StandardAero, Inc. (SARO): A Bull Case Theory 

We came across a bullish thesis on StandardAero, Inc. on Monte Independent Investment Research’s Substack by Monte Investments. In this article, we will summarize the bulls’ thesis on SARO. StandardAero, Inc.’s share was trading at $25.13 as of December 1st. SARO’s trailing and forward P/E were 47.05 and 22.32, respectively according to Yahoo Finance.

StandardAero (NYSE: SARO) is a leading provider of aerospace engine maintenance, repair, and overhaul (MRO) services for commercial, military, and business aviation markets, recently valued at $9.5 billion and trading at 15.55x EV/EBITDA. Having gone public in October 2024 through an upsized IPO at $24 per share, the company raised $1.2 billion to strengthen its balance sheet, retiring $1.2 billion of high-cost debt and refinancing remaining obligations at lower rates.

Post-IPO, StandardAero has materially deleveraged, reducing net debt/aEBITDA from 5.27x in Q3 2024 to 2.94x by Q2 2025, with a target leverage of 2–3x. The firm’s robust free cash flow generation and 36x coverage ratio for FY26 suggest ample capacity to service upcoming obligations. Founded in 1911, StandardAero has evolved into one of the most diversified independent MRO players, licensed to service more than 40 engine platforms from OEMs including Rolls-Royce, GE Aerospace, Honeywell, Pratt & Whitney, CFM International, and Safran. The company’s customer base exceeds 5,000 clients globally, with roughly 80% of revenue derived from long-term agreements, often structured on time-and-materials or fixed-price bases.

StandardAero is positioned to benefit from multiple structural tailwinds: an aging installed base of commercial and business aircraft engines requiring ongoing maintenance, growth in new aircraft deliveries expanding the global serviceable fleet, and rising demand within the industrial gas turbine MRO segment. These factors collectively support sustained revenue visibility and profitability expansion. With its strengthened balance sheet, broad OEM relationships, and exposure to secular MRO growth trends, StandardAero represents a stable, cash-generative aerospace franchise with compelling upside potential for long-term investors.

Previously, we covered a bullish thesis on MGM Resorts International (MGM) by David in April 2025, which highlighted the company’s asset-light model, strong cash flows, and significant share buybacks driving long-term value. The stock has appreciated about 21.78% since our coverage. Monte Investments shares a similar approach, emphasizing StandardAero’s deleveraging, cash generation, and structural growth catalysts in aerospace.

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Disclosure: None.