What drove SARO's earnings growth in Q4?

StandardAero Inc (SARO) experienced significant revenue growth in Q4 2024, driven by several key factors:

1. **Commercial Aerospace Market Growth**: The commercial aerospace market saw a 33% increase in Q4, primarily due to strong demand. This growth directly benefited SARO, as it capitalized on the expanding market to boost its revenues.
2. **LEAP Program Success**: SARO's focus on the LEAP engine MRO business was instrumental. The company industrialized over 260 LEAP component repairs, signed agreements with nine customers for LEAP services, and secured future revenue exceeding $1 billion. This strategic program contributed significantly to the revenue growth.
3. **Capacity Expansion**: SARO expanded its capacity with new facilities in Dallas-Fort Worth and Augusta, Georgia, which enhanced its ability to capture market share. This strategic move allowed the company to handle increased demand more effectively.
4. **IPO and Debt Refinancing**: SARO's successful completion of a $1.7 billion initial public offering (IPO) in October allowed the company to pay down debt, reduce leverage, and improve its credit ratings. This refinancing resulted in over $130 million in annual interest savings. The strengthened financial position enabled SARO to invest in future growth opportunities and enhance margins.

In summary, SARO's earnings growth in Q4 2024 was driven by the commercial aerospace market growth, the success of its LEAP program, capacity expansion, and the benefits derived from IPO and debt refinancing. These factors combined to support substantial revenue growth and EBITDA expansion.