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Dec 31, 2025
StandardAero Inc Q4 2025 Earnings Report
StandardAero Inc Q4 2025 Earnings Report
Key Takeaways
StandardAero delivered a strong fourth quarter with revenue growth of 13.5% and a significant turnaround in profitability, reporting net income of $78.6 million compared to a loss in the prior year. The results were driven by robust demand in the commercial aerospace sector, which offset temporary headwinds in the military segment caused by a U.S. government shutdown.
Revenue grew 13.5% to $1.6 billion in Q4, primarily fueled by a 21% increase in the commercial aerospace end market.
Net income reached $78.6 million in the quarter, a substantial improvement from the $14.1 million net loss reported in Q4 2024.
Free Cash Flow for the quarter was exceptionally strong at $307.7 million, compared to $56.9 million in the prior year period.
The Engine Services segment saw margin expansion of 60 basis points due to favorable mix and productivity gains.
Revenue by Segment
Forward Guidance
StandardAero expects continued double-digit earnings growth in 2026, supported by strong market fundamentals and a robust backlog.
Positive Outlook
- Full year 2026 revenue guidance of $6.275 billion to $6.425 billion.
- Expected Adjusted EBITDA between $870 million and $905 million.
- Commercial Aerospace end market projected to grow in the low-double digits to mid-teens.
- Anticipated Adjusted EPS of $1.35 to $1.45.
- Free Cash Flow guidance of $270 million to $300 million.
Challenges Ahead
- Exclusion of $300 to $400 million in material pass-through revenue from guidance figures.
- Potential for continued inflationary pressure on labor and raw materials.
- Risks related to supply chain disruptions.
- Dependence on a small number of customers for a significant portion of revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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