Exhibit 99.1

 

StandardAero Announces Second Quarter 2026 Results

Margin Expansion Leads To Double-digit Earnings Growth And Drives Guidance Increase

SCOTTSDALE, Arizona, August 6, 2026 (BUSINESS WIRE)-- StandardAero (NYSE: SARO) announced results today for the three months ended June 30, 2026 (“Second Quarter 2026”).

Second Quarter 2026 Highlights

•
Revenue increased 4.6% year-over-year to $1,599.7 million
•
Net Income was $97.3 million; Diluted GAAP EPS was $0.29, Net Income Margin was 6.1%
•
Adjusted Diluted EPS was $0.40 up 24% from $0.32 in the prior year’s quarter
•
Adjusted EBITDA increased 12.3% year-over-year to $229.9 million; Adjusted EBITDA Margin was 14.4%
•
Cash Flow used in Operations was $72.3 million; Free Cash Flow for the quarter was an inflow of $50.2 million
•
Signed license agreement with a key OEM partner
•
Increasing FY26 Revenue, Adjusted EBITDA and Adjusted Diluted EPS guidance

 

“StandardAero delivered strong second quarter results with continued operational momentum,” said Russell Ford, StandardAero’s Chairman and Chief Executive Officer. “Amid the higher fuel price environment, we continue to see robust demand across the commercial aerospace platforms we serve, which translated into 12.3% Adjusted EBITDA growth year-over-year. Strong operational execution and the elimination of passthrough revenues from our restructured contracts allowed us to achieve record Adjusted EBITDA Margins of 14.4% and reach profitability on our LEAP and our CFM56 DFW programs during the quarter. Furthermore, we achieved an inflow of $50.2 million in Free Cash Flow during the quarter, as our supply chain initiatives begin to be realized.”

 

“We continue to execute on our strategic priorities,” Mr. Ford continued. “During the quarter, we signed an agreement with a key OEM partner that significantly expands our relationship and provides improved economics across multiple platforms, strengthening our long-term positioning. We also closed the acquisition of Unified Turbines, further building out our Component Repair Services capabilities, and continued to execute on our share repurchase program. Given our strong first-half performance and continued clear visible demand signals, we are raising our full-year 2026 guidance for revenue, Adjusted EBITDA, and Adjusted Diluted EPS, and remain confident in our ability to deliver another year of double-digit earnings growth.”

Second Quarter 2026 Consolidated Results

Revenue for the Second Quarter 2026 was $1,599.7 million, an increase of $70.8 million, or 4.6%, from $1,528.9 million for the prior year period. The increase was driven by continued strong demand in our commercial aerospace and business aviation businesses, partially offset by the previously announced elimination of low-to-no margin material pass-through revenue on restructured contracts and lower military sales at our Component Repairs Services segment. The Commercial Aerospace end market grew 5.7% compared to the prior year period, the Business Aviation end market grew 5.6% compared to the prior year period, and the Military and Helicopter end market decreased 2.6%, compared to the prior year period.

Net income for the Second Quarter 2026 was $97.3 million, as compared to net income of $67.7 million for the prior year period, a 43.7% year-over-year growth rate. Net Income Margin was 6.1% in the quarter, compared to 4.4% in the prior year period.

Adjusted EBITDA for the Second Quarter 2026 was $229.9 million, an increase of $25.2 million, or 12.3%, from $ 204.6 million for the prior year period. The increase reflects continued growth in volume and pricing, as well as productivity improvements. Adjusted EBITDA Margin of 14.4% increased 100 basis points compared to 13.4% in the prior year period, primarily due to productivity improvements and the previously mentioned elimination of material pass-through revenue.

Second Quarter 2026 Segment Results

Engine Services Segment

Engine Services segment revenue for the Second Quarter 2026 was $1,405.1 million, an increase of $54.4 million, or 4.0%, from $1,350.7 million for the prior year period. The increase was driven primarily by continued year-over-year growth across all three major

 

 

end markets, offset by the elimination of low-to-no margin material pass-through revenues on restructured contracts.

Engine Services Segment Adjusted EBITDA for the Second Quarter 2026 was $204.2 million, an increase of $25.7 million, or 14.4%, from $178.5 million for the prior year period. The increase was driven by volume, productivity gains, and mix. Segment Adjusted EBITDA Margin of 14.5% increased 130 basis points compared to 13.2% in the prior year period driven by productivity gains, the elimination of material pass-through revenue, and mix, offset partially by the continued ramp in the LEAP and CFM56 DFW programs.

Component Repair Services Segment

Component Repair Services segment revenue for the Second Quarter 2026 was $194.6 million, an increase of $16.3 million, or 9.2%, from $178.3 million for the prior year period. The increase was driven by strong demand on commercial aerospace products and aeroderivative platforms, which were partially offset by lower revenues on certain military platforms due to input delays.

