StandardAero 2025 Q3 Earnings Record Net Income Surges 314.5% as Revenue Rises 22%

StandardAero (SARO) delivered a standout quarter, surpassing expectations with revenue growth of 22% and a significant net income increase. The company raised full-year guidance across all metrics, reflecting confidence in its strategic initiatives and market demand.

Revenue

The company’s total revenue surged to $1.41 billion in Q3 2025, a 22.0% increase from $1.16 billion in the prior-year period. This growth was driven by robust performance across both the Engine Services and Component Repair Services segments. Engine Services revenue reached $1.32 billion, reflecting strong demand in commercial aerospace and military markets, while Component Repair Services added $175.8 million, bolstered by the ATI acquisition and land platform growth.

Earnings/Net Income

StandardAero’s EPS skyrocketed 250.0% to $0.21 in Q3 2025 from $0.06 in 2024 Q3, while net income hit a record $68.12 million—a 314.5% increase from $16.44 million. The company’s profitability was further underscored by a net income margin of 4.5%, up from 1.3% in the prior year. This performance highlights the effectiveness of cost management and operational scaling. The EPS growth is notably robust, aligning with the company’s strategic focus on margin expansion.

Price Action

StandardAero’s stock has shown mixed short-term performance, rising 1.66% in the latest trading day but declining 3.23% over the past week. Month-to-date, it has gained 2.80%, reflecting cautious optimism amid post-earnings volatility.

CEO Commentary

CEO Russell Ford emphasized the company’s Q3 success, noting $1.5 billion in revenue and $196 million in adjusted EBITDA. He highlighted the LEAP program’s rapid scaling and CFM56 DFW expansion, while acknowledging short-term margin pressures. Ford expressed confidence in profitability turning positive by early 2026, citing the company’s diversified model and operational discipline.

Guidance

StandardAero raised 2025 guidance to $5.97 billion–$6.03 billion in revenue and $795 million–$815 million in adjusted EBITDA. CFO Dan Satterfield noted $15 million in upgraded free cash flow expectations, driven by working capital efficiencies and contract renegotiations. The company anticipates LEAP revenues reaching $1 billion annually and margin-positive outcomes from key programs by early 2026.

Additional News

StandardAero announced a 70,000 sq. ft. expansion in Winnipeg, supported by a $3 million provincial investment, to enhance capacity for CF34 and CFM56 engines. The expansion underscores its commitment to serving commercial and military operators globally. Additionally, the company’s valuation remains elevated, with a P/E ratio of 67.5x, significantly above the industry average, raising questions about sustainability amid current growth trends. Recent stock performance has been modest, with a 1.6% monthly gain and a -9.8% one-year total shareholder return, reflecting mixed investor sentiment.