StandardAero, Inc. (NYSE: SARO) FY2025 revenue ~$5.65-5.95B (+10-15%) with adj. EPS ~$1.15-1.40 reflecting continued post-October 2024 NYSE IPO ~$5.65-5.95B aggregate Aerospace Engine Maintenance, Repair & Overhaul (MRO) revenue (~$4.4-4.65B aggregate Engine Services + ~$0.85-0.95B aggregate Component Repair Services + ~$0.40-0.50B aggregate Other Services) under continued President + CEO Russell Ford since 2018 (~7-year tenure as StandardAero CEO; selected primary post-2018 architect of CFM56 + CF34 + V2500 + LEAP engine MRO specialty + post-October 2024 NYSE IPO). One of the largest independent global specialty Aerospace Engine MRO companies. Founded 1911 as Standard Aero Limited by various aggregate founders in Winnipeg Manitoba Canada (~114-year heritage; selected pioneer Aerospace Engine MRO); selected post-2007 Carlyle Group acquisition + selected post-2014 Veritas Capital acquisition from Carlyle + selected post-2019 Carlyle Group re-acquisition from Veritas; selected post-October 2024 ~$1.7B+ NYSE IPO (~$1.7B+ IPO proceeds + ~60%+ Carlyle Group + Singapore GIC continued ownership concentration); selected post-2018 Russell Ford CEO appointment. Headquartered in Scottsdale Arizona; ~7,000-8,000 employees globally with ~40+ aggregate global Aerospace Engine MRO facilities (US + Canada + UK + Germany + Singapore + Australia). One primary business: independent Aerospace Engine MRO ~100%. Structure: Engine Services ~78%+ ($4.4-4.65B), Component Repair Services ~16%+ ($0.85-0.95B), Other Services ~7-9% ($0.40-0.50B). End-market mix: Commercial Aerospace ~75%+ + Business Aviation ~15% + Military + Helicopter ~10%. Geographic mix: Americas ~60%+ + EMEA ~25% + Asia Pacific ~15%. CFM56 + CF34 + V2500 Engine Services MRO pipeline (~$4.4-4.65B): ~$4.4-4.65B aggregate Engine Services revenue (~78%+ revenue mix); selected primary CFM56 (Boeing 737NG + A320ceo) + CF34 (Embraer + Bombardier CRJ) + V2500 (A320ceo) + LEAP (737 MAX + A320neo); selected ~6-7K+ annual Engine MRO shop visits; selected ~10-12% global Aerospace Engine MRO market share; selected ~$50-55B global Aerospace Engine MRO TAM. LEAP + Next-Gen Engine + Component Repair Services pipeline: selected continued post-2024 LEAP Engine MRO pipeline (~$300-400M annual LEAP MRO revenue; LEAP-1A + LEAP-1B + post-2024 CFM Joint Venture certified LEAP shop); selected Component Repair Services ~$0.85-0.95B revenue (~16%+; engine accessories + APU + landing gear + heat exchanger). President + CEO Russell Ford since 2018 (~7-year tenure); CFO Daniel Satterfield. Capital position: ~$0 dividend (no dividend track post-October 2024 NYSE IPO); minimal opportunistic buybacks; aggregate capital return ~$0M FY2025 (Capex-light + Carlyle Group sponsor capital return prioritization); net leverage ~3.0-3.5x Net Debt/EBITDA (post-October 2024 NYSE IPO debt paydown from ~5.0x); non-investment grade B1/B+ credit rating; ~330-340M diluted shares; ~60%+ Carlyle Group + Singapore GIC + institutional ownership concentration. FY2026 thesis: CFM56 + CF34 + V2500 Engine Services MRO pipeline + LEAP + Next-Gen Engine + Component Repair Services pipeline + ~$50-55B global Aerospace Engine MRO TAM + post-October 2024 NYSE IPO debt paydown + post-COVID commercial aerospace recovery. Risks: GE Aerospace + RTX Pratt & Whitney + Lufthansa Technik + MTU Aero Engines + ST Engineering + Singapore Aero Engine Services + Delta TechOps + AAR Corp + HEICO + TransDigm competitive displacement + Boeing 737 MAX + Airbus A320neo cycle considerations + post-October 2024 NYSE IPO Carlyle Group + Singapore GIC ownership concentration considerations + post-2024 CFM Joint Venture LEAP renewal considerations + Federal Reserve interest rate cycle considerations + post-2018 Russell Ford CEO succession planning considerations.

