In This Article:
-
Revenue: $1.4 billion in Q4 2024, 22% growth year-over-year; full-year 2024 revenue growth of 15% to $4.6 billion.
-
Adjusted EBITDA: $186.2 million in Q4 2024, 37% growth year-over-year; full-year 2024 adjusted EBITDA of $691 million, 23% growth.
-
Net Income: Net loss of $14.1 million in Q4 2024; full-year net income of $11 million, impacted by nonrecurring costs.
-
Free Cash Flow: $57.1 million in Q4 2024; negative $45 million for full-year 2024, affected by one-time expenses.
-
Adjusted EBITDA Margin: Expanded by 90 basis points year-over-year.
-
Commercial Aerospace Market Growth: 25% growth in 2024, 33% growth in Q4.
-
Engine Services Revenue: $4.6 billion in 2024, 15% growth year-over-year.
-
Component Repair Services Revenue: $592 million in 2024, 15% growth year-over-year.
-
2025 Revenue Guidance: Projected between $5.8 billion and $5.95 billion.
-
2025 Adjusted EBITDA Guidance: Between $770 million and $790 million.
-
Interest Savings: Over $130 million annually due to debt refinancing.
Release Date: March 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
StandardAero Inc (NYSE:SARO) achieved a record year in 2024 with a 23% increase in adjusted EBITDA and a 37% growth in Q4.
-
The company successfully industrialized over 260 LEAP component repairs, positioning itself as a key player in the LEAP engine MRO business.
-
StandardAero Inc (NYSE:SARO) signed agreements with nine customers for LEAP services, representing future revenue of over $1 billion.
-
The company completed its IPO in early October, reducing leverage and improving its credit ratings, resulting in over $130 million of annual interest savings.
-
StandardAero Inc (NYSE:SARO) expanded its capacity with new facilities in Dallas-Fort Worth and Augusta, Georgia, enhancing its ability to capture market share.
Negative Points
-
The company faced challenges with supply chain issues and parts availability, impacting operations.
-
There were nonrecurring costs related to refinancing, IPO, and acquisitions, leading to a net loss in Q4.
-
Free cash flow was negative for the full year 2024, burdened by IPO-related expenses and platform investments.
-
Margins in the Engine Services segment are expected to be impacted by initially low margins on the LEAP and CFM56 programs as production ramps up.
-
The military and helicopter end market revenue declined by 3% due to lower inductions on the Rolls-Royce AE1107 engine.
Q & A Highlights
Q: Can you discuss the factors driving strong growth in the commercial aerospace sector, particularly regarding LEAP, CFM56, and CF34 agreements? A: Russell Ford, CEO, explained that growth is driven by strong performance in CF34 and turboprop segments, with CFM56 expected to be the largest revenue growth platform in 2025. LEAP is still in early stages but shows promising growth potential. The commercial sector benefits from robust demand for CRS component repair work, and business aviation sees increasing volumes on flagship products like HTF7000.