Overview

• Aerospace engine aftermarket provider's Q1 revenue grew 13%, beating analyst expectations

• Q1 adjusted EBITDA beat analyst estimates, though margin declined due to segment mix

• Company acquired Unified Turbines and repurchased 2 mln shares for $60.1 mln

Outlook

• StandardAero raises FY26 revenue guidance to $6.33 bln-$6.45 bln

• Company lifts FY26 Adjusted EPS outlook to $1.40-$1.50

• StandardAero expects low-double digit to mid-teens FY26 growth in commercial aerospace revenue

Result Drivers

• END MARKET DEMAND - Co said Q1 revenue growth was driven by strong demand across commercial aerospace, business aviation, and military & helicopter segments

• GROWTH PLATFORMS - Engine Services segment growth was led by ramp-up in LEAP and CFM56 platforms and continued momentum on other key platforms

• COMPONENT REPAIR - Component Repair Services segment benefited from robust demand in commercial aerospace, offset by some softness in military due to delayed impact of prior U.S. Government shutdown

Company press release: ID:nBwx7sZza

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$1.63 bln	$1.48 bln (11 Analysts)
Q1 EPS		$0.24
Q1 Net Income		$79.93 mln
Q1 Adjusted EBITDA	Beat	$203.20 mln	$197.99 mln (9 Analysts)
Q1 Operating Income		$143.10 mln
Q1 Pretax Profit		$104.95 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 33.3% above its May 6 closing price of $26.26

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 26 three months ago

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