Abstract
StandardAero, Inc. will release its quarterly results on May 7, 2026, Post Market; current projections point to revenue of 1.49 billion US dollars, EPS of 0.28, and EBIT of 144.47 million US dollars, while investors will compare margins to the last quarter’s baseline to assess progress on mix and cost execution.
Market Forecast
The latest projections indicate revenue of 1.49 billion US dollars for the current quarter, up 10.90% year over year, with EPS of 0.28 up 54.76% year over year and EBIT of 144.47 million US dollars up 16.01% year over year. No explicit guidance for gross profit margin or net margin has been provided; investors will benchmark against the last quarter’s 13.77% gross profit margin and 4.92% net profit margin when assessing performance quality alongside the EPS trajectory.
The company’s main business mix remains anchored by engine and component services, where execution on contract backlogs, program ramps, and parts availability are the primary determinants of revenue conversion and profitability. Within this mix, the most promising revenue driver is the Commercial Aerospace engine services line, which contributed approximately 952.03 million US dollars last quarter; while segment-level year-over-year growth was not disclosed, recent program awards and general terms agreements support an expansion pipeline through 2026.
Last Quarter Review
Last quarter, StandardAero, Inc. reported revenue of 1.60 billion US dollars, a gross profit margin of 13.77%, GAAP net profit attributable to the parent company of 78.64 million US dollars for a 4.92% net profit margin, and adjusted EPS of 0.24 versus a loss of 0.04 in the year-ago period.
A key financial highlight was sequential improvement in profitability, with net profit up 15.44% quarter on quarter, underpinned by revenue resilience and stable conversion despite continuing parts and supply tightness. The main business contribution was led by Commercial Aerospace at 952.03 million US dollars, followed by Business Aviation at 309.73 million US dollars, Military and Helicopter at 281.08 million US dollars, and Other at 57.18 million US dollars, as total revenue rose 13.51% year over year to 1.60 billion US dollars.
Current Quarter Outlook
Commercial Aerospace Services: Near-term delivery cadence and margin mix
Commercial Aerospace remains the largest revenue contributor, and its performance will set the tone for this quarter’s results. The latest consensus implies 1.49 billion US dollars in total revenue and 144.47 million US dollars in EBIT, which, if achieved, would represent a 10.90% and 16.01% year-over-year increase respectively, suggesting operating leverage on growing engine shop throughput and higher-value workscopes. Margin quality will be tested against the last quarter’s 13.77% gross margin baseline, with the mix of heavy overhauls, parts pass-through, and turnaround times shaping gross-to-operating conversion.
Execution this quarter hinges on the intake and turnaround of narrowbody engine work, where new agreements provide incremental visibility. The general terms agreement signed on March 5, 2026 to provide maintenance, repair, and overhaul support for LEAP-1A, LEAP-1B, and CFM56-7B engines broadens pipeline coverage and can incrementally raise shop utilization if material availability aligns with schedules. Given consensus EPS of 0.28, up 54.76% year over year, operating discipline on labor hours, rework rates, and procurement will be essential to protect incremental margins even if parts inflation and lead times remain uneven.
Given the high contribution from this segment last quarter (approximately 952.03 million US dollars), investors will focus on whether intake growth translates into proportional revenue recognition, particularly for larger workscopes that can skew revenue mix and compress or expand margins depending on pass-through intensity. The degree of pass-through revenue remains a watchpoint highlighted by multiple institutions; reduced pass-through exposure would tend to lift gross margin while higher pass-through content may support revenue growth but temper margin progress. The sequential net profit expansion seen last quarter provides a constructive starting point, but sustaining that requires stable vendor performance and on-time material delivery this quarter.
Helicopter and Defense Programs: Upside potential from awards and contract execution
The Helicopter and Defense-related activity presents a supportive demand outlook in 2026, with several catalysts in place this quarter. On March 11, 2026, the company was selected as a preferred maintenance provider by Robinson Helicopter for R66 engines, which can add predictable helicopter maintenance flow and deepen relationships with platform operators. On April 22, 2026, the long-term agreement with Rolls-Royce to provide repair and overhaul support for the MT7 marine gas turbine engine from the Maryville, Tennessee facility introduced program-based revenue tied to a sustained customer need.
While last quarter’s Military and Helicopter revenue is estimated at 281.08 million US dollars, the near-term trajectory depends on transition from award to execution, the pace of induction, and quality-driven cycle times that ensure predictable cash conversion. With program ramps, the margin profile will reflect learning-curve gains and throughput improvements; early-phase work often carries lower incremental margin that improves as volumes stabilize. For the current quarter, investors will look for tangible evidence of steady induction rates and minimal schedule slippage, which would support the 16.01% forecasted EBIT growth and the implied EPS step-up.
