Standardaero, Inc. · NYSE:SARO
Standardaero — Q1 2026 Earnings Presentation
18 slides from Standardaero's earnings presentation, May 7, 2026
Slide 1: First Quarter 2026 Earnings Presentation
FIRST QUARTER 2026 EARNINGS PRESENTATION MAY 7TH , 2026 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: Q1 2026 Financial Highlights
Q1 2026 FINANCIAL HIGHLIGHTS REVENUE Q1 PERFORMANCE DRIVERS ADJUSTED EBITDA1 Margin (% of Revenue) $1,627 Double-digit growth across end markets +13.3% YoY + Commercial Aerospace: +11% YoY $203 +2.5% $1,436 + Business Aviation: +20% YoY YoY $198 + Military & Helicopter: +10% YoY Steady earnings grow
Slide 4: Operating Environment Update
OPERATING ENVIRONMENT UPDATE STRUCTURALLY TIGHT MRO MARKET AND DIVERSIFIED PORTFOLIO POSITION SARO TO NAVIGATE MACRO UNCERTAINTY What We Are Seeing Macro Factors Being Monitored ◼ Continued demand strength ◼ Iran conflict driving elevated jet fuel prices ◼ No change in customer behavior or rheto
Slide 5: 2026 Strategic Priorities and Outlook
2026 STRATEGIC PRIORITIES AND OUTLOOK WELL-DEFINED STRATEGIC PATH TO DOUBLE-DIGIT ADJUSTED EBITDA AND EPS GROWTH RAISING 2026 GUIDANCE STRATEGIC PRIORITIES Continuous $6.325 – $6.450Bn LEAP CFM56 & CF34 Component Repair Improvement Revenue $875 – $905M Adjusted EBITDA1 CFM56 DFW $1.40 – $1.50 On tra
Slide 6: Q1 2026 Results – Consolidated
Q1 2026 RESULTS – CONSOLIDATED ($ in millions) Q1 2026 Performance Commentary ◼ Engine Services growth of +14% YoY; Component Repair growth of +7% YoY Revenue $1,627 ◼ Double-digit growth across all end markets: Commercial Aerospace (+11% YoY), Business % Change YoY +13.3% Aviation (+20% YoY), and M
Slide 7: First Quarter 2026 Results – Engine Services
FIRST QUARTER 2026 RESULTS – ENGINE SERVICES REVENUE QUARTERLY HIGHLIGHTS ADJUSTED EBITDA1 Margin (% of Revenue) +14% YoY Revenue growth $1,447 + Ramp of growth platforms (LEAP, CFM56, CF34) +14.1% + LEAP revenue up 4x vs Q1 2025 +2.7% $179 YoY + Continued strong turboprop demand YoY $1,268 + Busine
Slide 8: First Quarter 2026 Results – Component Repair Services
FIRST QUARTER 2026 RESULTS – COMPONENT REPAIR SERVICES REVENUE QUARTERLY HIGHLIGHTS ADJUSTED EBITDA1 Margin (% of Revenue) +7% YoY Revenue growth $180 + Strong growth in CFM56 inductions $52 +7.4% + New awards on GTF YoY +10.6% $167 + Improved material availability YoY - Impact of U.S. Government Sh
Slide 9: Free Cash Flow
FREE CASH FLOW COMMENTARY ($ in millions) Q1 2026 ◼ Q1 Free Cash Flow reflected typical first-quarter seasonality and working capital investment to support continued growth Adjusted EBITDA 1 $203 ◼ Working capital also impacted by ramp growth programs and higher (+/-) Δ in Net Working Capital 1 (247
Slide 10: Balance Sheet & Liquidity
BALANCE SHEET & LIQUIDITY NET DEBT TO ADJUSTED EBITDA LEVERAGE RATIO1 STRONG BALANCE SHEET WITH CAPITAL DEPLOYMENT FLEXIBILITY 3.1x ◼ Net Leverage of 2.6x, down from 3.1x in Q1 2025 + Adjusted EBITDA growth − Seasonal working capital increase − Working capital increase in growth platforms to support
Slide 11: FY 2026 Company & Segment Outlook
FY 2026 COMPANY & SEGMENT OUTLOOK ($ in millions) FY 2026 Commentary ◼ Engine Services: $5,550 – $5,650 Revenue $6,325 – $6,450 ◼ Includes $300 – $400 low margin passthrough revenue eliminated (Q2 to Q4 impact) % Change YoY +4% to +6% ◼ Component Repair Services: $775 – $800 ◼ Engine Services: $760
Slide 12: Appendix
APPENDIX 12
Slide 13: Reconciliation of Non-GAAP Financial Metrics
RECONCILIATION OF NON-GAAP FINANCIAL METRICS ADJUSTED EBITDA AND ADJUSTMENTS WALK Three Months Ended March 31, 2026 2025 (in millions, except percentages) Net income $79.9 $62.9 Income tax expense 25.0 22.2 Depreciation and amortization 46.5 48.7 Interest expense 38.2 43.8 (1) Business transformatio
Slide 14: Reconciliation of Non-GAAP Financial Metrics
RECONCILIATION OF NON-GAAP FINANCIAL METRICS ADJUSTED EPS AND ADJUSTMENTS WALK Three Months Ended Three Months Ended March 31, 2026 March 31, 2025 $M EPS $M EPS (in millions, except per share (in millions, except per share data) data) Net income/Diluted EPS $79.9 $0.24 Net income/Diluted EPS $62.9 $
Slide 15: Segment Disclosure
SEGMENT DISCLOSURE SEGMENT ADJUSTED EBITDA Three Months Ended March 31, 2026 2025 (in millions, except percentages) Engine Services Segment Revenue $1,477.1 $1,268.3 Segment Adjusted EBITDA $178.6 $174.0 Segment Adjusted EBITDA Margin 12.3% 13.7% Component Repair Services Segment Revenue $179.7 $167
Slide 16: Segment Disclosure (Continued)
SEGMENT DISCLOSURE (CONTINUED) SEGMENT REVENUE AND SEGMENT ADJUSTED EBITDA TO PROFIT BEFORE TAX WALK Three Months Ended March 31, 2025 Three Months Ended March 31, 2026 Component Component Engine Total Engine Total Repair Repair Services Segments Services Segments Services Services (In thousands) (I
Slide 17: Reconciliation of Net Debt and Net Debt to Adjusted EBITDA Leverage Ratio
RECONCILIATION OF NET DEBT AND NET DEBT TO ADJUSTED EBITDA LEVERAGE RATIO Three Months Ended March 31, 2026 2025 (in millions, except percentages) 2024 Term Loan Facilities $2,221.9 $2,244.4 2024 Revolving Credit Facility - 110.0 Finance leases 18.1 18.3 Other 1.0 1.1 Total Funded Debt $2,241.0 $2,3
Slide 18: Free Cash Flow Disclosure
FREE CASH FLOW DISCLOSURE RECONCILIATION OF FREE CASH FLOW Three Months Ended March 31, 2026 2025 (in millions, except percentages) Cash Flow from Operations $(119.6) $(24.0) Purchase of Property, Plant and Equipment (15.6) (25.3) Purchase of Intangible Assets - (15.0) Proceeds from Disposal of Prop