Component Repair Services Segment Adjusted EBITDA for the Second Quarter 2026 was $51.2 million, a decrease of $0.4 million, or 0.9%, from $51.6 million for the prior year period. Segment Adjusted EBITDA Margins decreased 270 basis points to 26.3% from 29.0% in the prior year period, driven primarily by negative mix.

Full Year 2026 Guidance

 

StandardAero is updating its full year 2026 guidance:

 

 

Full Year 2026

($ in millions)

 

 

Revenue1 (increase)

$6,375 to $6,500

 

 

Engine Services1 (increase)

$5,600 to $5,700

 

 

Component Repair Services

$775 to $800

 

 

Adjusted EBITDA (increase)

$885 to $910

 

 

Engine Services Segment (increase)

$770 to $785

 

 

Component Repair Services Segment

$220 to $230

 

 

Adjusted Free Cash Flow2 (revised)

$270 to $300

 

 

Adjusted Diluted Earnings Per Share3 (revised)

$1.50 to $1.57

 

 

 

 

 

 

 

 

 

End Market Revenue Growth Assumptions

 

 

 

Commercial Aerospace4

Low-Double Digit to Mid-Teens YoY Growth

 

 

Military & Helicopter

Low-Double Digit YoY Growth

 

 

Business Aviation

High-Single Digit to Low-Double Digit YoY Growth

 

StandardAero has not reconciled its full year 2026 guidance related to Adjusted EBITDA, Adjusted Free Cash Flow or Adjusted Diluted EPS to its most directly comparable forward looking GAAP financial measure because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measure without unreasonable effort or expense.

 

Conference Call and Webcast

1 Includes effect from the elimination of $300 to $400 million in material pass-through revenue.

2 Defined as Free Cash Flow excluding the purchase of intangible assets. Although StandardAero has previously provided guidance for Free Cash Flow, the Company has determined to provide guidance for Adjusted Free Cash Flow going forward because management believes that excluding the purchase of all intangible assets will provide investors with a more useful baseline for evaluating the Company’s core operating performance, as these cash payments—whether arising from acquisition accounting or license-related intangible investments—do not reflect StandardAero’s ongoing operations.

3 Effective Q2 2026, the Company updated its definition of Adjusted Diluted EPS to broaden the existing exclusion of amortization of acquired intangible assets to also exclude the non-cash amortization of all intangible assets, including intangible assets associated with licenses. Management believes that excluding this item provides investors with a more useful baseline for evaluating core operating performance, as these non-cash charges—whether arising from acquisition accounting or license-related intangible investments—do not reflect the Company’s ongoing operations and facilitate more consistent comparison of results across periods regardless of how the Company has chosen to deploy capital.

4 Excludes effect from the elimination of $300 to $400 million in material pass-through revenue.

 

 

 

Information

StandardAero management will host a conference call today, August 6, 2026, at 5:00 PM ET, to discuss its results in more detail. The conference call will be broadcast live via webcast, and the webcast and accompanying slide presentation can be accessed by visiting the Events section on StandardAero’s investor relations website at https://ir.standardaero.com/news-events/events. The conference call may also be accessed by dialing (877) 407-9762 or (201) 689-8538 for telephone access to the live call. Please click here for international toll-free access numbers.

For those unable to listen to the live conference call, a replay will be available after the call through the archived webcast in the Events section of the StandardAero’s investor relations website or by dialing (877) 660-6853 or (201) 612-7415. The access code for the replay is 13761161. The replay will be available until 11:59 PM ET on August 20, 2026.

About StandardAero

StandardAero is a leading independent pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets. StandardAero provides a comprehensive suite of critical, value-added aftermarket solutions, including engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. StandardAero is an NYSE listed company under the ticker symbol SARO. For more information about StandardAero, go to www.standardaero.com.

Investor Relations Contact

Investors@StandardAero.com

Rama Bondada

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). In some cases, you can identify forward-looking statements by the words “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “foreseeable,” “future,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” or “would” and/or the negative of these terms, or other comparable terminology intended to identify statements about the future. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations for the fiscal year ended December 31, 2026, financial condition, liquidity, prospects, growth, strategies, the industry in which we operate and other information that is not historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this presentation, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions that are difficult to predict or quantify.

Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, among others: risks related to conditions that affect the commercial and business aviation industries; decreases in budget, spending or outsourcing by our military end-users; risks from any supply chain disruptions or loss of key suppliers; increased costs of labor, equipment, raw materials, freight and utilities due to inflation; future outbreaks and infectious diseases; risks related to competition in the market in which we participate; loss of an OEM authorization or license; risks related to a significant portion of our revenue being derived from a small number of customers; our ability to remediate effectively the material weaknesses identified in our internal control over financial reporting; our ability to respond to changes in GAAP; our or our third-party partners’ failure to protect confidential information; data security incidents or disruptions to our IT systems and capabilities; our ability to comply with laws relating to the handling of information about individuals; changes to, and the impact of, United States tariff and import/export regulations; failure to maintain our regulatory approvals; risks relating to our operations outside of North America; failure to comply with government procurement laws and regulations; any work stoppage, hiring, retention or succession issues with our senior management team and employees; any strains on our resources due to the requirements of being a public company; risks related to our substantial indebtedness; risks related to the ownership of our common stock, including the fact that Carlyle owns a significant amount of our voting power; our success at managing the risks of the foregoing, and the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2025 and our other filings with the SEC.

As a result of these factors, we cannot assure you that the forward-looking statements in this press release will prove to be accurate. You should understand that it is not possible to predict or identify all such factors. We operate in a competitive and rapidly changing

 

 

environment. New factors emerge from time to time, and it is not possible to predict the impact of all of these factors on our business, financial condition or results of operations.

Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives, plans or cost savings in any specified time frame or at all. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. We caution you not to place undue reliance on these forward-looking statements. All forward looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Forward-looking statements speak only as of the date of this press release. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

Non-GAAP Financial Measures

This press release includes “non-GAAP financial measures,” which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt to Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow and Adjusted Free Cash Flow. We use these non-GAAP financial measures to evaluate our business operations.

Certain of the non-GAAP financial measures presented in this press release are supplemental measures of our performance, in the case of Adjusted EBITDA and Adjusted EBITDA Margin, that we believe help investors understand our financial condition and operating results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures provide investors greater transparency to the information used by management for its operational decision-making and allow investors to see our results “through the eyes of management.” We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance. We also present Net Debt to Adjusted EBITDA, Free Cash Flow, and Adjusted Free Cash Flow, which are liquidity measures, that we believe are useful to investors because it is also used by our management for measuring our operating cash flow, liquidity and allocating resources. We believe it is important to measure the free cash flows we have generated from operations, after accounting for routine capital expenditures required to generate those cash flows. When read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry.

We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, further adjusted for certain non-cash items that we may record each period, as well as non-recurring items such as acquisition costs, integration and severance costs, refinance fees, business transformation costs and other discrete expenses, when applicable. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We define Adjusted Net Income as GAAP Net income, adjusted for certain one-time items that we may record in a period, as well as non-recurring items such as acquisition costs, integration and severance costs, refinance fees, business transformation costs and other discrete expenses, when applicable, adjusted for the tax effect. We define Adjusted Diluted EPS as Adjusted Net Income divided by the Total Diluted Shares Outstanding. We believe that Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted EPS are important metrics for management and investors as they remove the impact of items that we do not believe are indicative of our core operating results or the overall health of our company and allows for consistent comparison of our operating results over time and relative to our peers. We define Net Debt to Adjusted EBITDA as long-term debt, less cash and cash equivalents divided by Adjusted EBITDA. We define free cash flow as cash from operating activities less capital expenditures. We defined Adjusted Free Cash Flow as Free Cash Flow excluding the purchase of intangible assets.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with GAAP. Readers should review the reconciliations of our non-GAAP financial measures to the corresponding GAAP measures included in this press release and should not rely on any single financial measure to evaluate our business.

We have presented forward-looking statements regarding Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Diluted EPS. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial

 

 

measure determined in accordance with GAAP. The determination of the amounts that are excluded from each non-GAAP financial measure is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period in reliance on the exception provided by item 10(e)(1)(i)(B) of Regulation S-K. We are unable to present a quantitative reconciliation of each forward-looking Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Diluted EPS measure to its most directly comparable forward looking GAAP financial measure because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measure without unreasonable effort or expense. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the company’s future financial results. These non-GAAP financial measures are preliminary estimates and subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between our actual results and the forward-looking non-GAAP financial data set forth above may be material.

