StandardAero posts strong Q2 2026 earnings growth
Rhea-AI Filing Summary
StandardAero, Inc. reported solid results for the three months ended June 30, 2026, with revenue of $1,599.7 million, up 4.6% year-over-year, driven by commercial aerospace and business aviation, partially offset by lower military revenue and removal of low-margin pass-through contracts.
Net income rose to $97.3 million (GAAP diluted EPS $0.29), a 43.7% increase, while Adjusted EBITDA grew 12.3% to $229.9 million and margin reached a record 14.4%. Adjusted diluted EPS was $0.40, up 24%. Free cash flow was an inflow of $50.2 million in the quarter, though cash from operations for the first half remained negative.
The Engine Services segment grew revenue 4.0% with Segment Adjusted EBITDA margin improving to 14.5%, while Component Repair Services revenue rose 9.2% but margin declined to 26.3% on mix. The company signed an expanded OEM license agreement, closed the acquisition of Unified Turbines, and continued share repurchases, ending with Net Debt to Adjusted EBITDA of 2.6x. Full-year 2026 guidance was raised for revenue ($6,375–$6,500 million), Adjusted EBITDA ($885–$910 million) and Adjusted diluted EPS ($1.50–$1.57), incorporating the elimination of $300–$400 million of pass-through revenue.
Positive
- Q2 profitability and EPS inflection: Net income grew 43.7% year-over-year to $97.3 million, with GAAP diluted EPS at $0.29 and Adjusted diluted EPS at $0.40, up 24% versus the prior-year quarter.
- Margin expansion and record Adjusted EBITDA margin: Adjusted EBITDA increased 12.3% to $229.9 million, and Adjusted EBITDA margin improved 100 bps to a record 14.4%, supported by productivity gains and removal of low-margin pass-through revenue.
- Upgraded full-year 2026 outlook: Revenue guidance was raised to $6,375–$6,500 million, Adjusted EBITDA to $885–$910 million, and Adjusted diluted EPS to $1.50–$1.57, indicating expectations for continued double-digit earnings growth.
- Improved leverage profile: Net Debt to Adjusted EBITDA declined to 2.6x at June 30, 2026, from 3.0x a year earlier, reflecting higher trailing twelve-month Adjusted EBITDA and supporting balance sheet flexibility.
- Positive free cash flow in the quarter: Free cash flow was an inflow of $50.2 million in Q2 2026, a notable improvement compared with a $30.7 million outflow in the prior-year quarter.
Negative
- None.
Filing Explained
The August 6 release changes adjusted-metric definitions and reports 330,910,687 shares outstanding after common-stock repurchases.
The
The company reports
The company changed Adjusted Free Cash Flow to exclude intangible-asset purchases and broadened Adjusted Diluted EPS to exclude non-cash amortization of all intangible assets, including licenses. Accordingly, the updated full-year guidance and adjusted earnings comparison use definitions that exclude these items.
The share-count change can be tracked against 334,294,245 shares outstanding and 176,019 treasury shares at
The stated watch item is the full-year 2026 adjusted EBITDA, Adjusted Free Cash Flow, and Adjusted Diluted EPS guidance: the release provides no forward-looking GAAP reconciliations because the required components cannot be reliably predicted without unreasonable effort or expense.
8-K Event Classification
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Key Terms
Adjusted EBITDA financial
Free Cash Flow financial
Net Debt to Adjusted EBITDA financial
business transformation costs financial
LEAP 1A/1B engine line technical
Adjusted Diluted EPS financial
Earnings Snapshot
For full-year 2026, StandardAero guides to revenue of $6,375–$6,500 million, Adjusted EBITDA of $885–$910 million, Adjusted Free Cash Flow of $270–$300 million, and Adjusted Diluted EPS of $1.50–$1.57.
FAQ
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