Standardaero, Inc. · NYSE:SARO
Standardaero — Q1 2025 Earnings Presentation
16 slides from Standardaero's earnings presentation, May 12, 2025
Slide 1: First Quarter 2025 Earnings Presentation
FIRST QUARTER 2025 EARNINGS PRESENTATION MAY 12, 2025 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: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE Q1 PERFORMANCE DRIVERS ADJUSTED EBITDA1 Margin (% of Revenue) Strong Top Line Growth $1,436 $198 +16% − Commercial Aerospace: +18% YoY +20% YoY YoY − Business Aviation: +13% YoY − Military & Helicopter: +10% YoY $166 $1,236 Continued Margin Expansion − Favorable engine w
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS MARKET ENVIRONMENT EXECUTING ON 2025 STRATEGIC PRIORITIES Continuing Aftermarket Strength Robust commercial aero demand Steady business jet and military utilization Constrained supply Managing Tariff Impact Capitalize on Expansion of Pursue ◼ USMCA ◼ Contract passthrough LE
Slide 5: First Quarter 2025 Results – Consolidated
FIRST QUARTER 2025 RESULTS – CONSOLIDATED ($ in millions) Q1 2025 Performance Commentary ◼ Growth across all end markets: Commercial Aerospace (+18% YoY), Business Aviation (+13% Revenue $1,436 YoY), and Military & Helicopter (+10% YoY) % Change YoY +16% ◼ Growth in both Engine Services (+16% YoY) a
Slide 6: First Quarter 2025 Results – Engine Services
FIRST QUARTER 2025 RESULTS – ENGINE SERVICES QUARTERLY HIGHLIGHTS $1,268 ◼ +16% YoY Revenue growth +16% YoY + Robust demand in commercial aftermarket + Strong CF34 performance following license $1,097 expansion + Growth on mid/super-mid BizAv engine platforms +16% − Lower workscope on military trans
Slide 7: First Quarter 2025 Results – Component Repair Services
FIRST QUARTER 2025 RESULTS – COMPONENT REPAIR SERVICES QUARTERLY HIGHLIGHTS $167 ◼ +21% YoY Revenue growth +21% YoY + ATI acquisition contribution + Strong Land & Marine growth $138 − Slower timing of inputs from certain commercial customers (expected to recover in 2H 2025) +32% − Facility consolida
Slide 8: Free Cash Flow
FREE CASH FLOW ($ in millions) Q1 2025 COMMENTARY Adjusted EBITDA 1 $198 ◼ Free Cash Flow improved $38 million YoY 1 ◼ Strong earnings performance and lower interest, offset by higher (+/-) Δ in Net Working Capital (128) working capital and CapEx from seasonality and growth investments (-) Capex Exc
Slide 9: Balance Sheet & Liquidity
BALANCE SHEET & LIQUIDITY SIGNIFICANTLY STRENGTHENED NET DEBT TO ADJUSTED EBITDA LEVERAGE RATIO1 BALANCE SHEET ◼ Benefiting refinancing of capital structure 5.7x ◼ Leverage ratio improved to 3.1x ◼ Annual interest savings $130 million+ to be realized in 2025 3.1x Target 2.0-3.0x Q1 2024 Q1 2025 FY 2
Slide 10: FY 2025 Company & Segment Outlook
FY 2025 COMPANY & SEGMENT OUTLOOK ($ in millions) Prior FY 2025 Current FY 2025 Commentary Revenue $5,800 – $5,950 $5,825 – $5,975 ◼ Engine Services: $5,110 – $5,240 (prior $5,085 – $5,215) % Change YoY +11% – +14% +11% – +14% ◼ Component Repair Services: $715 – $735 ◼ Engine Services: ~13% Adj. EBI
Slide 11: Appendix
APPENDIX 11
Slide 12: Reconciliation of Non-GAAP Financial Metrics
RECONCILIATION OF NON-GAAP FINANCIAL METRICS ADJUSTED EBITDA AND ADJUSTMENTS WALK Three Months Ended March 31, 2025 2024 (in millions, except percentages) Net income (loss) $62.9 $3.2 Income tax expense 22.2 16.9 Depreciation and amortization 48.7 47.4 Interest expense 43.8 77.5 (1) Business transfo
Slide 13: Segment Disclosure
SEGMENT DISCLOSURE SEGMENT ADJUSTED EBITDA Three Months Ended March 31, 2025 2024 (in millions, except percentages) Engine Services Segment Revenue $1,268.3 $1,097.4 Segment Adjusted EBITDA $174.0 $150.0 Segment Adjusted EBITDA Margin 13.7% 13.7% Component Repair Services Segment Revenue $167.3 $138
Slide 14: 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, 2024 Component Component Engine Total Engine Total Repair Repair Services Segments Services Segments Services Services (In thousands) (I
Slide 15: 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, 2025 2024 (in millions except percentages) New 2024 Term Loan Facilities $2,244.4 --- New 2024 Revolving Credit Facility 110.0 --- Prior 2024 Term Loan Facilities --- 2,762.1 Prior 2023 Term Loan F
Slide 16: Free Cash Flow Disclosure
FREE CASH FLOW DISCLOSURE RECONCILIATION OF FREE CASH FLOW Three Months Ended March 31, 2025 2024 (in millions) Cash Flow from Operations $(24.0) $(83.6) Purchase of Property, Plant and Equipment (25.3) (18.5) Purchase of Intangible Assets (15.0) -- Proceeds from Disposal of Property, Plant and Equi