Bernstein Reiterates Outperform on StandardAero Inc (SARO) Following 'Strong Q4 and a Strong Guide'

Bernstein SocGen Group analyst Douglas Harned reiterated an Outperform rating and $30.00 price target on StandardAero Inc (NYSE: SARO).

The analyst commented: "Strong Q4 and a strong guide - Aftermarket upside continues; StandardAero had a strong Q4. Revenues of $1.41bn were ahead of both consensus estimate at $1.36bn and our $1.37bn. Adjusted EBITDA of $186m was ahead of consensus and our ~$170m; margins were 13.2%, 90bps ahead of our 12.3% estimate. Engine Services reported revenues of $1.25bn, ahead of our estimate at $1.22bn. Commercial aerospace end markets increased 36% y/y and business aviation increased 11% y/y, partially offset by a -1% decrease in military/helicopter end markets due to V-22 groundings. Segment Adj. EBITDA of $160m was ahead of our expectation of $151m. Component Repair Services reported revenues of $164m, slightly ahead of our estimate of $159m. Segment Adj. EBITDA of $44m was above our expectation of $37m.

The positive outlook is consistent with our view that the aftermarket remains strong for midlife aircraft. The CF34-8 was an important revenue source. The biggest source of 2025 growth is expected from the CFM56 expansion, with long-term growth from LEAP."

For an analyst ratings summary and ratings history on StandardAero Inc click here. For more ratings news on StandardAero Inc click here.

Shares of StandardAero Inc closed at $26.30 yesterday.

You May Also Be Interested In

• Bernstein SocGen Group Upgrades Analog Devices (ADI) to Outperform
• Hyperliquid Strategies to webcast fiscal year 2026 results
• Morgan Stanley Upgrades Merck (MRK) to Overweight