Key Points
-
Interested in StandardAero, Inc.? Here are five stocks we like better.
-
StandardAero raised its 2026 outlook after Q3 revenue grew 4% to $1.56 billion and adjusted EPS rose 30% to $0.39. It now expects revenue of $6.525 billion–$6.645 billion and adjusted EPS of $1.57–$1.62.
-
The company announced a $350 million accelerated share repurchase and increased its buyback authorization to $1.01 billion. Management expects year-end net leverage below 2.7 times.
-
Engine services drove earnings growth, with segment adjusted EBITDA up 24%, while LEAP demand remains strong and shop-visit slots are quoted into the mid-2030s. Material constraints persist, and the ramp-up of LEAP and CFM56 work is expected to weigh on fourth-quarter engine-services margins.
-
3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks
StandardAero (NYSE:SARO) raised its full-year 2026 earnings and revenue guidance after reporting third-quarter profit growth, and announced a $350 million accelerated share repurchase as new CEO Paul McElhinney outlined his priorities for the aircraft engine maintenance company.
Revenue rose 4% from a year earlier to $1.56 billion, while net income increased 36% to $93 million. Adjusted earnings per share climbed 30% to $0.39, and adjusted EBITDA rose 15% to $225 million. Adjusted EBITDA margin expanded 130 basis points to 14.4%.
→ Could the Midterms Revive Medicare for All? 3 Healthcare Stocks to Watch
McElhinney, who became CEO in October, said his focus would be on executing the company’s existing strategy, improving productivity and converting investments into earnings and cash flow growth. Executive Chairman Russell Ford said the call was his last following his tenure as CEO.
Higher guidance and share repurchases
StandardAero raised its full-year revenue forecast to $6.525 billion to $6.645 billion, an increase of $148 million at the midpoint. The new midpoint implies 8.6% growth from 2025, compared with the company’s previous forecast of approximately 6%.
→ Qualcomm Beat Earnings, But Its Fastest-Growing Businesses Have a Catch
The company also increased its adjusted EBITDA guidance to $905 million to $920 million, implying 13% growth at the midpoint, up from its prior forecast of 11%. Adjusted earnings per share are now expected to be $1.57 to $1.62, representing approximately 26% growth, compared with the previous expectation of 23%.
StandardAero maintained its adjusted free cash flow forecast of $270 million to $300 million. CFO Dan Satterfield said the earnings-per-share outlook benefited from higher earnings, a lower tax rate and a reduced share count.
