StandardAero Prices Public Offering of 50 Million Shares
StandardAero's stock fell 3.07% as it hit a 20-day low amid broader market declines, with the Nasdaq-100 down 2.32% and the S&P 500 down 1.40%.
The company announced the pricing of a public offering of 50 million shares at $31.00 per share, expected to close on January 29, 2026. This offering will provide liquidity for shareholders but does not raise funds for the company itself, which may affect market perceptions of its future financing capabilities. Concurrently, StandardAero has entered into a $50 million stock repurchase agreement aimed at enhancing earnings per share and boosting shareholder confidence, reflecting strong market confidence in its leadership position in the aerospace aftermarket.
The implications of this offering and repurchase plan may lead to increased volatility in StandardAero's stock price, as investors weigh the potential dilution against the company's projected revenue growth and profitability improvements.
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- Public Offering Pricing: StandardAero announced the pricing of 50 million shares of common stock at $31.00 per share, expected to close on January 29, 2026, which will provide liquidity for shareholders and may impact the company's stock price.
- Shareholder Proceeds: All net proceeds from the offering will go to the selling stockholders, indicating that the company is not directly raising funds but providing an exit opportunity for shareholders, which could affect market perceptions of the company's future financing capabilities.
- Stock Repurchase Plan: Concurrently, the company has entered into an agreement to repurchase $50 million of its common stock at the same price as the public offering, aimed at enhancing earnings per share and boosting shareholder confidence.
- Underwriter Lineup: A consortium of prominent investment banks, including Morgan Stanley and J.P. Morgan, is acting as joint lead book-running managers for the offering, reflecting strong market confidence in StandardAero and its leadership position in the aerospace aftermarket.
- Public Offering Announcement: StandardAero disclosed that its stockholders plan to sell 50 million shares in an underwritten public offering, which is expected to enhance liquidity but will not provide any proceeds to the company, potentially impacting its capital structure.
- Additional Share Option: The selling stockholders are expected to grant underwriters a 30-day option to purchase an additional 7.5 million shares, a strategy that may dilute existing shareholders' stakes and increase market uncertainty.
- Stock Repurchase Agreement: Concurrently, StandardAero announced a $50 million repurchase of common stock from a selling stockholder, aimed at boosting shareholder confidence and stabilizing the stock price, contingent on the completion of the offering.
- Market Reaction: Following the announcement, StandardAero's stock fell 3.95% in after-hours trading to $31.81, reflecting market caution regarding the implications of the offering and repurchase plan.
- Revenue Forecast Increase: StandardAero expects FY2025 revenue to reach $6.05B to $6.08B, reflecting a 15.6% to 16.1% increase from last year's $5.24B, indicating strong demand and growth potential in the aerospace MRO market.
- Significant Net Income Growth: The company anticipates FY2025 net income of $270M to $280M, a substantial rise from $11M in FY2024, showcasing a marked improvement in profitability.
- Adjusted EBITDA Expectations: Projected adjusted EBITDA for FY2025 is $806M to $812M, up 16.7% to 17.6% from $690.5M last year, reflecting successful operational efficiency and cost control measures.
- Free Cash Flow Improvement: FY2025 free cash flow is expected to be $200M to $210M, a significant increase of $245M to $255M compared to a cash use of $45M last year, demonstrating effective cash flow management.
- Public Offering Announcement: StandardAero disclosed that its stockholders intend to offer 50 million shares of common stock through an SEC-registered public offering, which will benefit the stockholders without providing proceeds to the company itself.
- Underwriter Arrangement: Morgan Stanley, J.P. Morgan, and RBC Capital Markets are set to act as joint lead underwriters, with an option for underwriters to purchase an additional 7.5 million shares, contingent on market conditions for the offering's completion.
- Share Repurchase Agreement: The company has entered into a $50 million stock repurchase agreement with a stockholder, with the repurchase price matching the offering price, expected to close concurrently with the public offering, thereby enhancing shareholder value.
- Risk Advisory: The completion of both the public offering and the share repurchase is subject to customary closing conditions and market volatility, which may lead to discrepancies between actual outcomes and management's expectations.









