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SCOTTSDALE, Ariz. - StandardAero (NYSE:SARO) shares jumped 7.5% after the aerospace engine aftermarket services provider reported fourth-quarter results and issued strong guidance for 2025, signaling continued momentum in its business.
The company posted a fourth-quarter net loss of $14.1 million, or $0.04 per share, on revenue of $1.41 billion, up 21.8% YoY. While StandardAero reported a loss, investors focused on the company’s robust revenue growth and outlook.
For 2025, StandardAero forecasts revenue between $5.8 billion and $5.95 billion, compared to analyst estimates of $5.83 billion. The midpoint of guidance represents about 12% growth from 2024 revenue of $5.24 billion.
"We are seeing strong demand and continued double-digit growth in both our Engine Services and Component Repair Services segments," said Russell Ford (NYSE:F), StandardAero’s Chairman and CEO. He noted the company is benefiting from "enduring secular tailwinds" in the aerospace aftermarket.
Fourth-quarter adjusted EBITDA rose 37.2% to $186.2 million, with margin expanding 150 basis points to 13.2%. Commercial aerospace revenue surged 33% in Q4, while business aviation grew 11%.
StandardAero completed a $1.7 billion IPO in October, using proceeds to pay down debt. The company said its new capital structure is expected to result in over $130 million in annual interest savings compared to pre-IPO levels.
With its improved balance sheet, StandardAero plans to pursue organic growth investments and potential acquisitions to drive further expansion in 2025 and beyond.
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