Aerospace & Aviation▲
StandardAero Raises 2026 Revenue Outlook After Strong Q2
StandardAero reported second-quarter 2026 sales of US$1,599.69 million and net income of US$97.28 million, and raised its full-year 2026 revenue outlook to between US$6,375 million and US$6,500 million. The company also reached profitability on its LEAP and CFM56 engine programs and secured a US$180 million license expansion expected to lift recurring adjusted EBITDA. The upgraded guidance and LEAP profitability reinforce the company's effort to convert its growing engine footprint into more profitable revenue streams, though supply chain constraints and end-market cyclicality remain watchpoints.
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Aerospace & Aviation▲
StandardAero raises 2026 adjusted EPS guidance to $1.50-$1.57 and announces $180 million OEM license expansion
StandardAero raised its full-year 2026 adjusted earnings per share guidance to a range of $1.50 to $1.57 and announced a $180 million OEM license expansion expected to generate approximately $25 million of incremental annual adjusted EBITDA at accretive margins. The company also lifted its full-year revenue guidance by $50 million to $6.375 billion to $6.5 billion and its adjusted EBITDA guidance to $885 million to $910 million. Second-quarter revenue reached $1.6 billion, adjusted EBITDA rose to $230 million with a record margin of 14.4%, and net income was $97 million, or $0.40 per adjusted share. The license expansion, signed with a key OEM partner, spans multiple turbofan and turboprop platforms and is projected to ramp over the next few years. StandardAero also completed the acquisition of Unified Turbines and repurchased $40 million of shares in the quarter, bringing year-to-date buybacks to $100 million.
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StandardAero selected by GE to support engines for UK military helicopter fleet
StandardAero has been selected by GE Aerospace to build, maintain and overhaul the CT7-2E1 engines that will power the United Kingdom's New Medium Helicopter fleet. The agreement covers 46 engines plus spares, replacement parts and long-term support for 23 Leonardo AW149 helicopters ordered under the UK Ministry of Defence's New Medium Helicopter program, with deliveries scheduled between 2030 and 2033. Work will be performed at StandardAero's Gosport facility in southern England, which will also handle engines for future export aircraft. The contract expands StandardAero's military engine maintenance business and its long-standing relationship with GE Aerospace, while strengthening its position in the UK defense market. Financial terms were not disclosed.
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Aerospace & Aviation▲
StandardAero signs LEAP engine maintenance agreement with Arajet
StandardAero has signed a maintenance agreement with Dominican airline Arajet to provide aftermarket services for CFM International LEAP-1B engines that power the carrier's Boeing 737 Max 8 aircraft. Under the agreement, Arajet will have access to maintenance, repair and overhaul services at StandardAero's San Antonio, Texas, facility, including performance restoration shop visits, quick-turn shop visits, component repairs, short-term engine leasing and engine health monitoring services. Arajet, which began operations in 2022, operates Boeing 737 Max aircraft from bases in Santo Domingo and Punta Cana and serves destinations across North America, Central America, South America and the Caribbean. StandardAero became a CFM LEAP Premier MRO provider in the Americas after signing a branded service agreement with CFM International in 2023, and has since expanded to performance restoration work. Neither StandardAero nor Arajet disclosed financial terms of the agreement or its duration.
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Aerospace & Aviation▼
Morgan Stanley stays bullish on aerospace and defense ahead of Q2 earnings
Morgan Stanley maintained a constructive outlook on the aerospace and defense sector ahead of second-quarter earnings, citing resilient commercial aerospace demand, improving aircraft production, and favorable long-term defense spending trends, while becoming more selective after recent stock volatility and valuation shifts. The brokerage reiterated positive views on commercial aerospace, defense, and space, highlighting durable aftermarket demand driven by sustained fleet utilization, low aircraft retirement rates, constrained maintenance capacity, and continued engine maintenance needs. It also said Boeing's production recovery is gaining momentum, with the 737 MAX running at 47 aircraft per month and further certification milestones expected to support the commercial aerospace outlook. In defense, Morgan Stanley said investors continue to underestimate the likelihood of a roughly $1.1 trillion U.S. fiscal 2027 base defense budget, arguing that supply-chain improvements and expanding missile production capacity should provide further upside for the sector. The firm also expects space companies to benefit from upcoming launch milestones, improving order trends, and NASA's commercial International Space Station procurement. Reflecting changing valuations rather than weakening fundamentals, Morgan Stanley downgraded Loar Holdings and TransDigm to Equal-weight, while cutting CAE and Voyager Technologies to Underweight. At the same time, it named FTAI Aviation as its top commercial aerospace pick, Northrop Grumman as its preferred defense stock, and HawkEye 360 as its top space investment. The brokerage also revised several price targets, lowering targets for companies including Honeywell Aerospace, VSE, Textron, StandardAero, Loar, and TransDigm, while raising targets for Heico, Curtiss-Wright, and Moog. It said the expanding universe of publicly traded aerospace and defense companies has increased investment opportunities but also requires greater selectivity.
