StandardAero Reports Strong Preliminary Financial Performance for Full-Year 2025, Driven by Revenue Growth and Cash Flow Expansion
StandardAero, Inc. (NYSE: SARO), a leading independent provider of aerospace engine aftermarket services, has announced unaudited preliminary estimated financial results for the year ended December 31, 2025, alongside comparative results from the prior fiscal year. While the Company’s year-end financial close is still underway, the early indicators point to a year of robust top-line growth, significantly improved profitability, and substantial cash flow generation, underscoring continued momentum across its commercial, military, and business aviation end markets.
The Company emphasized that the figures released are preliminary estimates derived from internal financial records and remain subject to final review, audit adjustments, and approval processes. As such, StandardAero has presented results in ranges rather than definitive amounts. Full audited financial results, along with detailed fourth-quarter performance and the Company’s outlook for 2026, are expected to be disclosed next month.
Preliminary Full-Year 2025 Financial Highlights
For the year ended December 31, 2025, StandardAero expects to deliver revenue between $6.05 billion and $6.08 billion, representing a year-over-year increase of approximately 15.6% to 16.1% compared with revenue of $5.24 billion reported in 2024. This growth reflects continued demand for engine maintenance, repair, and overhaul (MRO) services, fleet expansion across commercial aviation, and rising utilization of both fixed- and rotary-wing aircraft globally.
Net income for full-year 2025 is expected to range between $270 million and $280 million, a substantial improvement from $11 million recorded in the prior year. This sharp increase highlights the benefits of operational leverage, improved cost efficiency, and reduced one-time expenses that impacted 2024 results.
Adjusted EBITDA, a key non-GAAP measure used by management to assess operational performance, is estimated to fall between $806 million and $812 million, reflecting a year-over-year increase of roughly 17% from $690.5 million in 2024. Adjusted EBITDA margins are expected to remain stable at approximately 13.3%, indicating the Company’s ability to scale revenue while maintaining margin discipline.
Cash generation was another standout feature of the year. Cash flow from operations is expected to reach $310 million to $320 million, a dramatic improvement from $76.3 million in 2024. Free cash flow, defined as operating cash flow less capital expenditures, is projected to be between $200 million and $210 million, compared with a cash outflow of $45 million in the prior year. This represents a positive swing of more than $245 million year over year.
Revenue Growth Driven by Aviation Aftermarket Demand
The estimated revenue increase of more than $815 million reflects favorable market dynamics across StandardAero’s diversified aviation customer base. Commercial airline fleets continue to expand as global passenger traffic recovers and exceeds pre-pandemic levels on key routes, increasing demand for engine maintenance and component repair. Meanwhile, business aviation activity remained resilient throughout 2025, supported by sustained demand for private travel and fleet modernization.
In the military aviation segment, ongoing fleet readiness requirements and long-term service contracts provided stable revenue streams. StandardAero’s broad engine platform coverage and global footprint positioned the Company to capture opportunities across multiple aircraft types and geographies.
Profitability Expansion and Margin Stability
The Company’s estimated net income of up to $280 million reflects a meaningful turnaround from the prior year, which was impacted by higher interest expense, IPO-related costs, refinancing charges, and business transformation initiatives. In 2025, many of these non-recurring items either declined or were eliminated, contributing to stronger bottom-line performance.
Adjusted EBITDA growth was supported by increased throughput at maintenance facilities, improved labor productivity, and benefits from prior investments in engine platform expansions, including LEAP and CFM56 capabilities. Despite inflationary pressures in labor and materials, StandardAero was able to maintain Adjusted EBITDA margins at levels comparable to the prior year, demonstrating disciplined cost management.
Cash Flow and Capital Allocation
One of the most notable developments in 2025 was the Company’s cash flow performance. Operating cash flow increased by more than $230 million year over year, driven by higher earnings, improved working capital management, and lower cash outflows related to one-time items.
Capital expenditures totaled approximately $115 million, including investments in property, plant, equipment, and intangible assets. These investments were largely focused on expanding maintenance capacity, upgrading tooling and infrastructure, and supporting long-term growth initiatives. Even with these investments, free cash flow turned strongly positive, providing the Company with greater financial flexibility.
Reconciliation of Net Income to Adjusted EBITDA
Based on midpoint estimates, StandardAero reported net income of approximately $275 million for 2025. Adjustments to arrive at Adjusted EBITDA included income tax expense, depreciation and amortization, interest expense, and select non-recurring or non-cash items.
Key adjustments included business transformation costs related to the industrialization of the LEAP 1A/1B engine line in San Antonio and the expansion of CFM56 capabilities in Dallas. Integration and severance costs associated with acquisitions and workforce actions were also adjusted, along with non-cash stock compensation expense and secondary offering costs.
When these adjustments are applied, Adjusted EBITDA for 2025 is estimated at approximately $809 million, compared with $690.5 million in 2024.
Free Cash Flow Reconciliation
At the midpoint, cash flow from operations totaled approximately $315 million. After accounting for capital expenditures of roughly $115 million, including purchases of property, plant, equipment, and intangible assets, and modest proceeds from asset disposals, free cash flow is estimated at $205 million for 2025. This compares favorably to a free cash outflow of $45 million in 2024, reflecting a marked improvement in liquidity.
Preliminary Nature of the Results
StandardAero cautioned that the financial information presented remains unaudited and preliminary. The Company’s year-end closing procedures are still in progress, and final results may differ materially from these estimates due to adjustments identified during the completion of internal controls, reviews, and audits.
Management emphasized that these estimates should not be considered a substitute for audited financial statements prepared in accordance with U.S. GAAP. Investors are advised not to place undue reliance on the preliminary figures and to review the Company’s forthcoming Form 10-K and other SEC filings once available.
StandardAero is a leading independent, pure-play provider of aerospace engine aftermarket services for both fixed- and rotary-wing aircraft. The Company serves commercial airlines, military operators, and business aviation customers worldwide. Its service offerings include engine maintenance, repair, and overhaul; component repair; on-wing and field services; asset management; and engineering solutions. StandardAero is listed on the New York Stock Exchange under the ticker symbol SARO.
The announcement contains forward-looking statements subject to risks and uncertainties, including the possibility that actual results may differ materially from preliminary estimates. These statements are intended to fall under applicable safe harbor provisions of U.S. securities laws.
The Company also presented several non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow, which management uses to evaluate operating performance and liquidity. While these measures provide additional insight into the Company’s operations, they should be considered alongside GAAP financial results and may not be comparable to similarly titled measures used by other companies.
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