 

 

STANDARDAERO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share figures)

 

June 30,

 

 

December 31,

 

 

 

2026

 

 

2025

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

179,063

 

 

$

289,717

 

Accounts receivable (less allowance for expected credit losses of $9,911 and $13,484, respectively)

 

 

815,633

 

 

 

654,390

 

Contract assets, net

 

 

1,202,456

 

 

 

1,071,703

 

Inventories

 

 

772,104

 

 

 

827,691

 

Prepaid expenses and other current assets

 

 

34,833

 

 

 

42,776

 

Income tax receivable

 

 

25,173

 

 

 

10,182

 

Total current assets

 

 

3,029,262

 

 

 

2,896,459

 

Property, plant and equipment, net

 

 

589,485

 

 

 

579,971

 

Operating lease right of use asset, net

 

 

224,421

 

 

 

222,151

 

Customer relationships, net

 

 

884,236

 

 

 

920,432

 

Other intangible assets, net

 

 

403,141

 

 

 

244,877

 

Goodwill

 

 

1,710,805

 

 

 

1,684,255

 

Other assets

 

 

5,932

 

 

 

6,434

 

Deferred income tax assets

 

 

2,832

 

 

 

2,832

 

Total assets

 

$

6,850,114

 

 

$

6,557,411

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

711,647

 

 

$

679,772

 

Accrued expenses and other current liabilities

 

 

263,191

 

 

 

91,499

 

Accrued employee costs

 

 

81,488

 

 

 

74,008

 

Operating lease liabilities, current

 

 

25,834

 

 

 

22,308

 

Due to related parties

 

 

—

 

 

 

438

 

Contract liabilities

 

 

312,270

 

 

 

411,321

 

Income taxes payable, current

 

 

1,317

 

 

 

13,547

 

Long-term debt, current portion

 

 

23,322

 

 

 

23,444

 

Total current liabilities

 

 

1,419,069

 

 

 

1,316,337

 

Long-term debt

 

 

2,301,848

 

 

 

2,191,161

 

Operating lease liabilities, non-current

 

 

212,041

 

 

 

212,365

 

Deferred income tax liabilities

 

 

152,437

 

 

 

157,206

 

Income taxes payable, non-current

 

 

6,533

 

 

 

5,770

 

Other non-current liabilities

 

 

4,693

 

 

 

7,261

 

Total liabilities

 

 

4,096,621

 

 

 

3,890,100

 

Commitments and contingencies (Note 11)

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Common stock ($0.01 par value, 3,500,000,000 shares authorized; 334,653,783 issued and 330,910,687 outstanding as of June 30, 2026 and 334,461,630 issued and 334,294,245 outstanding as of December 31, 2025)

 

 

3,309

 

 

 

3,345

 

Preferred stock ($0.01 par value, 100,000,000 shares authorized; no shares were issued)

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

3,967,764

 

 

 

3,958,039

 

Accumulated deficit

 

 

(1,108,696

)

 

 

(1,285,904

)

Accumulated other comprehensive loss

 

 

(7,884

)

 

 

(8,169

)

Treasury stock (at cost, 3,743,096 and 176,019 shares as of June 30, 2026 and December 31, 2025)

 

 

(101,000

)

 

 

—

 

Total stockholders’ equity

 

 

2,753,493

 

 

 

2,667,311

 

Total liabilities and stockholders’ equity

 

$

6,850,114

 

 

$

6,557,411

 

 

 

 

STANDARDAERO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share figures)

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

1,599,693

 

 

$

1,528,943

 

 

$

3,226,550

 

 

$

2,964,531

 

Cost of revenue

 

 

1,330,915

 

 

 

1,292,768

 

 

 

2,718,400

 

 

 

2,510,626

 

Selling, general and administrative expense

 

 

75,597

 

 

 

76,002

 

 

 

147,539

 

 

 

140,477

 

Amortization of intangible assets

 

 

24,698

 

 

 

24,603

 

 

 

49,030

 

 

 

48,935

 

Operating income

 

 

168,483

 

 

 

135,570

 

 

 

311,581

 

 

 

264,493

 

Interest expense

 

 

41,279

 

 

 

43,835

 

 

 

79,430

 

 

 

87,626

 

Income before income taxes

 

 

127,204

 

 

 

91,735

 

 

 

232,151

 

 

 

176,867

 

Income tax expense

 

 

29,926

 

 

 

24,022

 

 

 

54,943

 

 

 

46,211

 

Net income

 

$

97,278

 

 

$

67,713

 

 

$

177,208

 

 

$

130,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.30

 

 

$

0.21

 

 

$

0.54

 

 

$

0.40

 

Diluted

 

$

0.29

 

 

$

0.20

 

 

$

0.53

 

 

$

0.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of common stock outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

326,261

 

 

 

328,445

 

 

 

326,756

 

 

 

328,442

 

Diluted

 

 

332,310

 

 

 

334,300

 

 

 

332,858

 

 

 

334,227

 

 

 

 

STANDARDAERO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

Six Months Ended June 30,

 

2026

 

 

2025

 

Operating activities

 

 

 

 

 

Net income

$

177,208

 

 

$

130,656

 

Adjustments to reconcile net income from operations to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization

 

93,504

 

 

 

97,223

 

Amortization of deferred finance charges and discounts

 

3,246

 

 

 

3,288

 

Amortization of interest cap premiums

 