Investing.com·42dRead more ▾
Aerospace & Aviation▲
Mar Vista U.S. Quality Strategy Adds StandardAero as New Position in Q2 2026
Mar Vista Investment Partners initiated a new position in StandardAero during the second quarter of 2026, according to its latest investor letter. StandardAero provides maintenance, repair, and overhaul services for commercial, business aviation, and military aircraft engines. The firm cited the company's recurring revenue, long-duration customer relationships, high regulatory barriers to entry, and a growing installed base of aircraft requiring ongoing service as key strengths. As of July 9, 2026, StandardAero shares closed at $28.06, giving it a market capitalization of $9.32 billion. The stock posted a one-month return of 4.27% but lost 5.97% over the past 52 weeks.
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SARO
GE Aerospace vs. StandardAero: Which Aerospace Stock Is the Better Buy in 2026?
GE Aerospace and StandardAero present contrasting investment cases in the aerospace sector. GE Aerospace, with a massive installed base of over 44,000 commercial engines, reported fiscal 2025 revenue of nearly $45.9 billion and net income of close to $8.7 billion, while generating roughly $7.3 billion in free cash flow. StandardAero, an independent maintenance provider, posted nearly $6.1 billion in revenue and net income of about $277.4 million, with roughly 80% of its revenue from long-term agreements. On valuation, StandardAero trades at a forward P/E of 23.2 and a P/S ratio of 1.6, significantly below GE Aerospace's 48.5 forward P/E and 8.3 P/S ratio. The analysis notes GE Aerospace's century-long history and perceived safety, while StandardAero offers a more attractive valuation but carries higher customer concentration and internal control remediation risks.
The Motley Fool·47dRead more ▾
Aerospace & Aviation▲
StandardAero Bullish Thesis Targets $44 by 2028 on LEAP Engine Cycle
A bullish thesis on StandardAero, Inc. (SARO) posted on Valueinvestorsclub.com by Astor argues the pure-play aerospace engine aftermarket services provider is undervalued and poised for significant free cash flow growth. The thesis highlights StandardAero's leading positions across key engine platforms, sticky customer relationships, and long-standing OEM partnerships that create high switching costs. A key catalyst is the accelerating LEAP engine maintenance cycle, where shop visits are expected to rise rapidly as the installed base matures, driving margin expansion and higher profitability without substantial capital investment. Combined with lower capex, working capital improvements, and debt reduction, these factors are projected to support over 20% annual free cash flow per share growth through the end of the decade. Trading at roughly 11x 2026 EV/EBITDA, below comparable aerospace aftermarket peers, the thesis derives a year-end 2028 price target of approximately $44 per share, implying a 24% annualized internal rate of return over three years.
Yahoo Finance·54dRead more ▾
Aerospace & Aviation▲
StandardAero Upgraded to BB by S&P on Strategic Expansion and Cash Flow Growth
StandardAero announced that S&P Global Ratings upgraded its issuer credit rating to BB from BB- and its senior secured debt ratings to BB from BB-. The upgrade reflects the company's investments in strategic expansion, stable margins, consistent top-line growth, and positive cash flow expansion. CFO Dan Satterfield said the upgrade underscores the strength of StandardAero's competitive positioning and sustained demand across its global MRO ecosystem. The S&P action follows Moody's upgrade of StandardAero's corporate family rating and related debt facilities in May 2026.
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