StandardAero Raises 2026 Guidance After Q3 Profit Rise, Announces $350 Million Accelerated Share Repurchase

StandardAero raised its full-year 2026 revenue and earnings guidance after third-quarter revenue rose 4% year over year to $1.56 billion and net income increased 36% to $93 million. Adjusted earnings per share climbed 30% to $0.39, adjusted EBITDA rose 15% to $225 million, and adjusted EBITDA margin expanded 130 basis points to 14.4%. CEO Paul McElhinney, who took the role in October, said his focus would be executing the existing strategy, improving productivity and converting investments into earnings.

Full-year revenue guidance now stands at $6.525 billion to $6.645 billion, up $148 million at the midpoint and implying 8.6% growth from 2025, versus roughly 6% previously. Adjusted EBITDA guidance rose to $905 million to $920 million, implying 13% growth at the midpoint (previously 11%), and adjusted EPS is expected at $1.57 to $1.62, about 26% growth (previously 23%). The adjusted free cash flow forecast of $270 million to $300 million was maintained. The board increased the repurchase authorization to $1.01 billion and the company announced a $350 million accelerated share repurchase; it had bought back $160 million of shares year to date, including $50 million in the third quarter, and expects $500 million to remain under the authorization afterward. Net debt to adjusted EBITDA ended the quarter at 2.66 times, down from 2.9 times a year earlier, and is expected to finish the year below 2.7 times after the repurchases.

Engine services revenue rose 3.5%, while segment adjusted EBITDA climbed 24% to $205 million and margin rose 250 basis points to 15%. CFO Dan Satterfield credited productivity gains, progress on the LEAP and CFM56 programs at Dallas-Fort Worth, greater use of used serviceable material, and the elimination of low- or no-margin pass-through material revenue from restructured customer contracts. McElhinney called LEAP a central growth priority and reiterated the goal of exceeding $1 billion in annual LEAP revenue by the end of the decade; StandardAero is quoting LEAP shop-visit slots into the mid-2030s. Executives said they had not seen a meaningful change in commercial demand or bookings, with much of 2027 revenue already spoken for.

Component repair services revenue rose 7.3% to $189 million, with segment adjusted EBITDA of approximately $49 million, a 25.8% margin. Satterfield said unfavorable mix, delays in military program inputs and residual costs from ramping labor capacity weighed on the segment, linking reduced military repair inputs to changes in spending associated with the Middle Eastern conflict. Adjusted free cash flow improved to approximately $100 million in the third quarter from $50 million.