StandardAero Q2 2026 Results: Record EBITDA Margins, Guidance Raised
StandardAero delivered strong Q2 2026 results with revenue of $1,599.7 million (+4.6% YoY), net income of $97.3 million (+43.7% YoY), and record Adjusted EBITDA Margin of 14.4%. Adjusted Diluted EPS rose 24% to $0.40. The company signed a key OEM license agreement, closed the Unified Turbines acquisition, and raised its full-year 2026 guidance for revenue ($6,375–$6,500 million), Adjusted EBITDA ($885–$910 million), and Adjusted Diluted EPS ($1.50–$1.57).
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StandardAero announced results for the three months ended June 30, 2026, delivering strong second-quarter performance driven by margin expansion and continued operational momentum. Adjusted Diluted EPS came in at $0.40, up 24% from $0.32 in the prior year's quarter, while net income rose 43.7% year-over-year to $97.3 million. Diluted GAAP EPS was $0.29, and Net Income Margin expanded to 6.1% from 4.4% in the prior year period. The company also raised its full-year 2026 guidance across revenue, Adjusted EBITDA, and Adjusted Diluted EPS, citing strong first-half performance and clear visible demand signals.
Second Quarter 2026 Financial Highlights
The following table summarizes StandardAero's key financial metrics for the quarter:
| Metric: | Q2 2026 | Q2 2025 | YoY Change |
|---|---|---|---|
| Revenue: | $1,599.7 million | $1,528.9 million | +4.6% |
| Net Income: | $97.3 million | $67.7 million | +43.7% |
| Net Income Margin: | 6.1% | 4.4% | +170 bps |
| Adjusted EBITDA: | $229.9 million | $204.6 million | +12.3% |
| Adjusted EBITDA Margin: | 14.4% | 13.4% | +100 bps |
| Adjusted Diluted EPS: | $0.40 | $0.32 | +24% |
| Diluted GAAP EPS: | $0.29 | $0.20 | +45% |
| Free Cash Flow: | $50.2 million inflow | — | — |
Revenue growth was driven by continued strong demand in commercial aerospace and business aviation, partially offset by the previously announced elimination of low-to-no margin material pass-through revenue on restructured contracts and lower military sales in the Component Repair Services segment. The Commercial Aerospace end market grew 5.7% compared to the prior year period, the Business Aviation end market grew 5.6%, and the Military and Helicopter end market decreased 2.6%.
Segment Performance
The following table presents segment-level results for the quarter:
| Segment Metric: | Q2 2026 | Q2 2025 | YoY Change |
|---|---|---|---|
| Engine Services Revenue: | $1,405.1 million | $1,350.7 million | +4.0% |
| Engine Services Adj. EBITDA: | $204.2 million | $178.5 million | +14.4% |
| Engine Services Adj. EBITDA Margin: | 14.5% | 13.2% | +130 bps |
| Component Repair Services Revenue: | $194.6 million | $178.3 million | +9.2% |
| Component Repair Services Adj. EBITDA: | $51.2 million | $51.6 million | -0.9% |
| Component Repair Services Adj. EBITDA Margin: | 26.3% | 29.0% | -270 bps |
The Engine Services segment benefited from volume growth, productivity gains, and the elimination of material pass-through revenue, partially offset by continued ramp costs in the LEAP and CFM56 DFW programs. The Component Repair Services segment saw strong demand on commercial aerospace products and aeroderivative platforms, but margins were pressured by negative mix and input delays on certain military platforms.
Strategic Developments
During the quarter, StandardAero signed a license agreement with a key OEM partner that significantly expands its relationship and provides improved economics across multiple platforms, strengthening its long-term positioning. The company also closed the acquisition of Unified Turbines, further building out its Component Repair Services capabilities, and continued to execute on its share repurchase program. Cash Flow used in Operations was $72.3 million for the quarter, while Free Cash Flow was an inflow of $50.2 million as supply chain initiatives began to be realized.
"StandardAero delivered strong second quarter results with continued operational momentum," said Russell Ford, StandardAero's Chairman and Chief Executive Officer. "Amid the higher fuel price environment, we continue to see robust demand across the commercial aerospace platforms we serve, which translated into 12.3% Adjusted EBITDA growth year-over-year. Strong operational execution and the elimination of passthrough revenues from our restructured contracts allowed us to achieve record Adjusted EBITDA Margins of 14.4% and reach profitability on our LEAP and our CFM56 DFW programs during the quarter."
Full Year 2026 Guidance
StandardAero raised its full-year 2026 guidance, reflecting strong first-half performance and continued demand visibility. The updated guidance is presented below:
| Metric: | Full Year 2026 Guidance |
|---|---|
| Revenue (increase): | $6,375 to $6,500 million |
| Engine Services Revenue (increase): | $5,600 to $5,700 million |
| Component Repair Services Revenue: | $775 to $800 million |
| Adjusted EBITDA (increase): | $885 to $910 million |
| Engine Services Adj. EBITDA (increase): | $770 to $785 million |
| Component Repair Services Adj. EBITDA: | $220 to $230 million |
| Adjusted Free Cash Flow (revised): | $270 to $300 million |
| Adjusted Diluted EPS (revised): | $1.50 to $1.57 |
End market revenue growth assumptions for the full year include Low-Double Digit to Mid-Teens YoY growth for Commercial Aerospace (excluding the effect of $300 to $400 million in material pass-through revenue elimination), Low-Double Digit YoY growth for Military & Helicopter, and High-Single Digit to Low-Double Digit YoY growth for Business Aviation. Revenue and Engine Services guidance includes the effect from the elimination of $300 to $400 million in material pass-through revenue.
How might the recent license agreement with the key OEM partner impact StandardAero's long-term margin sustainability and competitive moat against other MRO providers?
What specific operational risks remain for the LEAP and CFM56 DFW programs now that they have reached profitability, and how could ramp costs affect future Adjusted EBITDA margins?
Given the negative mix and input delays in the Component Repair Services segment, how does management plan to stabilize margins in this division amidst fluctuating military platform demand?
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