3,379

 

 

 

5,467

 

Payment of interest rate cap premiums

 

(3,473

)

 

 

(5,524

)

Stock compensation expense

 

9,725

 

 

 

5,875

 

Loss (gain) from disposals, net

 

(622

)

 

 

3,449

 

Non-cash lease expense

 

902

 

 

 

866

 

Deferred income taxes

 

(4,731

)

 

 

(11,560

)

Foreign exchange gain (loss), net

 

679

 

 

 

431

 

Changes in operating assets and liabilities, net of effect of acquisitions:

 

 

 

 

 

Accounts receivable, net

 

(160,101

)

 

 

(96,589

)

Contract assets, net

 

(130,753

)

 

 

(155,634

)

Inventories, net

 

55,770

 

 

 

(4,579

)

Prepaid expenses and other current assets

 

6,237

 

 

 

(24,422

)

Accounts payable, accrued expenses and other current liabilities

 

27,750

 

 

 

25,885

 

Contract liabilities

 

(99,051

)

 

 

20,204

 

Due to/from related parties

 

(438

)

 

 

(649

)

Income taxes payable and receivable

 

(26,458

)

 

 

(15,490

)

Net cash used in operating activities

 

(47,227

)

 

 

(21,103

)

Investing activities

 

 

 

 

 

Acquisitions, net of cash and other

 

(33,263

)

 

 

1,254

 

Purchase of property, plant and equipment

 

(36,641

)

 

 

(47,262

)

Payments for purchase of intangible assets

 

(476

)

 

 

(30,000

)

Proceeds from disposal of property, plant and equipment

 

828

 

 

 

3,637

 

Net cash used in investing activities

 

(69,552

)

 

 

(72,371

)

Financing activities

 

 

 

 

 

Proceeds from long-term debt

 

235,000

 

 

 

345,000

 

Repayment of long-term debt

 

(126,774

)

 

 

(261,785

)

Repurchase of common stock

 

(100,085

)

 

 

—

 

Repayments of long-term agreements

 

(911

)

 

 

(1,501

)

Net cash provided by financing activities

 

7,230

 

 

 

81,714

 

Effect of exchange rate changes on cash

 

(1,105

)

 

 

692

 

Net decrease in cash

 

(110,654

)

 

 

(11,068

)

Cash at beginning of the period

 

289,717

 

 

 

102,581

 

Cash at end of the period

$

179,063

 

 

$

91,513

 

Supplemental cash flow information:

 

 

 

 

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

Acquisition of property, plant and equipment, liability incurred, but not paid

$

2,782

 

 

$

839

 

Acquisition of intangible assets, liability incurred, but not paid

 

180,777

 

 

 

—

 

 

 

 

Selected financial information for each segment is as follows:

 

Three months ended June 30, 2026

 

 

Engine
Services

 

 

Component
Repair Services

 

 

Total
Segments

 

 

(in thousands)

 

Revenue from external customers

 

$

1,424,678

 

 

$

175,015

 

 

$

1,599,693

 

Intersegment revenue

 

 

(19,594

)

 

 

19,594

 

 

 

—

 

Total segment revenue

 

 

1,405,084

 

 

 

194,609

 

 

 

1,599,693

 

Other segment items (1)

 

 

1,200,871

 

 

 

143,411

 

 

 

1,344,282

 

Segment Adjusted EBITDA

 

$

204,213

 

 

$

51,198

 

 

$

255,411

 

Corporate (2)

 

 

 

 

 

 

 

 

25,534

 

Depreciation and amortization

 

 

 

 

 

 

 

 

47,043

 

Interest expense

 

 

 

 

 

 

 

 

41,279

 

Business transformation costs (LEAP and CFM) (3)

 

 

 

 

 

 

 

 

3,698

 

Non-cash stock compensation expense

 

 

 

 

 

 

 

 

6,267

 

Integration costs and severance (4)

 

 

 

 

 

 

 

 

346

 

Other (5)

 

 

 

 

 

 

 

 

4,040

 

Income before income taxes

 

 

 

 

 

 

 

$

127,204

 

 

(1)
Other segment items for each reportable segment primarily includes cost of sales and other selling, general and administrative expenses.
(2)
Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Supply Chain, Engineering and Quality, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company’s debt.
(3)
Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company’s CFM56 capabilities into Dallas, Texas.
(4)
Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs.
(5)
Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of the Company’s ordinary course of continuing operations.

