StandardAero expands CFM56-7B services with engine exchange program

SCOTTSDALE - StandardAero (NYSE:SARO), a $10.1 billion market cap aerospace services provider with annual revenues exceeding $5.4 billion, has expanded its CFM56-7B services portfolio to include exchange engine solutions for Boeing 737NG operators, according to a company press release. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.0, positioning it well for service expansion initiatives.

The aerospace engine aftermarket services provider now offers customers the option to exchange unserviceable CFM56-7B engines for serviceable powerplants with remaining life. This complements StandardAero’s existing OEM-authorized maintenance, repair and overhaul capabilities for the engine type at facilities in Dallas and Winnipeg. The company’s robust 17% year-over-year revenue growth demonstrates strong market demand for its services.

The company recently completed its first such exchange with India-based Stellar Aviation Solutions, delivering a serviceable CFM56-7B26/3 engine in exchange for a time-expired unit. The transaction, completed in six weeks, enabled Stellar to return a Boeing 737-800 aircraft to cargo service.

"StandardAero is delighted to expand its portfolio of CFM56-7B service offerings to our customers worldwide through the addition of exchange engine solutions," said Guillaume Limouzy, Airline Sales Director for StandardAero’s Airlines & Fleet business unit.

StandardAero has provided CFM56-7B services since 2010 and recently added MRO support from its facility at DFW International Airport in Dallas. The company also offers component repair and overhaul, asset management support, and engine health monitoring data analysis for the CFM56 family.

The CFM56-7B engine powers the Boeing 737NG aircraft series. CFM International, a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines, manufactures the engine. While StandardAero shows promising growth potential, with analysts expecting increased net income this year, InvestingPro analysis suggests the stock may be trading above its Fair Value. Investors can access 10+ additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks including StandardAero.

In other recent news, StandardAero Inc. reported strong financial results for the first quarter of 2025, with revenue reaching $1.4 billion, a 16% increase year-over-year. The company also saw its adjusted EBITDA margin improve by 40 basis points to 13.8%, while net income surged to $63 million from $3 million the previous year. In a separate development, StandardAero announced a secondary offering where affiliates of The Carlyle Group Inc. and GIC plan to sell 30 million shares of common stock. The company will not be offering new shares, and the proceeds will go to the selling stockholders.

Additionally, StandardAero has expanded its LEAP engine lease offerings to support Airbus A320neo and Boeing 737 MAX operators, reducing aircraft downtime during maintenance. UBS analyst Gavin Parsons raised the price target for StandardAero to $30, maintaining a Neutral rating, citing the company’s margin expansion and strategic investments in the LEAP engine. StandardAero’s recent performance and strategic initiatives reflect its ability to navigate market conditions and capitalize on growth opportunities in the aerospace sector.

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