StandardAero, Inc. Q2 FY2025 earnings call

• Strategic priorities include accelerating the ramp-up of LEAP program, expanding CFM56 and CF34 capacity, and enhancing component repair services. - LEAP program: Completed first shop visits, began deliveries from San Antonio, sales tripled sequentially, bookings now exceed $1.5 billion. - CF34 and CFM56: CF34 grew due to GE relationship expansion, CFM56 is adding overhaul capacity, inducted first PRSV at Dallas-Fort Worth facility. - Business aviation: Expanded Augusta facility with 60% capacity increase, on track for Q3 2025 opening, saw record HTF7000 sales. - Component Repair Services: Expanding OEM authorized LEAP repairs, integrating with engine services for increased third-party sales and in-sourcing.

Engine Services: Second quarter revenue increased to $1.35 billion, a 11.5% growth compared to the prior year period. Adjusted EBITDA grew 16% and margin expanded 50 basis points year-on-year to 13.2%. Component Repair Services: Second quarter revenue increased 31% to $178 million compared to the prior year period. Adjusted EBITDA grew 50% year-on-year to 29%, which is a record adjusted EBITDA margin quarter in CRS.

• Increased 2025 revenue guidance to between $5.875 billion and $6.025 billion. - Adjusted EBITDA guidance is now in the range of $790 million and $810 million. - Engine Services expected adjusted EBITDA margin of about 13.3%, Component Repair Services expected segment adjusted EBITDA margins of about 28.3%.

• Statements include forward-looking statements subject to risks and uncertainties in SEC filings, such as supply chain issues and the ever-changing tariff landscape.

Q: Seth Seifman from JPMorgan on Engine Services revenue cadence A: Daniel Satterfield on no change in cadence, top drivers remain same Q: Doug Harned from Bernstein on LEAP, CFM56, CF34 growth A: Russell W. Ford on different dynamics for each program, LEAP ramping carefully, CFM56 leveraging process knowledge, CF34 due to engine age Q: Myles Walton from Wolfe Research on CFM56 engine exchange strategy A: Daniel Satterfield on asset-light structure, exchanging engines with MRO process, leveraging CRS capabilities Q: Ken Herbert from RBC Capital Markets on LEAP backlog and conversion to revenue A: Russell W. Ford on strong bookings, $1.5 billion backlog, diverse customer base, work scope time frames Q: Sheila Kahyaoglu from Jefferies on CFM56 engine exchange program margins and other engine programs A: Daniel Satterfield on normal margins on MRO side, Alex Trapp on doing similar on other engine programs Q: Jordan Lyonnais from Bank of America on free cash flow cadence A: Daniel Satterfield on working capital unwinding in second half, strong demand driving free cash flow Q: Krista Friesen from CIBC on capital allocation between organic, M&A, etc.

A: Daniel Satterfield on various organic investments like Dallas-Fort Worth expansion, Augusta facility, GE relationship, and M&A like ATI Q: Kristine Liwag from Morgan Stanley on CFM56 engine exchange program economics and inventory A: Russell W. Ford on timing and cost advantages, Daniel Satterfield on normal margins, Russell W. Ford on one-for-one approach not pool inventory Q: Gavin Parsons from UBS on ES repairs in-sourcing and ramp A: Daniel Satterfield on in-sourcing driven by repair development and acquisitions, Russell W. Ford on engineering staff and acquisitions expanding repair catalog Q: Myles Walton from Wolfe Research on GE's LEAP shop capacity plan A: Russell W. Ford on no change in pipeline, airlines pushing for longer-term contracts earlier