StandardAero Inc

We established a position in StandardAero, a leading provider of maintenance, repair, and overhaul services for commercial, business aviation, and military aircraft engines. The company benefits from recurring revenue, long-duration customer relationships, high regulatory barriers to entry, and a growing installed base of aircraft requiring ongoing service. As global travel continues to recover and defense spending remains elevated, we believe StandardAero is well positioned to generate durable free cash flow and compound intrinsic value over time.

We established a position in StandardAero, a leading provider of maintenance, repair, and overhaul services for commercial, business aviation, and military aircraft engines. The company benefits from recurring revenue, long-duration customer relationships, high regulatory barriers to entry, and a growing installed base of aircraft requiring ongoing service. As global travel continues to recover and defense spending remains elevated, we believe StandardAero is well positioned to generate durable free cash flow and compound intrinsic value over time.

StandardAero provides maintenance, repair, and overhaul (MRO) services for aircraft engines, generating 60% of revenue from commercial markets, 20% from business aviation, and 20% from the military. The company enjoys strong pricing power and generates 77% of its revenue from long-term agreements, serving approximately 5,000 customers, including airlines and the U.S. military. With 80% of revenue from platforms where it holds a #1 or #2 market position, and a network of 55 test cells, StandardAero has significant barriers to entry. Its revenues are driven by Global Commercial Air Traffic, which has grown at a resilient 5.6% annually for the past 40 years, making it an outstanding business with a substantial margin of safety.

StandardAero provides maintenance, repair, and overhaul (MRO) services for aircraft engines, generating 60% of revenue from commercial markets, 20% from business aviation, and 20% from the military. The company generates 77% of its revenue from long-term agreements and serves approximately 5,000 customers, including airlines and the U.S. military. With 80% of revenue from platforms where it holds a #1 or #2 market position, StandardAero benefits from strong pricing power and a resilient growth rate of 5.6% annually in global commercial air traffic. We are thrilled to own this outstanding business with a substantial margin of safety.

During the quarter, we added new positions in aerospace supplier StandardAero, which operates in the aerospace aftermarket and maintenance, repair and overhaul (MRO) space. StandardAero is well-positioned to benefit from trends in airline fleet replacement and growth in aerospace demand. The company’s scale and reputation are clear advantages given the industry’s high barriers to entry. StandardAero’s resilient business model, combined with experienced leadership and a disciplined M&A approach, positions the company well to take advantage of near-term tailwinds from aging fleets, as well as secular growth in aerospace demand.