StandardAero affiliates to sell 30 million shares

Published 19/05/2025, 21:38
StandardAero affiliates to sell 30 million shares

SCOTTSDALE, Ariz. - StandardAero, Inc. (NYSE: SARO), a $10 billion market cap provider of aerospace engine aftermarket services with annual revenues exceeding $5.4 billion, has announced that two of its stockholders, affiliates of The Carlyle Group Inc. and GIC, plan to sell 30 million shares of common stock in a secondary offering. The company’s stock has shown strong momentum, delivering a 21% return year-to-date. The sale is to be conducted under a shelf registration statement filed with the Securities and Exchange Commission (SEC).

The company has stated that all net proceeds from the offering will go to the selling stockholders, and no new shares are being offered by StandardAero itself. The selling stockholders are also expected to grant underwriters a 30-day option to purchase up to an additional 4.5 million shares. According to InvestingPro data, StandardAero maintains a healthy financial position with a strong current ratio of 2.0 and operates with a moderate level of debt.

The joint lead book-running managers for the offering include J.P. Morgan, Morgan Stanley, RBC Capital Markets, BofA Securities, UBS Investment Bank, and Jefferies, with Carlyle acting as co-manager.

The offering will be made through a prospectus supplement and an accompanying prospectus. Interested parties can obtain these documents from J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. The registration statement has been filed publicly but is not yet effective, and as such, the securities may not be sold nor offers to buy accepted until it becomes effective.

The completion of the offering is subject to market conditions, and there is no assurance as to the timing or size of the offering.

StandardAero serves various aviation markets, including commercial, military, and business aviation, offering services such as engine maintenance, repair and overhaul, and engineering solutions. The company cautions that statements regarding the proposed secondary offering are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially from expectations. InvestingPro analysts expect net income growth this year, with three analysts recently revising their earnings estimates upward. For detailed financial analysis and 12 additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

This news article is based on a press release statement from StandardAero, Inc.

In other recent news, StandardAero Inc. reported a strong financial performance for the first quarter of 2025, with revenue reaching $1.4 billion, a 16% increase year-over-year. The company’s adjusted EBITDA rose by 20% to $198 million, and net income surged to $63 million from $3 million the previous year. Analysts at UBS raised StandardAero’s stock target to $30, maintaining a Neutral rating, citing the company’s margin expansion and double-digit organic growth. StandardAero has also expanded its service offerings for LEAP-1A and LEAP-1B engines, providing lease engines to support Airbus A320neo and Boeing 737 MAX operators worldwide. This expansion is part of the company’s strategy to enhance operational availability and reduce maintenance costs for airlines. Additionally, StandardAero’s San Antonio facility is equipped to handle quick-turn and performance restoration visits for LEAP engines. The company continues to invest in its workforce, training technicians through its Aviation Mechanic Training Program. These developments reflect StandardAero’s ongoing efforts to strengthen its market position and operational efficiency.

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