 

 

Six months ended June 30, 2026

 

 

Engine
Services

 

 

Component
Repair Services

 

 

Total
Segments

 

 

(in thousands)

 

Revenue from external customers

 

$

2,891,257

 

 

$

335,293

 

 

$

3,226,550

 

Intersegment revenue

 

 

(39,029

)

 

 

39,029

 

 

 

—

 

Total segment revenue

 

 

2,852,228

 

 

 

374,322

 

 

 

3,226,550

 

Other segment items (1)

 

 

2,469,382

 

 

 

270,723

 

 

 

2,740,105

 

Segment Adjusted EBITDA

 

$

382,846

 

 

$

103,599

 

 

$

486,445

 

Corporate (2)

 

 

 

 

 

 

 

 

53,412

 

Depreciation and amortization

 

 

 

 

 

 

 

 

93,504

 

Interest expense

 

 

 

 

 

 

 

 

79,430

 

Business transformation costs (LEAP and CFM) (3)

 

 

 

 

 

 

 

 

10,320

 

Non-cash stock compensation expense

 

 

 

 

 

 

 

 

9,725

 

Integration costs and severance (4)

 

 

 

 

 

 

 

 

687

 

Other (5)

 

 

 

 

 

 

 

 

7,216

 

Income before income taxes

 

 

 

 

 

 

 

$

232,151

 

 

(1)
Other segment items for each reportable segment primarily includes cost of sales and other selling, general and administrative expenses.
(2)
Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Supply Chain, Engineering and Quality, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company’s debt.

 

 

(3)
Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company’s CFM56 capabilities into Dallas, Texas.
(4)
Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs.
(5)
Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of the Company’s ordinary course of continuing operations.

 

 

Three months ended June 30, 2025

 

 

Engine
Services

 

 

Component
Repair Services

 

 

Total
Segments

 

 

(in thousands)

 

Revenue from external customers

 

$

1,373,701

 

 

$

155,242

 

 

$

1,528,943

 

Intersegment revenue

 

 

(23,024

)

 

 

23,024

 

 

 

—

 

Total segment revenue

 

 

1,350,677

 

 

 

178,266

 

 

 

1,528,943

 

Other segment items (1)

 

 

1,172,168

 

 

 

126,626

 

 

 

1,298,794

 

Segment Adjusted EBITDA

 

$

178,509

 

 

$

51,640

 

 

$

230,149

 

Corporate (2)

 

 

 

 

 

 

 

 

25,512

 

Depreciation and amortization

 

 

 

 

 

 

 

 

48,547

 

Interest expense

 

 

 

 

 

 

 

 

43,835

 

Business transformation costs (LEAP and CFM) (3)

 

 

 

 

 

 

 

 

5,264

 

Non-cash stock compensation expense

 

 

 

 

 

 

 

 

3,830

 

Integration costs and severance (4)

 

 

 

 

 

 

 

 

1,360

 

Other (5)

 

 

 

 

 

 

 

 

10,066

 

Profit before tax

 

 

 

 

 

 

 

$

91,735

 
(1)
Other segment items for each reportable segment primarily includes cost of sales and other selling, general and administrative expenses.
(2)
Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Supply Chain, Engineering and Quality, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company's debt.
(3)
Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company’s CFM56 capabilities into Dallas, Texas.
(4)
Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs.
(5)
Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of our ordinary course of continuing operations.

 

 

 

 

Six months ended June 30, 2025

 

 

Engine
Services

 

 

Component
Repair Services

 

 

Total
Segments

 

 

(in thousands)

 

Revenue from external customers

 

$

2,659,977

 

 

$

304,554

 

 

$

2,964,531

 

Intersegment revenue

 

 

(40,987

)

 

 

40,987

 

 

 

—

 

Total segment revenue

 

 

2,618,990

 

 

 

345,541

 

 

 

2,964,531

 

Other segment items (1)

 

 

2,266,472

 

 

 

246,540

 

 

 

2,513,012

 

Segment Adjusted EBITDA

 

$

352,518

 

 

$

99,001

 

 

$

451,519

 

Corporate (2)

 

 

 

 

 

 

 

 

48,655

 

Depreciation and amortization

 

 

 

 

 

 

 

 

97,223

 

Interest expense

 

 

 

 

 

 

 

 

87,626

 

Business transformation costs (LEAP and CFM) (3)

 

 

 

 

 

 

 

 

18,181

 

Non-cash stock compensation expense

 

 

 

 

 

 

 

 

5,875

 

Integration costs and severance (4)

 

 

 

 

 

 

 

 

2,740

 

Other (5)

 

 

 

 

 

 

 

 

14,352

 

Income before income taxes

 

 

 

 

 

 

 

$

176,867

 
(1)
Other segment items for each reportable segment primarily includes cost of sales and other selling, general and administrative expenses.
(2)
Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Supply Chain, Engineering and Quality, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company’s debt.
(3)
Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company’s CFM56 capabilities into Dallas, Texas.
(4)
Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs.
(5)
Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of our ordinary course of continuing operations.

