Earnings Jump and Winnipeg Expansion Might Change The Case For Investing In StandardAero (SARO)

• StandardAero recently reported third quarter 2025 results, with sales rising to US$1.50 billion and net income reaching US$68.12 million, alongside upgraded full-year revenue guidance and plans for a 70,000 sq. ft. expansion of its Winnipeg engine facility supported by provincial funds.
• The facility expansion positions StandardAero to support increased demand for high-usage regional and commercial jet engines, further strengthening its role in key aerospace markets.
• We’ll explore how stronger earnings and the Winnipeg facility investment shape StandardAero’s investment narrative in the months ahead.

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What Is StandardAero's Investment Narrative?

For anyone considering StandardAero, it’s hard not to notice the recent momentum following the company’s latest quarterly results and facility expansion news. With sales climbing to nearly US$1.50 billion and net income jumping to US$68.12 million in the third quarter, the company responded by raising its full-year revenue outlook. The new Winnipeg expansion, partly funded by the province, signals a commitment to growing capability just as demand for regional and commercial jet engine support is on the rise. While this strengthens immediate growth catalysts and shows management’s focus on scaling operations, it doesn’t erase some key risks highlighted before this news, namely, relatively high valuation multiples, modest revenue growth forecasts, and weaker share price returns year-to-date. The question for investors now is whether the expansion and recent earnings strength will shift the narrative enough to outweigh these concerns. On the other hand, valuation concerns remain relevant and should not be ignored by investors.

Despite retreating, StandardAero's shares might still be trading 20% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

The Simply Wall St Community’s four fair value estimates for StandardAero range from US$22.88 to US$35.50 per share. While opinions vary widely, these community-driven numbers offer a striking contrast with StandardAero's recent expansion and earnings momentum, reminding you that views on future performance can differ substantially. Explore further to see which perspective resonates with your own analysis.

Explore 4 other fair value estimates on StandardAero - why the stock might be worth as much as 43% more 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.

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