Slide 1: Third Quarter 2024 Earnings Presentation
THIRD QUARTER 2024 EARNINGS PRESENTATION NOVEMBER 13, 2024 1
Slide 2: Disclaimer – Forward Looking Statements & Non-GAAP Disclosure
DISCLAIMER – FORWARD LOOKING STATEMENTS & NON-GAAP DISCLOSURE This presentation contains forward-looking statements that involve substantial risks and uncertainties. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Sect
Slide 3: StandardAero at a Glance
STANDARDAERO AT A GLANCE THE LEADING INDEPENDENT AEROENGINE AFTERMARKET SERVICES PROVIDER World’s Largest Independent Aerospace Leading Capabilities Serving the Aeroengine Aftermarket Attractive Business Mix #1 Engine Aftermarket Service Provider Revenue by Segment2 Engine Repair Component Component
Slide 4: Leading Global Position Across End Markets
LEADING GLOBAL POSITION ACROSS END MARKETS DIVERSIFIED EXPOSURE TO COMMERCIAL, MILITARY & HELICOPTER AND BUSINESS AVIATION END MARKETS ENGINE SERVICES 80%1 COMPONENT 20%1 (13% FY 2024 YTD Adj. EBITDA margin) REPAIR SERVICES COMMERCIAL AEROSPACE MILITARY & HELICOPTERS BUSINESS AVIATION (26% FY 2024 Y
Slide 5: Q3 Business Highlights
Q3 BUSINESS HIGHLIGHTS OPERATIONAL DEVELOPMENTS M&A CAPITAL MARKETS LEAP Program Progress Acquired Aero Turbine in Completed IPO on NYSE August for $141mm on October 2nd Test cell correlation complete ($120mm upfront) Signed first airline agreements and inducted first engines Adds niche engine compo
Slide 6: Third Quarter 2024 Highlights
THIRD QUARTER 2024 HIGHLIGHTS REVENUE Q3 PERFORMANCE DRIVERS ADJUSTED EBITDA1 Margin (% of Revenue) Further Aftermarket Demand Strength +13% +26% $168 YoY $1,245 − Commercial Aerospace: +19% YoY YoY − Business Aviation: +15% YoY $1,099 $134 − Military & Helicopter: (3%) YoY Continued Margin Expansio
Slide 7: Third Quarter 2024 Results – Consolidated
THIRD QUARTER 2024 RESULTS – CONSOLIDATED ($ in millions) Q3 2024 2024 YTD Q3 Performance Commentary Revenue $1,245 $3,828 ◼ Engine Services: +13% YoY in Q3 (+12% YoY Q3 YTD) % Change YoY +13% +12% ◼ Component Repair Services: +15% YoY in Q3 (+12% YoY Q3 YTD) Adjusted EBITDA1 $168 $504 ◼ Engine Serv
Slide 8: Third Quarter 2024 Results – Engine Services
THIRD QUARTER 2024 RESULTS – ENGINE SERVICES SEGMENT REVENUE QUARTERLY HIGHLGIHTS +13% $1,090 ◼ +13% YoY Revenue growth YoY − Commercial Aerospace: +20% YoY $966 − Business Aviation: +15% YoY − Military & Helicopter: (7%) YoY, driven by temporary Q3 2023 Q3 2024 V-22 Osprey grounding SEGMENT ADJUSTE
Slide 9: Third Quarter 2024 Results – Component Repair Services
THIRD QUARTER 2024 RESULTS – COMPONENT REPAIR SERVICES SEGMENT REVENUE QUARTERLY HIGHLGIHTS +15% ◼ +15% YoY Revenue growth (+9% organic) $154 YoY $134 − Commercial Aerospace: +13% YoY − Military & Other: +19% YoY (+3% organic) Q3 2023 Q3 2024 ◼ +128 bps YoY margin expansion driven by revenue SEGMENT
Slide 10: Capital Structure Update
CAPITAL STRUCTURE UPDATE IMPROVED BALANCE SHEET AND CASH FLOW PROFILE FROM IPO AND REFINANCING IPO SUMMARY IMPACT RATING AGENCY UPGRADES POST-IPO ◼ $1.2 billion IPO primary proceeds after fees used to (i) repay 100% of the $475 million 10% Senior Notes and (ii) B3 → Ba3 B → BB- B+ → BB repay $726 mi
Slide 11: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY FOCUSED, DISCIPLINED APPROACH TO DRIVE COMPOUNDING RETURNS THROUGH CAPITAL ALLOCATION ORGANIC INVESTMENT AND NEW ENGINE PLATFORMS ACQUISITIONS DELEVERAGING Disciplined approach to evaluating and Evaluate every growth investment based winning new license opportunities focu
Slide 12: The StandardAero Summary
THE STANDARDAERO SUMMARY 1 Pure Play Focus on the Aerospace Engine Aftermarket 2 Leading Market Position Supported by World-Class Service and Capabilities Recent Platform Wins and Investments Driving Above Path to Leading 3 Market Growth Earnings Compounder Platform to Accelerate Growth from Organic
Slide 13: Appendix
APPENDIX 13
Slide 14: Reconciliation of Non-GAAP Financial Metrics
RECONCILIATION OF NON-GAAP FINANCIAL METRICS Adjusted EBITDA and Adjustments Walk 1 1 2 2 3 4 3 4 Source: Company financials 14
Slide 15: Segment Disclosure
SEGMENT DISCLOSURE Segment Adjusted EBITDA 1 1 2 2 3 4 3 4 Source: Company financials 15
Slide 16: Reconciliation of Segment Disclosure
RECONCILIATION OF SEGMENT DISCLOSURE Reconciliation of Segment Revenue and Segment Adjusted EBITDA to Net Income Source: Company financials 16
Slide 17: Reconciliation of Segment Disclosure (Continued)
RECONCILIATION OF SEGMENT DISCLOSURE (CONTINUED) Reconciliation of Segment Revenue and Segment Adjusted EBITDA to Net Income Source: Company financials 17
Slide 18: Reconciliation of Net Debt and Net Debt to Adjusted EBITDA Leverage Ratio
RECONCILIATION OF NET DEBT AND NET DEBT TO ADJUSTED EBITDA LEVERAGE RATIO Reconciliation of Net Debt and Net Debt to Adjusted EBITDA Leverage Ratio 1 1 2 2 3 4 3 4 _______________ (1) Represents integration costs incurred, including any facility or platform consolidation associated with the integrat