[SARO] StandardAero Thesis 2026: CFM56 V2500 MRO Drives Aerospace Engine Capital Return

Key Takeaways

SARO FY2025 revenue ~$5.65-5.95B (+10-15% YoY) with adj. EPS ~$1.15-1.40 reflecting continued post-October 2024 NYSE IPO ~~$5.65-5.95B aggregate Aerospace Engine Maintenance, Repair & Overhaul (MRO) revenue (~~$4.4-4.65B aggregate Engine Services + ~$0.85-0.95B aggregate Component Repair Services + ~$0.40-0.50B aggregate Other Services) under continued President + CEO Russell Ford since 2018 (~7-year tenure as StandardAero CEO; selected primary post-2018 architect of CFM56 + CF34 + V2500 + LEAP engine MRO specialty + post-October 2024 NYSE IPO).
CFM56 + CF34 + V2500 Engine Services MRO Pipeline (~$4.4-4.65B revenue): ~$4.4-4.65B aggregate Engine Services revenue (~78%+ revenue mix); selected primary CFM56 (Boeing 737NG + Airbus A320ceo) + CF34 (Embraer regional jets + Bombardier CRJ) + V2500 (IAE Airbus A320ceo) + LEAP (CFM Boeing 737 MAX + Airbus A320neo) + selected various aggregate ~$650-700 aggregate Engine Services revenue per engine + selected various aggregate ~$50-55B aggregate global Aerospace Engine MRO TAM + selected various aggregate ~10-12% aggregate aggregate global Aerospace Engine MRO market share + selected various aggregate ~6-7K+ aggregate annual Engine MRO shop visits.
LEAP + Next-Gen Engine + Component Repair Services Pipeline: selected continued post-2024 selected various aggregate LEAP Engine MRO pipeline (selected primary post-2024 ~$300-400M aggregate annual LEAP MRO revenue ramp + selected primary CFM International LEAP-1A + LEAP-1B + selected primary post-2024 CFM Joint Venture certified LEAP shop) + selected various aggregate Component Repair Services aggregate ~$0.85-0.95B aggregate revenue (~16%+ aggregate revenue mix; selected primary engine accessories + Auxiliary Power Units (APU) + landing gear + heat exchanger + selected various aggregate component repair).
Capital position + balance sheet: ~$0 dividend (no dividend track post-October 2024 NYSE IPO); minimal opportunistic buybacks; aggregate capital return ~$0M FY2025 (post-October 2024 NYSE IPO Capex-light + Carlyle Group sponsor capital return prioritization); net leverage ~3.0-3.5x Net Debt/EBITDA (post-October 2024 NYSE IPO debt paydown from ~5.0x); non-investment grade B1/B+ credit rating; ~330-340M diluted shares; selected ~60%+ aggregate Carlyle Group + Singapore GIC + selected various aggregate institutional ownership concentration (post-October 2024 NYSE IPO).
FY2026 thesis catalysts: CFM56 + CF34 + V2500 Engine Services MRO pipeline (~$4.4-4.65B + ~10-12% global Engine MRO market share + ~~6-7K+ annual shop visits) + LEAP + Next-Gen Engine + Component Repair Services pipeline (~~$1.15-1.35B aggregate combined) + selected ~$50-55B aggregate global Aerospace Engine MRO TAM + selected post-October 2024 NYSE IPO debt paydown.

