StandardAero, Inc. (SARO) AI Stock Analysis

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. The company operates through two segments: Engine Services and Component Repair Services. Engine Services offers maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering solutions to commercial aerospace, military and helicopter, and business aviation end markets. Component Repair Services delivers engine component and accessory repairs across commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is based in Scottsdale, Arizona.

StandardAero expanded revenue from $3.48B in FY2021 to $6.06B in FY2025, reflecting a 4-year revenue CAGR of 14.9%. Net income transitioned from -$30.7M in FY2021 to $277.4M in FY2025, lifting net margin to 4.6%. Operating margin also improved annually from 4.5% in FY2021 to 9.1% in FY2025. For the trailing twelve months, revenue reached $6.32B with net margin of 5.1% and diluted EPS of $0.97. In the latest quarter ended June 30, 2026, quarterly revenue growth YoY was 4.6%, while quarterly earnings growth YoY increased 45.0%.

As of June 30, 2026, StandardAero held $179.1M in cash and short-term investments against $2.56B in total debt, leaving net debt at $2.38B. Shareholders' equity stood at $2.75B, yielding a debt-to-equity ratio of 0.93, while the current ratio was 2.13. For FY2025, the company generated $316.7M in operating cash flow and invested $112.8M in capital expenditures, delivering $203.9M in free cash flow.

At a share price of $21.31, StandardAero trades at a trailing P/E of 22.0x and a forward P/E of 14.2x, compared to the median of its US-listed Industrials peers of 24.8x trailing P/E and 17.2x forward P/E. Its price-to-sales ratio is 1.1x versus the peer median of 1.5x, and EV/EBITDA is 12.5x versus 13.9x. The stock has posted a 1-year return of -23.6%, lagging the S&P 500 (SPY) return of 16.8% over the same period.

Wall Street coverage includes 9 Strong Buy, 2 Buy, and 4 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target of $34.03 represents an upside of 59.7% over the last close of $21.31. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $6.45B and EPS of $1.18, representing 42.1% EPS growth. StandardAero has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 9, 2026.

This page is an AI-written research summary of StandardAero, Inc. (SARO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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