StandardAero expands LEAP engine lease offerings

SCOTTSDALE, Ariz. - StandardAero (NYSE: SARO), a prominent provider of aerospace engine services with annual revenue of $5.4 billion and strong year-to-date stock performance of 21%, has broadened its service range for CFM International LEAP-1A and LEAP-1B engines, now offering lease engines to aid Airbus A320neo and Boeing 737 MAX operators globally. This new service is designed to support airlines by providing alternative engines during maintenance periods, effectively reducing aircraft downtime and optimizing asset use. According to InvestingPro data, the company’s robust 17% revenue growth reflects its expanding market presence.

The company’s San Antonio facility, spanning 810,000 sq. ft., is equipped to handle both quick-turn and performance restoration shop visits for LEAP engines. With a healthy current ratio of 2.0 and moderate debt levels, StandardAero maintains strong operational capabilities. The company is recognized as a CFM LEAP Premier MRO provider and was the first to sign a non-airline CFM Branded Service Agreement in the Americas for LEAP-1A and LEAP-1B engines in March 2023.

Will Pitcher, Senior Vice President – Sales, Marketing and Customers at StandardAero, highlighted the partnership with leading engine leasing companies to enhance the company’s Total Engine Asset Management services. Pitcher emphasized the benefit to customers, stating that the availability of lease engines during maintenance events helps maintain operational availability and reduce overall maintenance costs.

The company serves a diverse clientele, including airline operators and asset managers across multiple regions, offering comprehensive engine and component repair services. StandardAero’s Component Repair Services segment continues to develop new repair techniques for LEAP engines, having industrialized over 300 component repairs to date.

Additionally, StandardAero invests in growing its workforce, training LEAP technicians through its in-house Aviation Mechanic Training Program at the San Antonio Training Academy.

CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines, is a leading supplier of commercial aircraft engines, including the LEAP family, servicing over 600 operators worldwide.

StandardAero will participate in CFM International’s Leasing Conference in Budapest, Hungary on May 20th, 2025. The company, listed on the NYSE under the ticker SARO with a market capitalization of $10 billion, continues to deliver a broad spectrum of aftermarket solutions for various aviation markets. This expansion into engine leasing represents a strategic move to further support the aviation industry’s operational needs. InvestingPro analysis reveals multiple positive indicators, including expected net income growth and strong analyst support, with detailed insights available in the comprehensive Pro Research Report. The information for this article is based on a press release statement and financial data from InvestingPro.

In other recent news, StandardAero Inc. reported impressive financial results for the first quarter of 2025, with revenue reaching $1.4 billion, a 16% increase compared to the previous year. The company’s adjusted EBITDA grew by 20% to $198 million, and net income surged to $63 million from $3 million in the prior year. Analysts from UBS have raised the price target for StandardAero to $30, maintaining a Neutral rating, citing the company’s strong operational execution and strategic investments, such as those in the LEAP engine platform. Despite this positive performance, the analyst noted that significant cash investment is required for the company’s growth trajectory, which could impact margins.

StandardAero’s earnings per share of $0.19 aligned with market expectations, and the company’s revenue met forecasts, reflecting its robust market positioning. The company anticipates continued growth in 2025, projecting revenue between $5.825 billion and $5.975 billion, with adjusted EBITDA expected to be between $775 million and $795 million. CEO Russell Ford highlighted the strong demand for the LEAP program, with a backlog exceeding $1 billion. The company also continues to explore M&A opportunities to further its strategic goals. These developments underscore StandardAero’s ongoing efforts to capitalize on its market opportunities and enhance its operational capabilities.

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