StandardAero Soars into Q1 2025 with Strong Revenue Growth and Adjusted EBITDA Expansion
May 12, 2025 – StandardAero has kicked off the year on a high note, delivering a robust first quarter performance with revenue growth of 16% year-over-year and adjusted EBITDA expansion by 20%, as reported in their Q1 2025 earnings call transcript.
According to Russell Ford, Chairman and CEO, the company's strong execution across both engine services and component repair services, combined with continuing demand across key end markets, contributed to this impressive growth. StandardAero's commercial aerospace segment grew 18% year-over-year, driven by strong demand across major platforms and continued growth in engine maintenance activity.
Despite recent headlines of slowing growth at some airlines, Ford emphasized that the company is not typically impacted by short-term volatility in passenger traffic, as historically airline operators have taken a longer-term view when it comes to critical engine maintenance. The outlook for the commercial aftermarket remains very strong with long-term demand visibility in an MRO-constrained market, and StandardAero's backlog remains robust.
The company's Business Aviation Group increased 13% versus Q1 last year, with solid demand on engine platforms that power midsize, super midsized, and large cabin business aircraft. The military business grew 10%, driven by the contribution from the Aero Turbine acquisition last year as well as growth on the J85 program.
StandardAero's adjusted EBITDA margins continue to expand with a 40 basis point improvement this quarter, driven by continued growth, price and productivity initiatives, as well as favorable mix on the higher-margin component repair segment. The Engine Services segment saw a favorable work scope mix, which offset initial lower-margin LEAP work as the company works through the industrialization learning curve on that platform.
These results highlight the strength of the StandardAero business and the inherent durability of their purposely diversified portfolio in which they service over 40 engine platforms covering all major engine OEMs and end markets. The company's positioning as the world's leading independent MRO enables them to smoothly navigate the dynamic global macroeconomic and trade environment.
"We think this portfolio construction and our positioning enable us to smoothly navigate the dynamic global macroeconomic and trade environment in which we operate," said Ford, emphasizing the benefits of StandardAero's diversified business model.
As the aerospace industry continues to evolve, StandardAero is well-positioned to capitalize on emerging trends and opportunities. With a strong track record of execution and a commitment to innovation, the company is poised for continued success in the years ahead.
"
