StandardAero raises 2026 guidance and lifts its buyback to $1.0B despite a third-quarter revenue miss
The aerospace aftermarket company intends to start a $350M accelerated share repurchase with Morgan Stanley, and now guides to full-year revenue of $6.525B to $6.645B.
Table: Revenue, Adjusted EBITDA, Adjusted free cash flow, Adjusted diluted EPS
StandardAero's third-quarter revenue of $1.56B fell short of the $1.59B expected, yet the company raised its outlook for the year and put more cash behind its own shares. Earnings per share of $0.39 beat expectations by $0.01.
It now expects 2026 revenue of $6.525B to $6.645B and Adjusted EBITDA of $905M to $920M. Adjusted free cash flow is guided to $270M to $300M, and Adjusted Diluted EPS to $1.57 to $1.62. These are management's own forecasts. With the EPS beat only a cent and revenue short, the raised outlook is the bigger news.
The buyback is the firmer signal. The board increased the share repurchase authorization by $560M to a total of $1.0B, leaving $850M available. StandardAero intends to enter a $350M accelerated share repurchase agreement with Morgan Stanley under the expanded authorization.
Chief Executive Paul McElhinney said record 24% Adjusted EBITDA growth in the Engine Services segment drove the quarter's results and supported the increase to full-year guidance.
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