StandardAero Ups Guidance on Earnings
StandardAero(NYSE:SARO) released results for the fiscal second quarter ended June 30, 2025, on August 13, 2025, revealing revenue grew 13.5% year-over-year to $1.53 billion, and adjusted EBITDA (non-GAAP) rose 20% to $205 million, driving an 80 basis point margin expansion to a 13.4% adjusted EBITDA margin (non-GAAP). Management raised full-year 2025 guidance, now expecting $5.875 billion to $6.025 billion in revenue and $790 million to $810 million in adjusted EBITDA (non-GAAP), citing robust end-market demand, productivity initiatives, and ongoing ramp in strategic engine programs. The following analysis highlights critical developments in demand visibility, segment margin differentiation, and execution on growth investments.
Bookings for LEAP engine maintenance, repair, and overhaul (MRO) services increased from approximately $1 billion at the end of last year to $1.5 billion as of the latest update, reflecting strengthening pipeline and win rates. The LEAP platform is projected to reach $1 billion in annual revenue by 2030, underpinned by high airline demand and long-term maintenance contracts, as airlines seek to secure capacity in a constrained global MRO environment.
Escalating LEAP contract bookings, now exceeding $1.5 billion, signal sustained multi-year revenue visibility, bolstering StandardAero’s long-term earnings resilience.
Source Fool.com
