StandardAero's Q4 2024: Navigating Contradictions in Blackwell Production, Margins, and Market Demand

These are the key contradictions discussed in StandardAero's latest 2024 Q4 earnings call, specifically including: Blackwell production and supply chain constraints, gross margin expectations, and issues with product roadmap execution and supply chain:



Revenue and Earnings Growth:
- StandardAero reported a 15% increase in revenue for the year 2024, with 22% growth in Q4, and a 23% increase in adjusted EBITDA for the year.
- This growth was supported by strong market demand in the commercial aerospace market, which saw a 25% increase in 2024 and 33% growth in Q4, and the successful execution of strategic investments.

Strategic Investments and Market Opportunities:
- The company invested over $100 million in major program initiatives and achieved significant milestones in its LEAP and CFM56 programs.
- These investments are part of the company's strategic plan to capitalize on future growth opportunities in the commercial aerospace market.

Component Repair Services (CRS) Performance:
- The Component Repair Services segment saw a 15% increase in revenue and 23% growth in adjusted EBITDA for 2024.
- The growth was driven by increased organic sales and margin expansion, along with the acquisition and integration of Aero Turbine.

Mergers and Acquisitions (M&A):
- StandardAero completed the acquisition of Aero Turbine, with the integration going well and realizing synergies.
- The company continues to pursue accretive acquisition opportunities to complement its existing portfolio of engine and component repair offerings.