StandardAero inc

Latest Results (21.12.2024):

Revenue Growth

In the third quarter of 2024, StandardAero Inc. reported a significant revenue increase of 13.2% year-over-year, reaching $1,244.6 million. This growth was primarily driven by the Engine Services and Component Repair Services segments, with notable strength in the commercial aerospace and business aviation markets, which saw increases of 20% and 15%, respectively.

Net Income Improvement

StandardAero Inc. achieved a net income of $16.4 million in the third quarter of 2024, a substantial turnaround from a net loss of $17.9 million in the same period the previous year. The net income margin improved to 1.3%, reflecting a 3.0 percentage point increase compared to the prior year's quarter.

Adjusted EBITDA Growth

The company's adjusted EBITDA for the third quarter of 2024 rose by 26.0% to $168.4 million, compared to $133.7 million in the previous year. This increase was attributed to revenue growth across segments and margin expansion due to operating leverage, positive mix, and pricing and cost initiatives, resulting in an adjusted EBITDA margin of 13.5%.

Capital Expenditures

StandardAero Inc. reported capital expenditures of $25.3 million for the third quarter of 2024, representing 2.0% of revenue. This increase from $13.9 million in the prior year period reflects ongoing investments in growth initiatives, including the LEAP-1A/-1B program and the CFM56 Center of Excellence facility in Dallas.

IPO and Debt Refinancing

Following its initial public offering (IPO) completed on October 2, 2024, StandardAero Inc. raised approximately $1.2 billion in net proceeds, which were used to pay down debt and significantly deleverage the business. The company also refinanced its capital structure, resulting in over $130 million in expected annual interest savings compared to pre-IPO levels.