StandardAero's third quarter 2026 results beat profit estimates and drove a full-year guidance raise

StandardAero reported third-quarter revenue of $1.56 billion, essentially in line with estimates, while Adjusted EBITDA of $224.9 million surpassed expectations. The company raised its full-year 2026 guidance for revenue, Adjusted EBITDA, and Adjusted EPS, citing strong performance in its Engine Services segment and continued strategic elimination of low-margin pass-through revenue.

Key Highlights

• Adjusted EBITDA margin expanded 130 basis points to 14.4% as the company navigates the phase-out of ~$300 million in material pass-through contracts.
• Engine Services Adjusted EBITDA surged 24% year-over-year to $205.1 million, driven by volume growth and increased use of serviceable material.
• The Board approved a $560 million increase to the share repurchase program, bringing total authorization to $1.0 billion, and intends to initiate a $350 million accelerated share repurchase.