What StandardAero (SARO)'s Raised Guidance and Winnipeg Expansion Means For Shareholders

In the past week, StandardAero reported strong third quarter and nine-month 2025 results with revenue rising to US$1.50 billion and net income up to US$68.12 million, while also raising its full-year revenue guidance and announcing a 70,000 sq. ft. expansion of its Winnipeg engine MRO facility. An additional highlight included StandardAero's delivery of its 1,000th GE Aerospace J85-5 engine to the United States Air Force, underlining its position as a key provider to military and commercial aviation customers. We'll look at how StandardAero's facility expansion and guidance raise help shape the company's long-term investment narrative.

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What Is StandardAero's Investment Narrative?

For someone looking at StandardAero as a potential long-term holding, the story hinges on belief in continued execution across commercial and military engine services, alongside prudent expansion and integration of new facilities. The company’s recent jump in quarterly earnings and upward revision to full-year revenue guidance point to stronger demand and efficiency gains, reinforced by successful delivery milestones like the 1,000th J85-5 engine to the US Air Force. The 70,000 square foot Winnipeg expansion, backed by provincial investment, could raise capacity longer-term and buffer StandardAero against demand cycles in regional airliners and Boeing 737 NG platforms. However, these impressive numbers come amid a still-low return on equity, expensive valuation versus sector averages, and pressure from recent share price declines. The news likely nudges near-term catalysts higher, with operational risks linked to executing these expansions now more relevant for shareholders.

But while revenue is climbing, lower returns could weigh on confidence, investors should be tuned into the details. Despite retreating, StandardAero's shares might still be trading 17% above their fair value. Discover the potential downside here.

Exploring Other PerspectivesSARO Community Fair Values as at Nov 2025

Among four community fair value estimates for StandardAero at Simply Wall St, the range stretches from US$22.88 to US$35.83 per share. While some see upside over recent prices, others flag value closer to US$23. With expansion and earnings guidance now updated, investor viewpoints offer a window into shifting expectations for sustained profit growth and risk. Explore these alternative perspectives to assess where you stand.

Story Continues

Explore 4 other fair value estimates on StandardAero - why the stock might be worth 13% less than the current price!

Build Your Own StandardAero Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your StandardAero research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free StandardAero research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate StandardAero's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SARO.

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