35.1) | -131.4% | - Revenue growth was primarily driven by a **$605.9 million (24.6%) increase** in the commercial aerospace end market, reflecting higher engine usage and maintenance demand[288](index=288&type=chunk) - SG&A expense increased by $51.3 million, largely due to **$26.9 million in IPO-related costs** and a **$17.4 million one-time charge** for stock compensation expense recognized upon the IPO[291](index=291&type=chunk) - Interest expense decreased to **$282.5 million** from $309.6 million due to debt repayments using IPO proceeds and refinancing at more favorable rates[294](index=294&type=chunk) [Segment Results](index=62&type=section&id=Segment%20Results) Both the Engine Services and Component Repair Services segments experienced double-digit revenue and Adjusted EBITDA growth in 2024 Segment Performance (FY 2024 vs. FY 2023) | Segment | Metric | 2024 (in millions) | 2023 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Engine Services** | Segment Revenue | $4,644.8 | $4,049.9 | 14.7% | | | Segment Adj. EBITDA | $610.9 | $519.1 | 17.7% | | **Component Repair** | Segment Revenue | $592.4 | $513.4 | 15.4% | | | Segment Adj. EBITDA | $154.7 | $125.3 | 23.5% | - Engine Services growth was driven by increased demand in commercial aerospace and business aviation, though partially offset by supply chain delays[301](index=301&type=chunk) - Component Repair Services growth was supported by strong commercial aerospace demand and the acquisition of Aero Turbine[303](index=303&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) The company had $837.7 million in available liquidity at year-end, with total debt significantly reduced following the IPO Key Liquidity and Capital Metrics | Metric (in millions) | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Cash | $102.6 | $58.0 | | Net Working Capital | $1,211.6 | $1,066.3 | | Total Debt | $2,231.4 | $3,198.8 | | Total Stockholders' Equity | $2,373.4 | $1,146.7 | Consolidated Cash Flow Summary (FY 2024) | Cash Flow Activity (in millions) | Amount | | :--- | :--- | | Net cash provided by operating activities | $76.3 | | Net cash used in investing activities | $(235.5) | | Net cash provided by financing activities | $203.8 | - Net cash from financing activities was primarily driven by **$1,202.8 million in IPO proceeds** and **$3,247.0 million in new debt issuance**, offset by **$4,235.5 million in debt repayments**[314](index=314&type=chunk) [Critical Accounting Estimates](index=65&type=section&id=Critical%20Accounting%20Estimates) Key estimates include revenue recognition, business combinations, and goodwill, with revenue recognition being highly sensitive to margin assumptions - Revenue for fixed price and time & material contracts is recognized over time using a portfolio approach based on an estimated margin by engine platform; this is a critical estimate, as a **1% change in the margin** for open work orders would have changed 2024 revenue by **$13.2 million**[321](index=321&type=chunk)[323](index=323&type=chunk) - The valuation of assets acquired and liabilities assumed in business combinations requires significant judgment, particularly for intangible assets like customer relationships, which are valued using income-based approaches[326](index=326&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk) - Goodwill is tested for impairment annually on October 1; qualitative analyses performed for 2024 and 2023 indicated no impairment had occurred[329](index=329&type=chunk) - The company maintains a valuation allowance against deferred tax assets, which stood at **$117.7 million as of December 31, 2024**, primarily related to the realizability of interest expense carryforwards under Section 163(j)[331](index=331&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to market risks from interest rates, inflation, and foreign currency fluctuations - The company is exposed to interest rate risk from its variable-rate New Senior Secured Credit Facilities; it uses interest rate swaps and caps to manage this volatility, including a swap fixing the SOFR rate on a **$400.0 million** notional amount and caps on a **$1,500.0 million** notional amount[334](index=334&type=chunk)[335](index=335&type=chunk) - Inflation poses a risk by increasing costs of labor, equipment, and raw materials; the company attempts to offset this through price increases and operational improvements[336](index=336&type=chunk) - Foreign currency risk exists due to international operations; for the year ended December 31, 2024, approximately **2.9% of revenue** was attributable to non-U.S. Dollar currencies, and a hypothetical 10% change in the U.S. dollar's value would not have had a material effect[338](index=338&type=chunk) [Financial Statements and Supplementary Data](index=71&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements and accompanying notes for the past three fiscal years [Consolidated Financial Statements](index=75&type=section&id=Consolidated%20Financial%20Statements) The financial statements show total assets of $6.21 billion and net income of $11.0 million for fiscal year 2024 Key Financial Statement Data (FY 2024) | Metric (in thousands) | Amount | | :--- | :--- | | **Balance Sheet (as of Dec 31, 2024):** | | | Total Assets | $6,213,601 | | Total Liabilities | $3,840,197 | | Total Stockholders' Equity | $2,373,404 | | **Statement of Operations (Year ended Dec 31, 2024):** | | | Revenue | $5,237,161 | | Operating Income | $403,219 | | Net Income | $10,974 | | **Cash Flow