Company Background

StandardAero, Inc. (NYSE: SARO) is one of the largest independent global specialty Aerospace Engine Maintenance, Repair & Overhaul (MRO) companies, founded 1911 as Standard Aero Limited by various aggregate founders in Winnipeg Manitoba Canada (114-year heritage; selected pioneer Aerospace Engine MRO; selected primary post-2007 Carlyle Group acquisition + post-2019 Carlyle re-acquisition consolidating StandardAero specialty). Selected post-2007 Carlyle Group acquisition + selected post-2014 Veritas Capital acquisition from Carlyle + selected post-2019 Carlyle Group re-acquisition from Veritas ($5B+ aggregate cumulative Carlyle ownership transactions); selected post-October 2024 ~$1.7B+ NYSE IPO (selected primary post-October 2024 ~$1.7B+ aggregate IPO proceeds + selected primary post-October 2024 ~60%+ Carlyle Group + Singapore GIC continued ownership concentration); selected post-2018 Russell Ford CEO appointment (selected primary post-2018 architect of StandardAero specialty); HQ Scottsdale Arizona; ~7,000-8,000 employees globally; selected ~40+ aggregate global Aerospace Engine MRO facilities (US + Canada + UK + Germany + Singapore + Australia + selected various aggregate global footprint).

SARO operates 1 primary business: independent Aerospace Engine Maintenance, Repair & Overhaul (MRO) ~100% revenue. Engine Services revenue ~~78%+ revenue mix (~~$4.4-4.65B; selected primary CFM56 + CF34 + V2500 + LEAP Engine MRO). Component Repair Services revenue ~~16%+ revenue mix (~~$0.85-0.95B; selected primary engine accessories + APU + landing gear + heat exchanger). Other Services revenue ~~7-9% revenue mix (~~$0.40-0.50B; selected primary Material Sales + Engine Sales + Other). End-market mix: Commercial Aerospace ~75%+ (post-2024 CFM56 + LEAP + CF34 + V2500) + Business Aviation ~15% + Military + Helicopter ~10%. Geographic mix: Americas ~60%+ + EMEA ~25% + Asia Pacific ~15%.

Capital position: ~$0 dividend (no dividend track post-October 2024 NYSE IPO); minimal opportunistic buybacks; aggregate capital return ~$0M FY2025 (post-October 2024 NYSE IPO Capex-light + Carlyle Group sponsor capital return prioritization); net leverage ~3.0-3.5x Net Debt/EBITDA (post-October 2024 NYSE IPO debt paydown from ~5.0x); non-investment grade B1/B+ credit rating; ~330-340M diluted shares; selected ~60%+ aggregate Carlyle Group + Singapore GIC + selected various aggregate institutional ownership concentration.

CFM56 + CF34 + V2500 Engine Services MRO Pipeline (~$4.4-4.65B Revenue)

The CFM56 + CF34 + V2500 Engine Services MRO pipeline is SARO's foundation thesis: ~$4.4-4.65B aggregate Engine Services revenue (~78%+ revenue mix) + selected primary CFM56 (Boeing 737NG + Airbus A320ceo) + CF34 (Embraer regional jets + Bombardier CRJ) + V2500 (IAE Airbus A320ceo) + LEAP (CFM Boeing 737 MAX + Airbus A320neo) + selected various aggregate ~$650-700 aggregate Engine Services revenue per engine + selected various aggregate ~$50-55B aggregate global Aerospace Engine MRO TAM + selected various aggregate ~10-12% aggregate aggregate global Aerospace Engine MRO market share + selected various aggregate ~6-7K+ aggregate annual Engine MRO shop visits. Selected primary SARO platform: CFM56 + CF34 + V2500 mature Engine MRO + post-2024 LEAP Engine MRO expansion.

FY2025 Engine Services dynamics ($4.4-4.65B aggregate Engine Services revenue): selected continued post-October 2024 ~+10-15% aggregate Engine Services revenue growth (cyclical Aerospace Engine MRO cycle + selected various aggregate post-COVID commercial aerospace recovery + selected various aggregate CFM56 + CF34 + V2500 mature engine high-cycle MRO demand) + ~$4.4-4.65B aggregate Engine Services revenue + selected various aggregate ~6-7K+ aggregate annual Engine MRO shop visits + selected various aggregate ~10-12% aggregate global Aerospace Engine MRO market share. Selected post-2024 ~$0.30-0.50 incremental annual EPS contribution as CFM56 + CF34 + V2500 Engine Services MRO pipeline drives incremental margin (post-October 2024 NYSE IPO debt paydown + selected various aggregate operational leverage).

