Key Highlights

● Second-quarter revenue rose 4.6 per cent year over year to $1,599.7 million.

● Net income rose 43.7 per cent to $97.3 million, or $0.29 per diluted share.

● Net debt fell to 2.6 times adjusted EBITDA, down from 3.0 times a year earlier.

● Full-year revenue guidance was raised to $6,375 million to $6,500 million.

StandardAero, Inc. (NYSE:SARO). The company reported second-quarter 2026 results on 6 August 2026. Revenue for the three months ended 30 June was $1,599.7 million, up 4.6% from $1,528.9 million. Engine Services revenue rose 4.0% to $1,405.1 million and Component Repair Services revenue rose 9.2% to $194.6 million. Engine Services remains by far the larger segment, contributing roughly seven-eighths of quarterly revenue on the reported figures. Net income was $97.3 million, up 43.7% from $67.7 million, equal to $0.29 per diluted share. Adjusted EBITDA increased 12.3% to $229.9 million, a margin of 14.4%, which was 100 basis points higher. Adjusted diluted earnings per share were $0.40, compared with $0.32. The company noted that it changed its definitions of adjusted earnings per share and adjusted free cash flow in the quarter, so comparisons with earlier periods call for caution.

Segments, Cash and Leverage

Engine Services produced segment adjusted EBITDA of $204.2 million, a 14.5% margin. Component Repair Services produced $51.2 million at a margin of 26.3%, which was 270 basis points lower than a year before. The high-margin component business is smaller, but its margin movement is a detail worth tracking. Operating cash flow was $72.3 million and free cash flow was $50.2 million. Net debt was 2.6 times last-twelve-month adjusted EBITDA, down from 3.0 times a year earlier. Chief executive Russell Ford called the quarter strong, citing continued operational momentum and robust commercial aerospace demand. The company also reported a new OEM licence agreement and the completion of its Unified Turbines acquisition.

Raised Guidance for 2026

Management raised its full-year outlook for revenue, adjusted EBITDA and adjusted earnings per share. It now expects revenue of $6,375 million to $6,500 million, adjusted EBITDA of $885 million to $910 million, adjusted free cash flow of $270 million to $300 million and adjusted diluted earnings per share of $1.50 to $1.57. Segment revenue guidance is $5,600 million to $5,700 million for Engine Services and $775 million to $800 million for Component Repair Services. The revenue range includes the elimination of $300 million to $400 million of material pass-through revenue, which affects how reported sales should be read. Underlying end-market growth assumptions are low-double-digit to mid-teens for commercial aerospace, low-double-digit for military and helicopter, and high-single-digit to low-double-digit for business aviation. All of these are forecasts.

A Definition Change Complicates Year-on-Year Comparisons

StandardAero's Engine Services segment, nearly seven-eighths of quarterly revenue, drove the growth, while the smaller, higher-margin Component Repair Services business saw its margin dip 270 basis points even as sales grew faster. The company changed its definitions of adjusted earnings per share and adjusted free cash flow in the quarter, so the raised full-year guidance, which also strips out $300-400 million of material pass-through revenue, calls for care when comparing against figures from earlier periods or against peers that report fewer adjustments.