StandardAero, Inc. (SARO) · Nov 5, 2026 · Earnings

StandardAero earnings beat as Engine Services lifts guidance

Beat — Adjusted EPS $0.39 vs ~$0.38 consensus

StandardAero’s third-quarter earnings slightly beat consensus and lifted full-year guidance, led by Engine Services, while component margins weakened.

StandardAero is a pure-play aerospace engine aftermarket provider building capacity around Engine Services, including newer LEAP work and expanded CFM56 capabilities, while benefiting from sustained aircraft-maintenance demand. Its prior quarter had already raised 2026 guidance, so this filing is an acceleration of an existing execution story—not a new strategic pivot.

The quarter was a narrow earnings beat, not a broad revenue surprise. Adjusted diluted EPS reached $0.39 versus published consensus of roughly $0.38, while revenue of $1.557 billion was effectively in line with the roughly $1.56 billion expectation. The stronger result came from profitability: adjusted EBITDA rose 15% and margin expanded 130 basis points year over year.

Q3 2026Q3 2025Consensus
Revenue (Financial Highlights)$1,557.4M (+4.0%)$1,498.0M~$1,560M
Adjusted diluted EPS (Financial Highlights)$0.39 (+30.0%)$0.30~$0.38
Adjusted EBITDA (Financial Highlights)$224.9M (+15.0%)$195.6M
Adjusted EBITDA margin (Financial Highlights)14.4% (+130 bps)13.1%

Engine Services is carrying the business—and the guidance raise. Engine Services EBITDA jumped 24% with a 250-basis-point margin expansion, driven by volume, mix, productivity and used serviceable material. That more than offset the weaker Component Repair Services result and pushed full-year revenue, EBITDA and adjusted EPS guidance above the ranges issued in August. The midpoint increases were about 2.3% for revenue, 1.7% for EBITDA and 3.9% for adjusted EPS.

New FY26 guidePrior FY26 guide
Revenue (Full Year 2026 Guidance)$6,525M–$6,645M$6,375M–$6,500M
Adjusted EBITDA (Full Year 2026 Guidance)$905M–$920M$885M–$910M
Adjusted diluted EPS (Full Year 2026 Guidance)$1.57–$1.62$1.50–$1.57
Adjusted free cash flow (Full Year 2026 Guidance)$270M–$300M$270M–$300M

The mix is less clean than the headline suggests. Component Repair Services revenue grew 7.3%, but its EBITDA fell 9.9% and margin dropped from 30.7% to 25.8%, showing that growth there is currently coming with substantial productivity and mix pressure. Cash conversion also remains a constraint: nine-month operating cash flow was only $81.7 million, despite $270.0 million of net income, and adjusted free cash flow was just $16.1 million after heavy intangible-asset spending.

The buyback is meaningful capital allocation, but it competes with deleveraging and liquidity needs. The company authorized another $560 million, taking total repurchase capacity to $1 billion, and intends to execute a $350 million accelerated share repurchase. That is a stronger shareholder-return signal, but cash declined to $191.3 million from $289.7 million at year-end while debt rose to roughly $2.5 billion; the filing therefore supports confidence in earnings durability more than it demonstrates balance-sheet flexibility.

Bottom line: This is a modestly better-than-expected quarter with a genuine guidance raise, powered by Engine Services. The story advances, but weaker Component Repair margins, limited cash conversion and continued leverage keep it from being a clean, across-the-board upgrade.

What to watch next

Q3 earnings call, November 5

Original filing on SEC EDGAR

More StandardAero, Inc. news

StandardAero earnings beat as Engine Services lifts guidance | SARO Stock News
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