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

Core Thesis - StandardAero, Inc. (SARO) presents a nuanced investment opportunity despite recent market underperformance, with strong revenue and EBITDA growth, and raised guidance [2][4] Financial Performance - As of October 8th, SARO's share was trading at $27.17, with trailing and forward P/E ratios of 67.62 and 23.81 respectively [1] - The company has experienced weak free cash flow conversion, which has contributed to its stock lagging behind [2] Growth Drivers - SARO benefits from long-term growth visibility, driven by high single-digit to low double-digit expansion in LEAP engine MRO demand, share gains in the mature CFM56 platform, and growth in its component repair business [3] - The company's margin profile is expected to outperform expectations due to efficiency improvements and a favorable mix from higher-margin LEAP work [3] Market Position and Outlook - SARO is positioned to benefit from both structural and cyclical growth in aerospace maintenance, supported by robust secular tailwinds and operational leverage [4] - As MRO visibility strengthens and secondary share overhang diminishes, SARO's stock has potential for rerating, making it a compelling long-term opportunity in the aerospace maintenance sector [4]