StandardAero Q3 revenue beats estimates, helped by strong demand across businesses, raises  2025 rev guidance

Reuters11-11
StandardAero Q3 revenue beats estimates, helped by strong demand across businesses, raises  2025 rev guidance

Overview

  • StandardAero Q3 revenue grows 20.4% yr/yr, beating analyst expectations

  • Adjusted EBITDA for Q3 beats consensus, driven by strong demand

  • Company raises full-year 2025 guidance for revenue, EBITDA, and free cash flow

Outlook

  • StandardAero raises full-year 2025 revenue guidance to $5.97 bln-$6.03 bln

  • Company expects 2025 Adjusted EBITDA between $795 mln and $815 mln

  • Free Cash Flow for 2025 now projected at $170 mln-$190 mln

Result Drivers

  • STRONG DEMAND - Co attributes revenue growth to strong demand across commercial, business aviation, and military and helicopter markets

  • ENGINE SERVICES GROWTH - Revenue increase driven by ramping volumes from LEAP and CFM56 programs in Engine Services

  • COMPONENT REPAIR SERVICES - Growth in Component Repair Services aided by ATI acquisition and favorable mix

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$1.5 bln

$1.42 bln (8 Analysts)

Q3 EPS

$0.20

Q3 Net Income

$68.12 mln

Q3 Adjusted EBITDA

Beat

$195.6 mln

$189.63 mln (8 Analysts)

Q3 Operating Income

$137.34 mln

Q3 Pretax Profit

$92.78 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy"

  • Wall Street's median 12-month price target for StandardAero, Inc. is $35.00, about 23.3% above its November 7 closing price of $26.84

  • The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBw7S3Jjya

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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