Cash flow generation remains erratic, highlighted by a $249.0 million working capital outflow in 2026Q1 that caused free cash flow margins to drop to -8.3%.
| Cash from Operations | 221.14M | 316.7M | 76.33M | 67.89M | 27.26M |
| Operating CF Margin % | - | 5.22% | 1.46% | 1.49% | 0.66% |
| Operating CF Growth % | -89.17% | 314.92% | 12.43% | 149.05% | - |
| Net Income | 294.4M | 277.42M | 10.97M | -35.06M | -21M |
| Depreciation & Amortization | 190.32M | 203.52M | 187.08M | 197.1M | 195.22M |
| Stock-Based Compensation | 11.19M | 13.24M | 17.38M | 0 | 0 |
| Deferred Taxes | -12.29M | -15.79M | -22.51M | -19.85M | -26.52M |
| Other Non-Cash Items | 14.99M | 818K | 27.47M | 25.01M | 23.52M |
| Working Capital Changes | -277.47M | -162.5M | -144.06M | -99.31M | -143.96M |
| Change in Receivables | -422.44M | -230.22M | -150.64M | -111.39M | -181.69M |
| Change in Inventory | 113.21M | 19.33M | -138.01M | -91.25M | -53.05M |
| Change in Payables | -85.1M | 41.38M | 104.38M | -25.74M | 95.06M |
| Cash from Investing | -80.52M | -106.4M | -235.45M | -112.86M | -60.75M |
| Capital Expenditures | -72.66M | -82.41M | -102.94M | -55.13M | -41.24M |
| CapEx % of Revenue | 1.16% | 1.36% | 1.97% | 1.21% | 0.99% |
| Acquisitions | 1.44M | 0 | -114.07M | -31.05M | -19.91M |
| Investments | - | - | - | - | - |
| Other Investing | -9.29M | -23.99M | -18.44M | -26.67M | 394K |
| Cash from Financing | -194.17M | -25.51M | 203.76M | -14.69M | -25.78M |
| Debt Issued (Net) | -194.27M | -25.51M | -988.51M | -8.8M | -24.31M |
| Equity Issued (Net) | 0 | 0 | 1.2B | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 99K | 0 | -10.54M | -5.89M | -1.47M |
| Net Change in Cash | -51.65M | 187.14M | 44.6M | -62.08M | -63.12M |
| Free Cash Flow | 133.07M | 234.3M | -46.85M | -17.42M | -16.95M |
| FCF Margin % | 2.13% | 3.86% | -0.89% | -0.38% | -0.41% |
| FCF Growth % | 1565.08% | 600.05% | -169.03% | -2.73% | - |
| FCF per Share | 0.40 | 0.70 | -0.16 | -0.05 | -0.05 |
| FCF Conversion (FCF/Net Income) | 0.45x | 1.14x | 6.96x | -1.94x | -1.30x |
| Interest Paid | 0 | 166.78M | 291.15M | 297.33M | 228.26M |
| Taxes Paid | 0 | 102.47M | 101.65M | 99.51M | 40.53M |
Working capital volatility
As reported in recent financial statements, StandardAero exhibits significant volatility in cash conversion, with the OCF/NI ratio swinging from -1.50 in 2026Q1 to 4.11 in 2025Q4, indicating that reported net income is frequently decoupled from the actual cash generated by core engine maintenance operations.
The extreme variance in the OCF/NI ratio suggests that accounting accruals and timing differences in long-term service contracts heavily influence reported earnings. Investors should interpret these fluctuations as a sign that quarterly net income may not be a reliable proxy for the company's immediate liquidity generation capabilities.
Based on the provided quarterly data, StandardAero's free cash flow trajectory remains highly erratic, with FCF margins oscillating between -8.3% and 19.2% over the last ten quarters, reflecting the inherent difficulty in timing cash inflows against the lumpy nature of major engine overhaul project cycles.
The inability to maintain positive FCF consistently suggests that the business model requires substantial upfront investment in parts and labor before milestone payments are realized. This pattern warrants further investigation into whether the company's working capital management can stabilize as the business scales its public operations.
According to the company's cash flow statements, working capital changes are the primary driver of cash flow instability, highlighted by a massive $249.0 million outflow in 2026Q1, which directly offset the company's reported net income and pressured the overall cash position during that period.
These large swings suggest that inventory build-ups or delays in customer collections are creating significant drag on operating cash flow. The reliance on managing complex supply chains for engine components appears to be a structural risk that periodically consumes the cash generated by the service business.
As indicated by the financial data, StandardAero maintains a disciplined approach to capital expenditure, with CapEx/Revenue ratios consistently hovering between 1.0% and 3.7%, suggesting that the company is not currently engaged in an aggressive, capital-heavy expansion of its physical engine overhaul facility footprint.
The relatively low capital intensity implies that the business model is more dependent on human capital and OEM licensing than on massive physical infrastructure investment. This provides some comfort that the company can maintain its service capacity without requiring excessive, recurring capital outlays that would further strain FCF.
Quick answers to the most common questions about buying SARO stock.
StandardAero, Inc. (SARO) generated $316.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
StandardAero, Inc. (SARO) generated $234.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
StandardAero, Inc. (SARO) spent $82.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.