SARO NYSE Russell 1000 Earnings call
StandardAero (SARO) · Q2 2026 results and valuation
Share price: $28.74 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 8 May 2026
Net income up 21.7% on the previous quarter, guidance raised. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+21.7%
Net income vs Q1 2026
Guidance raised
Net income 97.3M vs 79.9M
Revenue −1.7%
Against the same quarter last year (Q2 2025) it is +43.7%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 73% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Margin reached a record 14.4%, adjusted EBITDA grew 12.3% to $230 million, and free cash flow was $50 million.
Valuation
Is StandardAero undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 13.5% growth a year (3-year revenue growth), the model's fair value is $14.59 a share — the stock trades 97% above it. Today's price assumes 20.3% growth a year.
Current price
$28.74
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+20.3% for 10 yrs
Fair value / share
$14.59
Buy below
$10.95
Price vs fair value
Overvalued 97%
Price vs buy-below price
Overvalued 163%
Read between the lines
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Key theme
Ticket prices and jet fuel pass-through have not yet affected flight loading.
Source quote
“So ticket prices and fuel price jet fuel price pass-through have not really started to impact flight loading.”
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Guidance ↑
SARO raised its 2026 guidance for revenue, adjusted EBITDA, and adjusted EPS following results from Q2 2026.
Source quote
“As a result, we are raising our 2026 guidance for revenue, adjusted EBITDA and adjusted EPS.”
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Guidance ↑
Guidance raised to $1.50 to $1.57 and now excludes tax adjusted amortization of all intangible assets.
Source quote
“We are also raising our adjusted EPS guidance to a range of $1.50 to $1.57, which now excludes the tax adjusted amortization of all intangible assets and improves...”
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Figure
The company expects LEAP to reach $1 billion in annual revenue by the end of the decade.
Source quote
“We continue to expect LEAP to reach $1 billion in annual revenue by the end of the decade and several...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We generated double-digit adjusted EBITDA growth, achieved record margins, delivered positive free cash flow and reached profitability on 2 of our most important growth programs.”
“Adjusted EBITDA increased to $230 million, up 12.3% year-over-year, and adjusted EBITDA margin expanded to a record 14.4%, an increase of 100 basis points compared to the prior year period.”
“StandardAero delivered a strong second quarter marked by double-digit earnings growth, record margins, significant progress on our strategic priority and continued strength in customer demand.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.60B | 1.63B | −1.7% | 1.53B | +4.6% |
| Gross profit | 268.8M | 239.4M | +12.3% | 236.2M | +13.8% |
| Operating income | 168.5M | 143.1M | +17.7% | 135.6M | +24.3% |
| Net income | 97.3M | 79.9M | +21.7% | 67.7M | +43.7% |
| EPS | 0.29 | 0.24 | +20.8% | 0.20 | +45.0% |
| P/E today 21.7 | 30.8 | 29.4 | +1.4 | 79.1 | −48.3 |
Topics
Most discussed now
- As Russ has said consistently, supply chain issues in the aerospace industry are not new.
- New There are some costs associated with spinning those other sites up in terms of hiring and training people and getting...
- Excluding the impact of the elimination of pass-through revenue, commercial aerospace growth would have been mid-teens year-over-year…
- Engine Services revenue increased 4.0% year-over-year to $1.405 billion, with growth across StandardAero's 3 major end markets.
- Adjusted EPS was $0.40, up 24% year-over-year, reflecting higher earnings and a lower share count from StandardAero's share repurchase…
Faded since Q1 2026
- Dropped Consequently, if there was some adjustment, the load factors will support that without any real big impacts to equipment changes...
- Fading StandardAero's priorities remain clear and consistent: execute on the LEAP and CFM56 DFW ramp; fully leverage its CF34 investments…
- Fading Historically, the air traffic demand that's underlying what StandardAero is seeing right now is still very strong.
- Fading You couple that with the investment that StandardAero made a year ago in its Augusta, Georgia facility, which is where...
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Results of operations · SEC 8-K