Mgmt Mtg Takes: WIP-ping CFM56 Into Shape Down in Dallas

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Mgmt Mtg Takes: WIP-ping CFM56 Into Shape Down in Dallas

USA | Aerospace & Defense Electronics

StandardAero EquityJuneResearch25, 2026

COMPANY UPDATEMgmt Mtg Takes: WIP-ping CFM56 Into Shape

RATING HOLDDown in Dallas

PRICE $26.85^

We met with CSO Alex Trapp, Pres of Comm'l ES Lewis Prebble, GM of DFW

Max Allen, & VP IR Rama Bondada on our Dallas Bus Tour. Key takes: 1) PRICE TARGET | % TO PT $30.00 | +12%

CFM56 (9% of '26E sales) at low-30 WIP engines today & increasingly heavier 52W HIGH-LOW $34.48 - $23.83

scopes, Asset Mgmt brings creative solutions to bear; 2) Step-change coming FLOAT (%) | ADV MM (USD) 74.0% | 108.17

in SARO's largest Mil platforms (~20% of sales), est 9% CAGR to '28; and 3) CRS MARKET CAP $9.0B

intersegment growing to 15%+ mix in support of LEAP/CFM56 profitability. TICKER SARO ^Prior trading day's closing price unless otherwise

noted.

SARO Dallas Overview & Creativity in Comm'l Solutions. DFW has ~560 employees (25% w/

20+ yrs of service) & growing to 600 by year-end in support of upcoming new work packages &

FY (Dec) CHANGE TO JEFe JEF vs CONS

CFM56-7B ramp in Building 2 (low-30 CFM56 engines in WIP & fully moved-in by July). Commercial

2026 2027 2026 2027

growth is anchored by LEAP (25 discrete customers today; target $1BB of '30 sales; TAM above the

$60BB lifetime revs plan w/ 36K engines in service/backlog as win rate outpf), Turboprop (40-50% REV NA NA -1% -1%

share of PWCs; expect growing penetration of ATRs), CF34 (Winnipeg expansion), and CFM56 here EPS NA NA +1% -1%

in Dallas. SARO's Asset Mgmt arm is among the largest players in CFM56 modules & USM w/ a

competing offering to the engine exchange model that has taken industry by storm. 2026 ($) Q1A Q2 Q3 Q4 FY

EPS 0.24 0.37 0.34 0.40 1.45

Step-Change Coming in Military.