StandardAero Updates 2026 Outlook After Engine Profit Jump

The Tip Desk · November 6, 2026 · 3 min read

Third-quarter 2026 revenue rose 4.0% to $1,557.4 million, and adjusted diluted earnings were $0.39 a share, up 30.0% from a year earlier, as Engine Services Adjusted EBITDA rose 24.0%.

StandardAero (SARO), an independent provider of aerospace engine aftermarket services, reported third-quarter 2026 revenue of $1,557.4 million, up 4.0% year over year, and updated its full-year 2026 outlook as Engine Services Adjusted EBITDA grew 24.0% year over year.

For the three months ended September 30, 2026, revenue was $1,557.4 million, up 4.0% from $1,498.0 million a year earlier, after 4.6% year-over-year growth in the second quarter. Adjusted EBITDA was $224.9 million, up 15.0% from $195.6 million a year earlier. Adjusted EBITDA margin was 14.4%, matching the second-quarter margin. The company said the margin increase versus the year-ago 13.1% reflected volume, mix, productivity improvements and the elimination of pass-through revenue.

Net income was $92.8 million, up 36.2% from $68.1 million a year earlier. Diluted GAAP earnings were $0.28 a share. Adjusted diluted EPS was $0.39, up 30.0% from $0.30 a year earlier, after 24% year-over-year growth in the second quarter. Cash flow provided by operations was $128.9 million; adjusted free cash flow for the quarter was $99.2 million.

Chief Executive Officer Paul McElhinney said the results showed a diversified portfolio holding up despite elevated fuel prices and geopolitical uncertainty, with record 24% Adjusted EBITDA growth in Engine Services.

Engine Services, the larger of the two reportable segments, posted revenue of $1,368.8 million, up 3.5% from $1,322.2 million a year earlier. The company attributed the change primarily to volume, partially offset by the elimination of pass-through revenue. Segment Adjusted EBITDA was $205.1 million, up 24.0% from $165.4 million a year earlier, which the company said was driven by volume, mix, productivity gains and an increase in used serviceable material. Segment Adjusted EBITDA margin was 15.0%, a 250-basis-point increase from 12.5% a year earlier.

Component Repair Services revenue was $188.7 million, up 7.3% from $175.8 million a year earlier, which the company said was driven by volume. Segment Adjusted EBITDA was $48.6 million, down 9.9% from $54.0 million a year earlier, which the company said was driven primarily by productivity and mix. Segment Adjusted EBITDA margin was 25.8%, a 490-basis-point decline from 30.7% a year earlier.

Growth across the three end markets was uneven. Business aviation revenue grew 7.4% from the prior-year period, military and helicopter grew 7.2%, and commercial aerospace grew 1.3%.

On October 28, 2026, the board approved a $560.0 million increase to the share repurchase program, bringing total authorization to $1.0 billion. The company had repurchased about $160.1 million of common shares to date, including $50.1 million in the third quarter, leaving $850.0 million available. It said it intends to enter a $350.0 million accelerated share repurchase with Morgan Stanley; after completion, about $500.0 million would remain under the program.

StandardAero is updating full-year 2026 guidance to revenue of $6,525 million to $6,645 million, Adjusted EBITDA of $905 million to $920 million, and Adjusted diluted EPS of $1.57 to $1.62. Engine Services revenue is guided at $5,770 million to $5,870 million and Component Repair Services at $755 million to $775 million. Adjusted free cash flow is guided at $270 million to $300 million. The company said it would provide guidance for Adjusted Free Cash Flow going forward instead of Free Cash Flow. Revenue and Engine Services guidance include the effect of eliminating about $300 million in material pass-through revenue.

The company said it expects commercial aerospace end-market revenue growth of low-double digit to mid-teens year over year, military and helicopter growth of low-double digit, and business aviation growth of high-single digit to low-double digit.