StandardAero Inc (NYSE:SARO) Posts Mixed Q2 2025 Results with Strong Revenue Growth but EPS Miss

StandardAero Inc (NYSE:SARO) Reports Q2 2025 Earnings: Mixed Results Amid Strong Revenue Growth

StandardAero Inc released its second-quarter 2025 earnings, delivering revenue growth that exceeded expectations but falling short on earnings per share (EPS). The company reported revenue of $1.53 billion, up 13.5% year-over-year and slightly above analyst estimates of $1.53 billion. However, adjusted EPS came in at $0.20, missing the consensus estimate of $0.23.

Key Financial Highlights

• Revenue: $1.53 billion (vs. $1.53 billion estimated)
• EPS: $0.20 (vs. $0.23 estimated)
• Net Income: $67.7 million, up sharply from $5.4 million in Q2 2024
• Adjusted EBITDA: $204.6 million, a 20.1% increase year-over-year
• Net Debt Reduction: Net debt declined to $2.26 billion from $3.27 billion a year ago

Market Reaction

Following the earnings release, StandardAero’s stock declined approximately 3.8% in after-hours trading. The market’s reaction appears to reflect disappointment in the EPS miss despite strong top-line performance. Investors may also be weighing the company’s revised full-year guidance against broader macroeconomic concerns, including supply chain constraints mentioned in the earnings call.

Segment Performance

• Engine Services: Revenue rose 11.5% to $1.35 billion, driven by strong aftermarket demand in commercial aerospace and business aviation.
• Component Repair Services: Revenue surged 31.3% to $178.3 million, bolstered by the acquisition of Aero Turbine, Inc. (ATI) and robust demand across platforms.

Outlook vs. Analyst Estimates

StandardAero raised its full-year 2025 guidance, now expecting:

• Revenue: $5.875–$6.025 billion (up from prior guidance of $5.825–$5.975 billion)
• Adjusted EBITDA: $790–$810 million (up from $775–$795 million)

Analysts had projected full-year revenue of $6.06 billion and an EBITDA margin in line with the company’s updated outlook. The guidance increase suggests confidence in sustained demand across commercial aerospace, military, and business aviation markets.

Conclusion

While StandardAero’s revenue growth remains robust, the EPS miss and cautious market reaction highlight investor sensitivity to profitability metrics. The company’s improved debt position and raised guidance signal operational strength, but execution risks—particularly around supply chain pressures—remain a focal point.

For more detailed earnings estimates and historical performance, visit StandardAero’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.