StandardAero Shareholders Plan to Offer 50 Million Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
StandardAero announced that two of its stockholders, affiliates of The Carlyle Group Inc. and GIC, intend to offer and sell an aggregate of 50M shares of the company's common stock, in an underwritten public offering pursuant to StandardAero's shelf registration statement filed with the SEC. The selling stockholders will receive all of the proceeds from the proposed offering. Morgan Stanley & Co., J.P. Morgan, and RBC Capital Markets are acting as joint lead book-running managers for the proposed offering. Carlyle is acting as co-manager for the proposed offering.
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Analyst Views on SARO
Wall Street analysts forecast SARO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SARO is 35.00 USD with a low forecast of 30.00 USD and a high forecast of 39.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
5 Buy
3 Hold
0 Sell
Moderate Buy
Current: 31.180
Low
30.00
Averages
35.00
High
39.00
Current: 31.180
Low
30.00
Averages
35.00
High
39.00
About SARO
StandardAero, Inc. is an independent, pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets. The Company provides a comprehensive suite of critical, value-added aftermarket solutions, including engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. The Company's segments include Engine Services and Component Repair Services. The Engine Services segment provides engine and airframe maintenance, repair, overhaul and related services to customers in the commercial aerospace, military & helicopter, and business aviation end markets. The Component Repair Services segment supports the commercial aerospace, military and helicopter and other end markets, including marine and land, and oil and gas with engine piece part repair, accessory repair and engine new part manufacturing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
StandardAero Projects 16% Revenue Growth for FY2025
- 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.
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