StandardAero Reports 16.2% Revenue Growth to $1.44 Billion in Latest Quarter

StandardAero, Inc. reported significant financial growth in its latest quarterly results, with revenue reaching $1.44 billion for the three months ended March 31, 2025, a 16.2% increase from $1.24 billion in the same period last year. The company's net income surged to $62.9 million, compared to just $3.2 million in the prior year, marking a substantial increase of 1,875%. This growth was driven by strong performance across both the Engine Services and Component Repair Services segments, particularly in the commercial aerospace and business aviation markets.

The company's operational metrics also reflected positive trends, with the Engine Services segment generating $1.27 billion in revenue, up 15.6% year-over-year, while the Component Repair Services segment saw a 20.9% increase to $167.3 million. The acquisition of Aero Turbine, completed in August 2024, contributed approximately $21.9 million to the Component Repair Services revenue. The overall cost of revenue increased by 15.5% to $1.22 billion, primarily due to higher material and labor costs associated with increased service volumes.

In terms of strategic developments, StandardAero completed its initial public offering (IPO) on October 2, 2024, raising net proceeds of approximately $1.20 billion. Following the IPO, a secondary offering was executed on March 26, 2025, by affiliates of The Carlyle Group and GIC, which sold 36 million shares at $28.00 per share. The company also entered into a new credit agreement in October 2024, which included a $1.63 billion term loan and a $750 million revolving credit facility, aimed at refinancing existing debt and supporting future growth initiatives.

Operationally, StandardAero reported a total employee headcount of 5,000 as of March 31, 2025, reflecting its commitment to expanding its workforce to support growth. The company also noted a significant increase in cash reserves, with cash at the end of the quarter amounting to $140.8 million, up from $102.6 million at the end of 2024. This increase in liquidity, combined with $624.1 million available under the new revolving credit facility, positions the company well for future investments and operational needs.

Looking ahead, StandardAero anticipates continued growth driven by increasing demand for aftermarket services in the aerospace sector, particularly as older aircraft and engines require more maintenance. However, the company also acknowledged potential risks, including supply chain disruptions and inflationary pressures that could impact costs. Management is focused on addressing these challenges while leveraging its strong market position to capitalize on growth opportunities in the coming quarters.