StandardAero, a provider of aerospace engine aftermarket services for fixed and rotary-wing aircraft, reported its first-quarter earnings for 2025, revealing strong financial growth across its segments. The company, which focuses on commercial, military, and business aviation markets, showed a rise in both revenue and adjusted EBITDA, reflecting robust demand in the aerospace engine aftermarket.

For Q1 2025, StandardAero’s revenue reached $1.44 billion, an increase of 16.2% from $1.24 billion in the same period last year. This revenue growth was attributed to significant demand across the company’s business aviation and commercial aerospace segments, which rose by 12.9% and 18.1%, respectively.

Net income surged to $62.9 million, compared to just $3.2 million a year earlier, driven by increased operating earnings and a $33.8 million reduction in interest expenses resulting from the company’s updated capital structure after its IPO. This marked an increase in net income margin to 4.4% from 0.3% in Q1 2024.

StandardAero’s adjusted EBITDA was reported at $198.2 million, a 19.7% growth from $165.6 million year-over-year. The adjusted EBITDA margin expanded by 40 basis points to 13.8%, indicative of strong operational execution and favorable revenue mix.

In growth by segments, revenue from the Engine Services segment increased by $171 million, or 15.6%, to $1.27 billion, with the adjusted EBITDA from this segment rising by 16% to $174 million. The Component Repair Services segment experienced a 20.9% rise in revenue to $167.3 million, benefiting from the ATI acquisition, which contributed $21.9 million in the first quarter. Segment adjusted EBITDA also increased by 32.4% to $47.4 million, reflecting productivity improvements and a favorable pricing environment.

Free cash flow for the quarter was a use of $64 million, marking an improvement of $37.6 million from a year ago. The company’s net debt as of March 31, 2025 was $2.23 billion, a significant reduction from $3.30 billion the previous year, resulting in a net debt-to-adjusted EBITDA ratio of 3.1x, down from 5.7x.

Looking forward, StandardAero has raised its full-year revenue guidance to between $5.825 billion and $5.975 billion, up from a previous estimate of $5.800 billion to $5.950 billion. Adjusted EBITDA guidance has also been increased to a range of $775 million to $795 million, reflecting strong underlying demand and continued performance improvements across its operations. Overall market demand is projected to continue driving growth within the company’s segments, particularly in commercial aerospace and related services.