Revenue growth remains resilient at 13.3% year-over-year in 2026Q1, though gross margins remain constrained within a 13.2% to 15.4% range due to high variable costs.
| Sales/Revenue | 6.25B | 6.06B | 5.24B | 4.56B | 4.15B |
| Revenue Growth % | 15.02% | 15.76% | 14.77% | 9.95% | - |
| Cost of Goods Sold | 5.36B | 5.17B | 4.48B | 3.93B | 3.6B |
| COGS % of Revenue | - | 85.2% | 85.6% | 86.08% | 86.85% |
| Gross Profit | 894.76M | 897.45M | 754.16M | 635.28M | 545.68M |
| Gross Margin % | 14.31% | 14.8% | 14.4% | 13.92% | 13.15% |
| Gross Profit Growth % | - | 19% | 18.71% | 16.42% | - |
| Operating Expenses | 324.12M | 346.38M | 350.94M | 297.93M | 283.05M |
| OpEx % of Revenue | - | 5.71% | 6.7% | 6.53% | 6.82% |
| Selling, General & Admin | 255.17M | 247.7M | 207.27M | 202.77M | 188.1M |
| SG&A % of Revenue | - | 4.09% | 3.96% | 4.44% | 4.53% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 2M | 98.68M | 143.67M | 95.16M | 94.94M |
| Operating Income | 570.64M | 551.07M | 403.22M | 337.36M | 262.63M |
| Operating Margin % | 9.12% | 9.09% | 7.7% | 7.39% | 6.33% |
| Operating Income Growth % | - | 36.67% | 19.52% | 28.45% | - |
| EBITDA | 762.09M | 744.73M | 590.3M | 534.46M | 457.86M |
| EBITDA Margin % | 12.19% | 12.28% | 11.27% | 11.71% | 11.03% |
| EBITDA Growth % | 23.91% | 26.16% | 10.45% | 16.73% | - |
| D&A (Non-Cash Add-back) | 191.45M | 193.66M | 187.08M | 197.1M | 195.22M |
| EBIT | 570.64M | 551.07M | 364.26M | 314.76M | 264.98M |
| Net Interest Income | -168.58M | -174.22M | -291.67M | -329.57M | -242.99M |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 168.58M | 174.22M | 291.67M | 327.98M | 242.99M |
| Other Income/Expense | -173.98M | -174.22M | -321.46M | -332.24M | -240.64M |
| Pretax Income | 396.67M | 376.85M | 81.76M | 5.12M | 22M |
| Pretax Margin % | 6.34% | 6.22% | 1.56% | 0.11% | 0.53% |
| Income Tax | 102.26M | 99.44M | 70.78M | 40.18M | 43M |
| Effective Tax Rate % | 25.78% | 26.39% | 86.58% | 784.92% | 195.47% |
| Net Income | 294.4M | 277.42M | 10.97M | -35.06M | -21M |
| Net Margin % | 4.71% | 4.58% | 0.21% | -0.77% | -0.51% |
| Net Income Growth % | 316.26% | 2427.95% | 131.3% | -66.96% | - |
| Net Income (Continuing) | 294.4M | 277.42M | 10.97M | -35.06M | -21M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.88 | 0.83 | 0.04 | -0.10 | -0.06 |
| EPS Growth % | 314.51% | 2089.97% | 137.9% | -59.24% | - |
| EPS (Basic) | - | 0.84 | 0.04 | -0.10 | -0.06 |
| Diluted Shares Outstanding | 333.36M | 334.4M | 289.8M | 334.46M | 334.46M |
| Basic Shares Outstanding | 327.26M | 328.45M | 288.42M | 334.46M | 334.46M |
| Dividend Payout Ratio | - | - | - | - | - |
OEM authorization dependency risk
As reported in recent financial statements, StandardAero achieved a 13.3% year-over-year revenue increase in 2026Q1, signaling that the company is successfully capturing elevated demand for engine maintenance services driven by the aging global narrowbody fleet and extended aircraft utilization cycles across the commercial aviation sector.
The consistent double-digit top-line growth suggests that the company's service-heavy model is benefiting from structural tailwinds in the aftermarket. Investors should monitor whether this trajectory remains durable as the industry eventually transitions toward newer engine platforms that may have different maintenance requirements.
Based on the provided income statement data, StandardAero maintains a gross margin profile of approximately 13.2% to 15.4%, which appears to reflect the high-cost nature of parts procurement and the labor-intensive requirements inherent in authorized engine overhaul services within the competitive aerospace aftermarket landscape.
The narrow margin band suggests limited pricing power relative to high-margin peers like HEICO or TransDigm, likely due to the pass-through nature of OEM parts. Any significant margin expansion would likely require a strategic shift toward higher-margin component repair services rather than full engine overhauls.
According to the latest quarterly figures, operating income reached $148.5 million in 2026Q1, demonstrating that the company is beginning to achieve better overhead absorption as revenue scales, despite the persistent pressure from variable costs associated with specialized aerospace maintenance and technical labor requirements.
The improvement in operating margins from 6.7% in 2024Q4 to 9.1% in 2026Q1 indicates that management is successfully managing SG&A expenses relative to top-line growth. This trend warrants further investigation to determine if this efficiency is sustainable or merely a result of temporary volume-driven absorption.
Based on reported figures, the emergence of stock-based compensation expenses, which reached $4.1 million in 2025Q3, suggests that the company's transition to a public entity is introducing new non-cash charges that investors should account for when evaluating the underlying profitability and true earnings per share.
The volatility in net income, including the loss reported in 2024Q4, highlights the sensitivity of the bottom line to non-operating items and potential accounting adjustments. Analysts should focus on normalized earnings to strip out these periodic fluctuations and better assess the core operational performance of the business.
Quick answers to the most common questions about buying SARO stock.
For fiscal year 2025, StandardAero, Inc. (SARO) reported total revenue of $6.06B. This represents a 46.1% increase compared to $4.15B in 2022.
StandardAero, Inc. (SARO) is profitable, generating $277.4M in net income for the fiscal year ending 2025 with a net profit margin of 4.6%.
StandardAero, Inc. (SARO) reported an operating income of $551.1M, resulting in an operating profit margin of 9.1%. This margin reflects the operational efficiency of the business before interest and taxes.
StandardAero, Inc. (SARO) generated $897.5M in gross profit for the year, representing a gross profit margin of 14.8%. This demonstrates the company's core pricing power and production efficiency.