StandardAero: The Growth Is Real, But The Cash Still Needs To Land

Naples Investor 559 Followers Follow Summary StandardAero is rated Buy at $24.07, with a 12-month fair value of $32.00, offering ~33% upside. SARO's reported revenue growth understates true momentum; underlying commercial aerospace growth is compounding in the mid-teens after contract restructuring. Key operational milestone: LEAP and CFM56 lines reached profitability a year ahead of expectations, but cash conversion remains a critical watchpoint. Valuation is compelling at 11.1x 2026 EBITDA, but sponsor overhang from Carlyle caps near-term upside; a re-rating is likely as the overhang diminishes. Monty Rakusen/DigitalVision via Getty Images Thesis I wrote the first draft of a StandardAero ( SARO ) article on July 10th at $28.06, around the time I was working on RELL, and never submitted it. The stock then went to $24 and change, a 52-week low, on no This article was written by Naples Investor 559 Followers Follow Naples Investor is a middle-market private company business executive with over 35 years experience in finance and accounting with almost 20 years in the top finance or accounting role. I have an MBA in Finance from one of the top 5 Finance programs in the USA as well as a CMA (inactive). Currently, I am consulting, mostly in sell-side due diligence in private equity.My investment style is long-term oriented with an eclectic mix between growth stocks and conservative dividend-paying equities. I've been fortunate to have been featured in two Wall Street Journal articles in the past four years. Analyst’s Disclosure: I/we have a beneficial long position in the shares of SARO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.