StandardAero posted brisk sales in its first quarter as a public company thanks to strong commercial aerospace demand.
In its first quarter as a public company, Scottsdale, Arizona-based engine MRO provider StandardAero posted brisk sales thanks to strong commercial aerospace demand, especially in the engine segment.
Sales rose 22% year-on-year to $1.41 billion in the fourth quarter of 2024, while earnings before interest, tax, depreciation and amortization (Ebitda) were $186 million. Both revenue and Ebitda beat Wall Street’s expectations.
By market, commercial aerospace saw the strongest growth by far at 33%, while business aviation grew 11% and military and helicopter increased 9%.
Analysts are bullish on the potential for StandardAero’s engine business this year. “The [CFM International] Leap engine volume growth in 2025 should be significant (off a low base) with the CFM56 providing the majority of the 2025 growth,” RBC Capital Markets’ Ken Herbert said in a March 10 client note.
“As we think about the component sales service revenue opportunity, StandardAero noted it is the first repair business to industrialize all known Leap repairs thus far and that it remains a partner to CFM for the introduction of future repairs,” JPMorgan said in a March 10 research note. The investment bank expects the CFM56, one of three major commercial platforms where the company is investing, to be StandardAero’s top growth driver this year. Leap and the GE CF34 are also expected to grow, “though the Leap contribution should remain quite small.”
With regards to its business aviation unit, CEO Russell Ford said in an earnings call that StandardAero is seeing increasing volumes on some of the flagship engine products like the Honeywell HTF7000, where it is the exclusive heavy MRO provider, as well as Pratt & Whitney’s PW300 and 500, which are powering the latest super-midsized types of aircraft. “So overall, across the end markets, we’re seeing very robust maintenance demand,” he said.
In the call, StandardAero’s management flagged U.S. President Donald Trump’s tariffs—including those recently applied to steel and aluminum—as a risk for its business this year, but one that could be managed. CFO Daniel Satterfield said that StandardAero has not historically been materially affected by tariffs given the aerospace industry’s exemptions in free-trade deals. However, the company is monitoring the situation and is well prepared to act to mitigate any impact to its business “as a result of future policy developments.”
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