Is SARO's earnings momentum sustainable into next year?

**StandardAero's (SARO) earnings momentum appears to be sustainable into next year**, based on several key indicators: 1. **Strong Revenue Growth**: SARO has demonstrated significant revenue growth, with a 28.21% increase in the most recent quarter. The company's full-year revenue growth for 2024 was 15%, indicating a strong upward trend. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |SARO|SARO.N|StandardAero|2024 Q3|191.65226119444597|13.205438036238416|200|169| |SARO|SARO.N|StandardAero|2024 Q4|-208.2474226804124|21.752315440618222||169| 2. **Adjusted EBITDA Growth**: The company reported a 37.2% year-over-year increase in adjusted EBITDA for Q4, and a 23% growth for the full year. This suggests a strong operational performance and the ability to convert revenue into profit. 3. **Strategic Initiatives**: SARO has successfully executed strategic programs like the LEAP program, which has led to substantial growth in adjusted EBITDA. The company's focus on market expansion and new contracts is likely to contribute to continued growth. 4. **Market Demand**: The commercial aerospace sector has shown robust expansion, with a 25% growth in 2024 and a 33% increase in Q4. This favorable market environment is expected to continue, supporting SARO's growth prospects. 5. **Financial Capacity**: Despite a net loss in Q4 due to one-time transaction-related costs, SARO completed a $1.7 billion IPO, significantly de-leveraging its business and refinancing its capital structure. This improved balance sheet positions the company well for future investments and growth. 6. **Management Outlook**: The company's management remains optimistic about 2025, projecting continued double-digit growth in its core segments. This suggests a forward-looking commitment to sustaining earnings momentum. In conclusion, while there may be challenges, such as initially low margins on new programs, the overall trajectory of SARO's earnings momentum appears to be sustainable into next year. The company's strategic positioning, market growth, and financial capacity all point to a positive outlook.