SARO - Stronger Start to the Year Than Expected; Guidance Raised

研报英文原文证据摘录

SARO - Stronger Start to the Year Than Expected; Guidance Raised

Truist Securities

Equity Research Report May 17, 2026

INDUSTRIALS: Commercial StandardAero, Inc. (SARO)

Aerospace

SARO - Stronger Start to the Year Than Expected; Guidance

Alexandra Mandery Raised

212-319-3461

Alexandra.Mandery@truist.com

We maintain our BUY rating/$35 PT on SARO post 1Q26. Management raised guidance

on revenue, adj EBITDA, and adj EPS, and end-market growth guidance of military and

helicopters to LDD growth and business aviation to the HSD-LDD range. Engine services

Stock Rating BUY are expected to see margin tailwinds as a result of the pass-through benefiting the remainder

Unchanged of the year. Management remains confident on outlook given: the tightness of the MRO

Price Target market, diversified portfolio, positioning on new generation platforms, and supply chain $35.00 management.

Unchanged

1Q26 Takeaways:

TR to Target 38.6% Transitory Factors Mask an Underlying 14%+ Margin Profile. While reported Adjusted

Price (May 15, 2026) $25.25 EBITDA margins fell to 12.5% (from 13.8% in 1Q25), the compression was driven by

52-Wk Range $33.12-$24.27 four identifiable, mostly non-recurring items: the ramp-up of LEAP/CFM56 DFW programs,

accelerated burndown of low-margin pass-through inventory, shipment timing, and a one- Market Cap ($M) $8,408

time military program closeout. Excluding these bridge items, underlying margins would have ADTV 2,933,447

exceeded 14%. Eliminations of $300MM–$400MM in no-margin pass-through revenue are

Shares Out (M) 333 expected by management over the coming quarters, which acts as a tailwind for margin

Short Interest Ratio/% Of Float 6.0% expansion.

Enterprise Value ($M) $10,560