Statement (Year ended Dec 31, 2024):** | | | Net Cash from Operating Activities | $76,330 | [Notes to Consolidated Financial Statements](index=80&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail revenue disaggregation, recent acquisitions, new debt structure, and the impact of the IPO on stock compensation Revenue by End Market (in thousands) | End Market | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Commercial Aerospace | $3,066,463 | $2,460,624 | $2,250,074 | | Military & Helicopter | $973,813 | $968,136 | $884,492 | | Business Aviation | $1,046,914 | $968,965 | $887,008 | | Other | $149,971 | $165,559 | $128,904 | - The company acquired Aero Turbine on August 23, 2024, for approximately **$132.0 million**, including contingent consideration; the acquisition is reported within the Component Repair Services segment[449](index=449&type=chunk) - On October 31, 2024, the company entered into a new credit agreement for **$2.25 billion in term loans** and a **$750 million revolving credit facility**, using the proceeds to repay and terminate prior debt facilities[480](index=480&type=chunk)[481](index=481&type=chunk) - Upon its IPO on October 2, 2024, the company began recognizing stock compensation expense for awards under its 2019 Long-Term Incentive Plan, recording **$17.4 million in 2024**; a new 2024 Incentive Award Plan was also adopted[538](index=538&type=chunk)[543](index=543&type=chunk)[549](index=549&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=128&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[597](index=597&type=chunk) [Controls and Procedures](index=128&type=section&id=Item%209A.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective as of year-end due to previously identified material weaknesses in internal control - Management concluded that disclosure controls and procedures were **not effective as of December 31, 2024**, due to material weaknesses in internal control over financial reporting[599](index=599&type=chunk) - The identified material weaknesses include deficiencies in the control environment, risk assessment processes, accounting policies and procedures, and IT general controls[601](index=601&type=chunk) - A remediation plan is in process to address these weaknesses, involving hiring, developing monitoring controls, and improving IT controls[603](index=603&type=chunk) [Other Information](index=129&type=section&id=Item%209B.%20Other%20Information) The company reports no other information required to be disclosed - None[606](index=606&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=129&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[606](index=606&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=130&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section lists the company's leadership, with further governance details incorporated by reference from the 2025 Proxy Statement Key Executive Officers | Name | Position | | :--- | :--- | | Russell Ford | Chief Executive Officer and Director | | Daniel Satterfield | Chief Financial Officer and Treasurer | | Kimberly Ernzen | Chief Operating Officer | - The company has a code of ethics applicable to all directors, officers, and employees, which is available on its website[629](index=629&type=chunk) - Further information required by this item is incorporated by reference from the company's Definitive Proxy Statement for the 2025 Annual Meeting of Stockholders[630](index=630&type=chunk) [Executive Compensation](index=132&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the company's 2025 Proxy Statement - Information is incorporated by reference from the 2025 Proxy Statement[631](index=631&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=132&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information concerning security ownership is incorporated by reference from the company's 2025 Proxy Statement - Information is incorporated by reference from the 2025 Proxy Statement[632](index=632&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=132&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information concerning related party transactions and director independence is incorporated by reference from the company's 2025 Proxy Statement - Information is incorporated by reference from the 2025 Proxy Statement[633](index=633&type=chunk) [Principal Accounting Fees and Services](index=132&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information concerning principal accounting fees and services is incorporated by reference from the company's 2025 Proxy Statement - Information is incorporated by reference from the 2025 Proxy Statement[634](index=634&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=135&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section provides an index of all exhibits filed with the report, with financial statements located in Part II, Item 8 - The consolidated financial statements are located in Part II, Item 8 of the report[637](index=637&type=chunk) - An index of exhibits filed with the report is provided, referencing key documents such as the Amended and Restated Certificate of Incorporation, the New Credit Agreement, the Stockholders Agreement, and various incentive and compensation plans[639](index=639&type=chunk)[642](index=642&type=chunk) [Form 10-K Summary](index=137&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None[644](index=644&type=chunk)

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" ...

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]