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Investing.com -- StandardAero Inc (NYSE:SARO) reported second-quarter earnings that missed analyst expectations on Thursday, despite posting revenue growth that slightly exceeded estimates. The aircraft engine maintenance provider’s shares fell 0.6% following the results.
The company reported adjusted earnings per share of $0.20 for the second quarter of 2025, missing analyst estimates of $0.21. Revenue came in at $1.53 billion, slightly above the consensus estimate of $1.5 billion and representing a 13.5% increase YoY from $1.35 billion in the same period last year.
StandardAero’s net income rose significantly to $67.7 million, compared to $5.4 million in the year-ago period, resulting in a net income margin of 4.4%, up from 0.4%. Adjusted EBITDA increased 20.1% YoY to $204.6 million, with margins expanding by 80 basis points to 13.4%.
"Our strong execution in the second quarter drove continued operational excellence, resulting in solid double-digit revenue growth and further net income margin and adjusted EBITDA margin improvement," said Russell Ford, StandardAero’s Chairman and CEO.
The company’s Engine Services segment saw revenue increase 11.5% to $1.35 billion, while Component Repair Services revenue jumped 31.3% to $178.3 million, partly due to the acquisition of Aero Turbine, Inc.
StandardAero raised its full-year 2025 revenue guidance to $5.875-6.025 billion from its previous forecast of $5.825-5.975 billion, in line with the consensus estimate of $5.94 billion. The company also increased its adjusted EBITDA guidance to $790-810 million from $775-795 million previously.
The company continues to expand its LEAP engine program, with bookings now exceeding $1.5 billion after multiple new agreements were signed during the quarter.
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