FY2026 catalyst: continued CFM56 + CF34 + V2500 Engine Services MRO pipeline + ~$0.30-0.50 incremental annual EPS contribution under continued Russell Ford leadership (~7-year tenure). Selected aggregate ~$4.8-5.0B aggregate Engine Services revenue + selected various ~+5-8% aggregate Engine Services growth + selected various aggregate ~7-7.5K+ aggregate annual Engine MRO shop visits + selected various aggregate ~10-12% aggregate global Aerospace Engine MRO market share + selected various aggregate CFM56 + CF34 + V2500 + LEAP combined cycle. Risks: GE Aerospace (GE Aerospace branded MRO) + RTX Pratt & Whitney + Lufthansa Technik + MTU Aero Engines + ST Engineering + Singapore Aero Engine Services + Delta TechOps + selected various aggregate global Aerospace Engine MRO competitive displacement + Boeing 737 MAX + Airbus A320neo cycle considerations + post-October 2024 NYSE IPO Carlyle Group + Singapore GIC ownership concentration considerations.

LEAP + Next-Gen Engine + Component Repair Services Pipeline

The LEAP + Next-Gen Engine + Component Repair Services pipeline is SARO's primary growth thesis: selected continued post-2024 selected various aggregate LEAP Engine MRO pipeline (selected primary post-2024 ~$300-400M aggregate annual LEAP MRO revenue ramp + selected primary CFM International LEAP-1A + LEAP-1B + selected primary post-2024 CFM Joint Venture certified LEAP shop) + selected various aggregate Component Repair Services aggregate ~$0.85-0.95B aggregate revenue (~16%+ aggregate revenue mix; selected primary engine accessories + Auxiliary Power Units (APU) + landing gear + heat exchanger + selected various aggregate component repair).

FY2025 LEAP + Component Repair dynamics: selected primary post-2024 ~$300-400M aggregate annual LEAP MRO revenue (LEAP-1A + LEAP-1B + post-2024 CFM Joint Venture certified LEAP shop) + selected various aggregate ~$0.85-0.95B aggregate Component Repair Services revenue + selected various aggregate ~$0.40-0.50B aggregate Other Services revenue + selected various aggregate engine accessories + APU + landing gear + heat exchanger. Selected post-2024 ~$0.20-0.30 incremental annual EPS contribution as LEAP + Component Repair Services pipeline drives incremental margin.

FY2026 catalyst: continued LEAP + Next-Gen Engine + Component Repair Services pipeline + ~$0.20-0.30 incremental EPS contribution. Selected aggregate ~$400-550M aggregate annual LEAP MRO revenue (+25-40% LEAP ramp) + selected various aggregate ~$0.90-1.0B aggregate Component Repair Services revenue + selected various aggregate ~$0.45-0.55B aggregate Other Services revenue + selected various aggregate CFM Joint Venture LEAP shop expansion. Risks: GE Aerospace + RTX Pratt & Whitney + Lufthansa Technik + MTU Aero Engines + ST Engineering + Delta TechOps + selected various aggregate LEAP + Next-Gen Engine MRO competitive displacement + selected various aggregate CFM International LEAP shop access considerations + post-2024 CFM Joint Venture renewal considerations.

Capital Position + Balance Sheet

Capital position + balance sheet: ~$0 dividend (no dividend track post-October 2024 NYSE IPO) + minimal opportunistic buybacks + aggregate capital return ~$0M FY2025 (post-October 2024 NYSE IPO Capex-light + Carlyle Group sponsor capital return prioritization) + net leverage ~3.0-3.5x Net Debt/EBITDA (post-October 2024 NYSE IPO debt paydown from ~5.0x) + non-investment grade B1/B+ credit rating + ~330-340M diluted shares + selected ~60%+ aggregate Carlyle Group + Singapore GIC + selected various aggregate institutional ownership concentration.

FY2026 catalyst: continued ~$0M aggregate annual capital return (post-October 2024 NYSE IPO debt paydown phase) + selected continued ~3.0-3.5x net leverage (declining as IPO debt paydown progresses) + selected various aggregate ~60%+ Carlyle Group + Singapore GIC ownership concentration + selected various aggregate post-October 2024 NYSE IPO continued operational deleveraging. Selected ~60%+ Carlyle Group + Singapore GIC ownership concentration + selected non-investment grade B1/B+ credit rating support continued Engine Services + LEAP + Component Repair expansion + tuck-in M&A capacity.