 

 

 

The following table presents a reconciliation of net income and net income margin to Adjusted EBITDA and Adjusted EBITDA Margin, respectively:

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(in thousands, except percentages)

 

Net income

 

$

97,278

 

 

$

67,713

 

 

$

177,208

 

 

$

130,656

 

Income tax expense

 

 

29,926

 

 

 

24,022

 

 

 

54,943

 

 

 

46,211

 

Depreciation and amortization

 

 

47,043

 

 

 

48,547

 

 

 

93,504

 

 

 

97,223

 

Interest expense

 

 

41,279

 

 

 

43,835

 

 

 

79,430

 

 

 

87,626

 

Business transformation costs (LEAP and CFM) (1)

 

 

3,698

 

 

 

5,264

 

 

 

10,320

 

 

 

18,181

 

Non-cash stock compensation expense

 

 

6,267

 

 

 

3,830

 

 

 

9,725

 

 

 

5,875

 

Integration costs and severance (2)

 

 

346

 

 

 

1,360

 

 

 

687

 

 

 

2,740

 

Secondary offering costs

 

 

—

 

 

 

3,860

 

 

 

1,350

 

 

 

3,860

 

Other (3)

 

 

4,040

 

 

 

6,206

 

 

 

5,866

 

 

 

10,492

 

Adjusted EBITDA

 

$

229,877

 

 

$

204,637

 

 

$

433,033

 

 

$

402,864

 

Revenue

 

$

1,599,693

 

 

$

1,528,943

 

 

$

3,226,550

 

 

$

2,964,531

 

Net income margin

 

 

6.1

%

 

 

4.4

%

 

 

5.5

%

 

 

4.4

%

Adjusted EBITDA Margin

 

 

14.4

%

 

 

13.4

%

 

 

13.4

%

 

 

13.6

%

 

(1)
Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company’s CFM56 capabilities into Dallas, Texas.
(2)
Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs.
(3)
Represents other costs not recurring in the ordinary course of business including professional fees related to business transformation and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions and other non-comparable events to measure operating performance as these events arise outside of the Company’s ordinary course of continuing operations.

The following table presents a reconciliation of Debt to Net Debt and Net Debt to Adjusted EBITDA:

 

 

June 30,

 

 

June 30,

 

 

 

 

2026

 

 

2025

 

 

 

 

(in millions, except percentages)

 

 

2024 Term Loan Facilities

 

$

2,216.3

 

 

$

2,238.8

 

 

2024 Revolving Credit Facility

 

 

120.0

 

 

 

95.0

 

 

Finance leases

 

 

17.8

 

 

 

19.1

 

 

Other

 

 

1.0

 

 

 

1.1

 

 

Debt

 

 

2,355.1

 

 

 

2,354.0

 

 

Less Cash

 

 

179.1

 

 

 

91.5

 

 

Net Debt

 

$

2,176.0

 

 

$

2,262.5

 

 

 

 

 

 

 

 

 

 

LTM Adjusted EBITDA

 

$

838.4

 

 

$

757.4

 

 

Net Debt to Adjusted EBITDA

 

2.6x

 

 

3.0x

 

 

 

 

 

The following table presents revenue by segment, Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin:

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(in thousands, except percentages)

 

Engine Services

 

 

 

 

 

 

 

 

 

 

 

 

Segment Revenue

 

$

1,405,084

 

 

$

1,350,677

 

 

$

2,852,228

 

 

$

2,618,990

 

Segment Adjusted EBITDA

 

$

204,213

 

 

$

178,509

 

 

$

382,846

 

 

$

352,518

 

Segment Adjusted EBITDA Margin

 

 

14.5

%

 

 

13.2

%

 

 

13.4

%

 

 

13.5

%

Component Repair Services

 

 

 

 

 

 

 

 

 

 

 

 

Segment Revenue

 

$

194,609

 

 

$

178,266

 

 

$

374,322

 

 

$

345,541

 

Segment Adjusted EBITDA

 

$

51,198

 

 

$

51,640

 

 

$

103,599

 

 

$

99,001

 

Segment Adjusted EBITDA Margin

 

 

26.3

%

 

 

29.0

%

 

 

27.7

%

 

 

28.7

%

The following table presents a reconciliation of Cash Flow from Operations to Free Cash Flow:

 

Three months ended June 30,

 

 

Six months ended June 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(in thousands)

 

Net cash used in operating activities

$

72,328

 

 

$

2,883

 

 

$

(47,227

)

 

$

(21,103

)

Purchase of property, plant and equipment

 

(21,051

)

 

 

(21,924

)

 

 

(36,641

)

 

 

(47,262

)

Payments for purchase of intangible assets

 

(476

)

 

 

(15,000

)

 

 

(476

)

 

 

