StandardAero 2025 Q1 Earnings Strong Performance as Net Income Surges 1875%
Wednesday, May 14, 2025 3:18 am ET
3min read StandardAero (SARO) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company announced a significant improvement in revenue and profitability, showcasing continued growth momentum. Revenue surpassed expectations, fueled by double-digit growth across key segments. StandardAero raised its financial guidance for 2025, anticipating sustained demand and strategic expansion. The company’s net income saw a remarkable 1875% increase, setting a new fiscal Q1 record high for the past two years.
Revenue
StandardAero's revenue for 2025 Q1 reached $1.44 billion, marking a 16.2% increase compared to 2024 Q1. The commercial aerospace segment was the largest contributor, generating $853.04 million. The military and helicopter division followed, delivering $249.53 million. Business aviation accounted for $283.29 million, while the 'Other' category added $49.73 million to the total revenue.
Earnings/Net Income
StandardAero's EPS surged to $0.19 in 2025 Q1 from $0.01 in 2024 Q1, marking an impressive 1800.0% increase. This growth was reflected in the company's net income, which rose to $62.94 million, up from $3.19 million in the previous year, demonstrating robust financial performance. The EPS growth indicates positive financial health.
Price Action
The stock price of StandardAero climbed 4.70% during the latest trading day, increased by 9.54% over the past trading week, and surged 21.69% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing SARO following revenue misses and holding for 30 days can be advantageous, particularly in volatile markets. This approach seeks to capitalize on temporary price declines after negative earnings reports, banking on short-term selling pressure that often leads to a rebound within a 30-day timeframe. The strategy hinges on the market's tendency to overreact to earnings misses, creating buying opportunities at lower prices. Historical data suggests that many stocks exhibit mean reversion over the short term, especially if the decline is not driven by fundamental issues. The 30-day holding period allows for recovery from initial sell-offs typical in such scenarios. Backtesting over the past decade involves simulating purchases at post-earnings miss prices and measuring performance against a buy-and-hold strategy using the same ETF. While the approach aims to capture short-term price rebounds, it does not account for further declines if underlying issues persist or the market environment remains adverse. The strategy's reliance on mean reversion, which may not always occur, highlights the importance of backtesting to assess its potential effectiveness. Positive backtest outcomes could suggest viability, but appropriate risk management is crucial to handle potential outliers.
CEO Commentary
"We are pleased to start the year with strong momentum across our businesses that led to mid-teens revenue growth and continued margin expansion, allowing us to increase our FY 2025 Revenue and Adjusted EBITDA guidance," said Russell Ford, Chairman and Chief Executive Officer of StandardAero. Ford highlighted robust demand in the aerospace engine aftermarket and the successful execution of their LEAP industrialization efforts. He expressed confidence in the company's agility to navigate the uncertain macro environment while continuing to invest in long-term growth opportunities.
Guidance
"As we move through 2025, we are off to a strong start, with robust demand across our Engine Services and Component Repair Services businesses," Ford stated. He noted that both segments are experiencing double-digit growth and emphasized that the company is raising its financial guidance for 2025 due to this momentum, driven by disciplined execution and strategic investments.
Additional News
In recent weeks, StandardAero has been active in strategic expansions and leadership appointments. The company announced a significant 15-year agreement with a major Middle Eastern airline for CFM LEAP engine support, showcasing its commitment to long-term service partnerships and market expansion. Additionally, StandardAero appointed Derek Kerr to its Board of Directors, strengthening its leadership team with strategic expertise. The company also executed a secondary offering of 36,000,000 shares of common stock, facilitated by affiliates of The Carlyle Group Inc. and GIC Private Limited, highlighting its focus on capital structure optimization and shareholder value creation.
Revenue
StandardAero's revenue for 2025 Q1 reached $1.44 billion, marking a 16.2% increase compared to 2024 Q1. The commercial aerospace segment was the largest contributor, generating $853.04 million. The military and helicopter division followed, delivering $249.53 million. Business aviation accounted for $283.29 million, while the 'Other' category added $49.73 million to the total revenue.
Earnings/Net Income
StandardAero's EPS surged to $0.19 in 2025 Q1 from $0.01 in 2024 Q1, marking an impressive 1800.0% increase. This growth was reflected in the company's net income, which rose to $62.94 million, up from $3.19 million in the previous year, demonstrating robust financial performance. The EPS growth indicates positive financial health.
Price Action
The stock price of StandardAero climbed 4.70% during the latest trading day, increased by 9.54% over the past trading week, and surged 21.69% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing SARO following revenue misses and holding for 30 days can be advantageous, particularly in volatile markets. This approach seeks to capitalize on temporary price declines after negative earnings reports, banking on short-term selling pressure that often leads to a rebound within a 30-day timeframe. The strategy hinges on the market's tendency to overreact to earnings misses, creating buying opportunities at lower prices. Historical data suggests that many stocks exhibit mean reversion over the short term, especially if the decline is not driven by fundamental issues. The 30-day holding period allows for recovery from initial sell-offs typical in such scenarios. Backtesting over the past decade involves simulating purchases at post-earnings miss prices and measuring performance against a buy-and-hold strategy using the same ETF. While the approach aims to capture short-term price rebounds, it does not account for further declines if underlying issues persist or the market environment remains adverse. The strategy's reliance on mean reversion, which may not always occur, highlights the importance of backtesting to assess its potential effectiveness. Positive backtest outcomes could suggest viability, but appropriate risk management is crucial to handle potential outliers.
CEO Commentary
"We are pleased to start the year with strong momentum across our businesses that led to mid-teens revenue growth and continued margin expansion, allowing us to increase our FY 2025 Revenue and Adjusted EBITDA guidance," said Russell Ford, Chairman and Chief Executive Officer of StandardAero. Ford highlighted robust demand in the aerospace engine aftermarket and the successful execution of their LEAP industrialization efforts. He expressed confidence in the company's agility to navigate the uncertain macro environment while continuing to invest in long-term growth opportunities.
Guidance
"As we move through 2025, we are off to a strong start, with robust demand across our Engine Services and Component Repair Services businesses," Ford stated. He noted that both segments are experiencing double-digit growth and emphasized that the company is raising its financial guidance for 2025 due to this momentum, driven by disciplined execution and strategic investments.
Additional News
In recent weeks, StandardAero has been active in strategic expansions and leadership appointments. The company announced a significant 15-year agreement with a major Middle Eastern airline for CFM LEAP engine support, showcasing its commitment to long-term service partnerships and market expansion. Additionally, StandardAero appointed Derek Kerr to its Board of Directors, strengthening its leadership team with strategic expertise. The company also executed a secondary offering of 36,000,000 shares of common stock, facilitated by affiliates of The Carlyle Group Inc. and GIC Private Limited, highlighting its focus on capital structure optimization and shareholder value creation.
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