Key Core Metrics

FY2025 revenue ~$5.65-5.95B (+10-15% YoY) vs $5.24B FY2024; adj. EPS ~$1.15-1.40
1 segment: independent Aerospace Engine MRO ~100%
Structure: Engine Services ~78%+ ($4.4-4.65B) + Component Repair Services ~16%+ ($0.85-0.95B) + Other Services ~7-9% ($0.40-0.50B)
End-market mix: Commercial Aerospace ~75%+ + Business Aviation ~15% + Military + Helicopter ~10%
Geographic mix: Americas ~60%+ + EMEA ~25% + Asia Pacific ~15%
Engine platforms: CFM56 (Boeing 737NG + A320ceo) + CF34 (Embraer + Bombardier CRJ) + V2500 (A320ceo) + LEAP (737 MAX + A320neo)
Global Aerospace Engine MRO market share: ~10-12%; ~6-7K+ annual shop visits
LEAP MRO revenue (post-2024): ~$300-400M aggregate annual
~40+ aggregate global Aerospace Engine MRO facilities
Global Aerospace Engine MRO TAM: ~$50-55B
Net leverage ~3.0-3.5x Net Debt/EBITDA (post-October 2024 NYSE IPO debt paydown from ~5.0x)
~330-340M diluted shares; ~$0M total capital return FY2025
~$0 dividend (no dividend track post-October 2024 NYSE IPO)
Non-investment grade B1/B+ credit rating
~60%+ Carlyle Group + Singapore GIC + institutional ownership concentration

Market Evaluation

SARO FY2026 market evaluation: at ~$28-35 share price + ~330-340M diluted shares = ~$9-12B market cap; ~$0 aggregate annual dividend (no dividend track). Selected primary SARO peers: GE Aerospace (GE, ~$200-230B Mcap; OEM + branded MRO competitor) + RTX (RTX, ~$160-180B; Pratt & Whitney engines competitor) + Lufthansa Technik (Lufthansa subsidiary) + MTU Aero Engines (German) + ST Engineering (Singapore) + Singapore Aero Engine Services + Delta TechOps (Delta Air Lines subsidiary) + AAR Corp (AIR, ~$3-4B; aviation services) + HEICO (HEI, ~$25-30B; aftermarket parts) + TransDigm (TDG, ~$70-80B; aftermarket) + selected various aggregate global Aerospace Engine MRO + aftermarket companies. Selected SARO ~22-28x P/E + selected ~13-16x EV/EBITDA + selected ~$0 dividend yield + selected aggregate ~$6.0-6.4B aggregate FY2026 revenue + selected aggregate ~$1.40-1.75 aggregate FY2026 EPS + selected aggregate ~$0M aggregate FY2026 capital return + selected aggregate Engine Services + LEAP + Component Repair pipeline. FY2026 base case: ~$6.0-6.4B aggregate revenue + ~$1.40-1.75 adj. EPS + ~$0M aggregate capital return. Bull case: CFM56 + CF34 + V2500 mature engine high-cycle MRO continued demand + LEAP MRO ramp acceleration ($400-550M FY2026) + post-October 2024 NYSE IPO debt paydown (net leverage 2.5-3.0x) + post-COVID commercial aerospace recovery + Boeing 737 MAX + Airbus A320neo cycle continuation drives ~$6.2-6.6B aggregate revenue + ~$1.55-2.00 EPS. Bear case: GE Aerospace + RTX Pratt & Whitney + Lufthansa Technik + MTU Aero Engines + ST Engineering + Singapore Aero Engine Services + Delta TechOps + AAR Corp competitive intensification + Boeing 737 MAX + Airbus A320neo cycle considerations + post-October 2024 NYSE IPO Carlyle Group + Singapore GIC ownership concentration considerations + post-2024 CFM Joint Venture LEAP renewal considerations + Federal Reserve interest rate cycle considerations + post-2018 Russell Ford CEO succession planning considerations drives ~$5.65-5.95B revenue + ~$1.00-1.30 EPS. The thesis depends on CFM56 + CF34 + V2500 Engine Services MRO pipeline + LEAP + Component Repair Services pipeline + post-October 2024 NYSE IPO debt paydown.