(30,000

)

Proceeds from disposal of property, plant and equipment

 

(578

)

 

 

3,369

 

 

 

828

 

 

 

3,637

 

 

 

(22,105

)

 

 

(33,555

)

 

 

(36,289

)

 

 

(73,625

)

Free cash flow

$

50,223

 

 

$

(30,672

)

 

$

(83,516

)

 

$

(94,728

)

 

The following tables present a reconciliation of Net income/Diluted EPS to Adjusted Net Income/Adjusted Diluted EPS:
 

 

Three months Ended June 30, 2026

 

 

Six months ended June 30, 2026

 

 

$

 

 

EPS

 

 

$

 

 

EPS

 

 

(in millions, except per share data )

 

Net income/Diluted EPS

 

$

97.3

 

 

$

0.29

 

 

$

177.2

 

 

$

0.53

 

Business transformation costs (LEAP and CFM)

 

 

3.7

 

 

 

0.01

 

 

 

10.3

 

 

 

0.03

 

Stock compensation

 

 

6.2

 

 

 

0.02

 

 

 

9.7

 

 

 

0.03

 

Integration costs and severance

 

 

0.4

 

 

 

0.00

 

 

 

0.7

 

 

 

0.00

 

Secondary offering costs

 

 

—

 

 

 

—

 

 

 

1.3

 

 

 

0.00

 

Professional services fees and other

 

 

4.1

 

 

 

0.01

 

 

 

5.9

 

 

 

0.02

 

One-offs included in adjusted EBITDA add-back

 

 

14.4

 

 

 

0.04

 

 

 

27.9

 

 

 

0.08

 

Amortization of intangible assets (1)

 

 

32.6

 

 

 

0.10

 

 

 

64.9

 

 

 

0.19

 

Tax adjustment

 

 

(11.3

)

 

 

(0.03

)

 

 

(22.1

)

 

 

(0.07

)

Adjusted Net Income/Adjusted Diluted EPS (1)

 

$

133.0

 

 

$

0.40

 

 

$

247.9

 

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1) Effective Q2 2026, the Company updated its definition of Adjusted Diluted EPS to broaden the existing exclusion of amortization of acquired intangible assets to also exclude the non-cash amortization of all intangible assets, including intangible assets associated with licenses. Management believes that excluding this item provides investors with a more useful baseline for evaluating core operating performance, as these non-cash charges—whether arising from acquisition accounting or license-related intangible investments—do not reflect the Company’s ongoing operations and facilitate more consistent comparison of results across periods regardless of how the Company has chosen to deploy capital, and will provide further comparability to StandardAero’s peers.

 

 

 

Three months Ended June 30, 2025

 

 

Six months ended June 30, 2025

 

 

$

 

 

EPS

 

 

$

 

 

EPS

 

 

(in millions, except per share data )

 

Net income/Diluted EPS

 

$

67.8

 

 

$

0.20

 

 

$

130.7

 

 

$

0.39

 

Business transformation costs (LEAP and CFM)

 

 

5.3

 

 

 

0.02

 

 

 

18.2

 

 

 

0.05

 

Stock compensation

 

 

3.9

 

 

 

0.01

 

 

 

5.9

 

 

 

0.02

 

Integration costs and severance

 

 

1.3

 

 

 

0.00

 

 

 

2.7

 

 

 

0.01

 

Secondary offering costs

 

 

3.9

 

 

 

0.01

 

 

 

3.9

 

 

 

0.01

 

Professional services fees and other

 

 

6.2

 

 

 

0.02

 

 

 

10.5

 

 

 

0.03

 

One-offs included in adjusted EBITDA add-back

 

 

20.6

 

 

 

0.06

 

 

 

41.2

 

 

 

0.12

 

Amortization of intangible assets (1)

 

 

32.7

 

 

 

0.10

 

 

 

65.0

 

 

 

0.19

 

Tax adjustment

 

 

(13.0

)

 

 

(0.04

)

 

 

(25.9

)

 

 

(0.08

)

Adjusted Net Income/Adjusted Diluted EPS (1)

 

$

108.1

 

 

$

0.32

 

 

$

211.0

 

 

$

0.63

 

 

1) Effective Q2 2026, the Company updated its definition of Adjusted Diluted EPS to broaden the existing exclusion of amortization of acquired intangible assets to also exclude the non-cash amortization of all intangible assets, including intangible assets associated with licenses. Management believes that excluding this item provides investors with a more useful baseline for evaluating core operating performance, as these non-cash charges—whether arising from acquisition accounting or license-related intangible investments—do not reflect the Company’s ongoing operations and facilitate more consistent comparison of results across periods regardless of how the Company has chosen to deploy capital, and will provide further comparability to StandardAero’s peers.