GIC Private Ltd sells $180 million in StandardAero stock

GIC Private Ltd, along with its affiliates GIC Special Investments Pte Ltd and Hux Investment Pte. Ltd., has disclosed a significant sale of StandardAero, Inc. (NASDAQ:SARO) shares. According to a recent SEC filing, these entities sold a combined total of 6,629,834 shares at a price of $27.16 per share, amounting to approximately $180 million. The sale comes as InvestingPro data shows StandardAero trading at a notably high P/E ratio of 765, with analysis suggesting the stock is currently trading above its Fair Value.

Following this transaction, the reporting owners collectively retain ownership of 40,817,224 shares. The shares are held indirectly, with Hux Investment Pte. Ltd. owning them directly, while GIC Special Investments Pte Ltd and GIC Private Ltd share voting and disposal powers. The Government of Singapore, the ultimate owner, disclaims beneficial ownership of these securities. StandardAero maintains strong liquidity with a current ratio of 1.95, though InvestingPro analysis indicates weak gross profit margins of 14.4%.

GIC Private Ltd and its affiliates are significant stakeholders in StandardAero, a company specializing in aircraft engines and engine parts, with annual revenue of $5.24 billion. This recent transaction reflects the ongoing portfolio management activities of GIC, which was established to manage Singapore’s foreign reserves. For deeper insights into StandardAero’s financial health and growth prospects, including 7 additional key ProTips, explore the comprehensive research available on InvestingPro.

In other recent news, StandardAero Inc. reported financial results for the fourth quarter that exceeded expectations, with revenues reaching $1.41 billion, surpassing the consensus estimate of $1.36 billion. The company’s adjusted EBITDA was $186 million, outperforming both consensus and Bernstein’s estimate of $170 million, with margins at 13.2%. In a separate development, StandardAero announced a secondary offering of 30 million shares by its selling stockholders, affiliates of The Carlyle Group (NASDAQ:CG) Inc. and GIC Private Limited, with the company itself not selling any shares. The offering is contingent on market conditions and customary closing conditions.

Analysts have responded to StandardAero’s recent performance with mixed updates. Bernstein increased its price target for the company’s shares from $30 to $35, maintaining an Outperform rating, citing a strong outlook for 2025. Meanwhile, JPMorgan reiterated an Overweight rating with a steady price target of $34, highlighting the company’s robust demand and consistent profitability despite lower-than-expected cash conversion. UBS raised its price target slightly from $27 to $28, maintaining a Neutral rating, while acknowledging the company’s strategic investments in growth opportunities.

The company’s Engine Services segment reported revenues of $1.25 billion, driven by significant growth in commercial aerospace end markets. The Component Repair Services also showed favorable outcomes, with revenues slightly above forecasts. Analysts noted StandardAero’s strategic focus on expanding its services for CFM56 and CF34 engines, as well as the LEAP engine, which is expected to support long-term growth in the aftermarket segment.

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