Another consideration is parts sourcing for defense and helicopter components, where supplier lead times can influence both revenue timing and margin mix. Any improvements in parts availability versus last quarter can unlock faster revenue recognition and limit overtime or expediting costs. The combination of helicopter maintenance agreements and marine turbine support diversifies the revenue base within the quarter and can mitigate volatility if commercial intake timing fluctuates, supporting the overall EBIT expansion scenario embedded in consensus.
Key stock price drivers this quarter: Delivery pace, pass-through mix, and backlog monetization
Three factors are likely to drive share performance around this print. The first is the delivery pace relative to intake in the commercial engine lines, as throughput confirmation will validate the revenue estimate of 1.49 billion US dollars and the EPS path to 0.28. The second is pass-through mix and its effect on margins; consensus expects healthy top-line growth but investors are keen to see whether the company can hold or improve on the 13.77% gross margin baseline by tilting mix toward higher-value-added work rather than low-margin parts pass-through.
The third is backlog monetization evidenced by contract announcements and facility loading, where March and April program updates have been constructive: the LEAP-family and CFM56-7B coverage agreement, Robinson Helicopter selection, and the MT7 marine turbine support deal. These updates, combined with an anticipated acceleration in the second half of 2026 cited by institutions, set an execution bar for management commentary on quarterly call guidance, particularly around capacity utilization, hiring, and material sourcing plans. If management signals improving parts availability and steady induction growth, the forecasted 16.01% year-over-year EBIT increase appears achievable, with upside if mix favors higher-margin workscopes.
Cash conversion and working capital discipline will also be watched closely. Last quarter’s improvement in net profit, up 15.44% sequentially, sets a favorable base; sustaining this trend will require careful management of inventory and receivables as volumes scale. Given the last quarter’s net margin of 4.92%, even small improvements in operational efficiency and pricing can materially impact EPS, which is why the consensus step-up to 0.28 is a focal point for this quarter.
Analyst Opinions
The balance of recent institutional views since January 1, 2026 through April 30, 2026 is predominantly bullish, with five Buy/Overweight/Outperform views versus one Neutral, implying roughly 83% of opinions favor a positive setup ahead of May 7, 2026.
J.P. Morgan reiterated a Buy rating with a 38.00 US dollars price target in April 2026, highlighting confidence in the earnings trajectory and the ability to execute on the expanding engine services pipeline. RBC Capital Markets maintained an Outperform rating and a 37.00 US dollars price target in February 2026, emphasizing that the company reset 2026 expectations and that consensus already reflects pass-through revenue headwinds, setting a cleaner backdrop; RBC also pointed to a stronger engine aftermarket outlook and modeled margin improvement into 2026–2027, while noting that supply chain tightness may persist. BTIG initiated at Buy with a 35.00 US dollars price target in April 2026, citing a constructive contract cadence and a favorable mix shift potential as intake expands in key programs.
Wells Fargo initiated coverage at Overweight with a 32.00 US dollars price target in April 2026, reflecting a view that the shares can rerate on visibility into throughput and incremental profitability from recent program wins. CIBC also maintained a Buy with a 38.00 US dollars target in March 2026, reinforcing the theme of revenue visibility and margin normalization as the operational environment gradually improves. UBS maintained Neutral with a 35.00 US dollars target in February 2026; however, the prevailing analyst majority skews positive, centering on three near-term drivers: improved LEAP-family and CFM56-7B coverage, helicopter and marine turbine program wins that broaden execution lanes, and an EPS inflection supported by a disciplined approach to throughput and cost control.
In synthesizing the majority view, analysts expect StandardAero, Inc. to deliver on the 10.90% year-over-year revenue growth implied by the current quarter’s projections and to expand EBIT by 16.01% as execution benefits begin to outweigh lingering supply constraints. The bullish case points to the alignment between recent program awards and facility capabilities, which, coupled with stable demand, should translate into higher utilizations and steadier conversion in 2026. The outsized EPS growth forecast of 54.76% year over year underscores the potential for operating leverage and a cleaner margin framework as pass-through headwinds are already embedded in expectations. On the call, any commentary that confirms improving parts flow, on-time induction ramps, and progress on labor and capacity planning would validate the bullish stance and support a path to sustained margin expansion through the year.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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