Q4 2025 StandardAero, Inc. Earnings Call Transcript
Key Points
- StandardAero Inc (SARO) reported a record year in 2025 with a 16% increase in revenues and a 17% rise in adjusted EBITDA, showcasing strong financial performance.
- The company generated significant free cash flow of $209 million, with over $300 million generated in the second half of the year, supported by an asset-light business model.
- StandardAero Inc (SARO) made substantial progress on its LEAP program, inducting 60 LEAP engines in 2025, up from 10 in 2024, and achieving a 2.5x revenue increase in the second half of the year.
- The company expanded its Augusta business aviation facility, adding MRO capacity and expanded hangar space, which will accelerate growth on the HTF7000 engine platform.
- StandardAero Inc (SARO) improved its leverage ratio to 2.4x, providing capital allocation flexibility, and authorized a $450 million share repurchase program in December 2025.
- The company faced supply chain challenges characterized by part availability delays, impacting operations and requiring navigation through these constraints.
- A small fire at the Phoenix CRS facility in December 2025 led to a shutdown for nearly the entire month, affecting revenue growth and margins.
- The U.S. government shutdown impacted the military business segment, affecting growth in the fourth quarter of 2025.
- Despite strong growth, the LEAP and CFM56 programs remain initially dilutive, impacting overall margins until they reach profitability in 2026.
- The company anticipates continued supply chain constraints, with on-time delivery metrics still below desired levels, potentially affecting future growth.
Good afternoon, and welcome to StandardAero's fourth-quarter and full-year 2025 earnings conference call. (Operator Instructions) Please note this conference is being recorded.
I would now like to turn the call over to Rama Bondada, Senior Vice President of Investor Relations. Please proceed.
Thank you, and good afternoon, everyone. Welcome to StandardAero's Fourth Quarter and Full Year 2025 Earnings Call. I'm joined today by Russell Ford, our Chairman and Chief Executive Officer; Dan Satterfield, our Chief Financial Officer; and Alex Trapp, our Chief Strategy Officer.
Alongside today's call, you can find our earnings release as well as the accompanying presentation on our website at ir.standardaero.com. An audio replay of this call will also be made available, which you can access on our website or by phone. The phone number for the audio replay is included in the press release announcing this call.
Before we begin, as always, I would like to remind everyone that today's
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