StandardAero, Inc.

Good afternoon, and welcome to Standard Aero's third quarter 2025 earnings conference call. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I'd now like to turn the call over to Raman Bodhada, Vice President, Investor Relations. Please proceed.

Thank you, and good afternoon, everyone. Welcome to Standard Aero's third quarter 2025 earnings call. I'm joined today by Russell Ford, our Chairman and Chief Executive Officer, Dan Satterfield, our Chief Financial Officer, and Alex Trapp, our Chief Strategy Officer. Alongside today's call, you can find our earnings release as well as the accompanying presentation on our website at ir.standardarrow.com. An audio replay of this call will also be made available, which you can access on our website or by phone. The phone number for the audio replay is included in the press release announcing this call. Before we begin, as always, I would like to remind everyone that statements made during this call include forward-looking statements under federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in our filing with the Securities and Exchange Commission, including in the risk factor section of our annual report on Form 10-K for the year ended December 31, 2024. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Additionally, during today's call, we will discuss certain non-GAAP financial measures, such as adjusted EBITDA, adjusted EBITDA margin, free cash flow, net debt to adjusted EBITDA leverage ratio, and organic revenue growth. A definition and reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings release and in the appendix to the earnings slide presentation on our website. Non-GAAP financial measures should be considered in addition to and not as a substitute for GAAP measures. With that out of the way, I'd like to now turn the call over to our Chairman and CEO, Russell Ford. Russ, over to you.

Thank you, Rama, and thanks to everyone for joining our earnings call today. Before we begin, I'd like to take a moment to wish an early happy Veterans Day to all of those who have served and those currently serving in the armed forces. I'm proud to say that at Standard Aero, nearly 20% of our domestic workforce are veterans, and we are immensely grateful for their sacrifices they and their families have made through their service. Now let's turn to our results beginning on slide three. The third quarter was another strong performance by Standard Aero. We delivered revenue of $1.5 billion, growing 20% year-over-year, and adjusted EBITDA of $196 million, up 16% year-over-year growth. This marks another quarter of double-digit top-line and earnings growth driven by demand strength across our end markets and continued operational discipline throughout our business. Within a complex operating environment, our diversified business model across end markets, OEMs, and more than 40 platforms we serve continues to provide us with growth opportunities and resilience, enabling us to perform well through industry cycles. Now turning to our end market performance in the quarters. Our commercial aerospace revenue grew 18% year-over-year, led by a near doubling of LEAP revenues from last quarter and strong contributions from the CF-34, CFN-56, and turboprop engine platforms. Our backlog of MRO work remains strong, and the MRO supply-demand environment remains tight globally. We expect this favorable dynamic to continue for the foreseeable future. Business aviation revenue was up 28% year-over-year, driven by growth across mid- and super-mid-size aircraft. We saw strong growth in our HTF-7000 program, which should continue, supported by the successful expansion of our Augusta facility. Our military and helicopter revenue grew 21% year-over-year, fueled by AE-1107 engine volumes after the V-22 grounding last year, ongoing strength of our C-130 transport aircraft programs and the J-85 engine, which powers the T-38 trainer, as well as the contribution from our aeroturbine acquisition. From an earnings perspective, we continue to generate strong, high-quality growth. Adjusted EBITDA rose 16% year-over-year, driven by volume growth, pricing, and mix, particularly within component repair services, where we delivered another record margin quarter. Even as we invest heavily in ramping our newest programs, we've continued to demonstrate double-digit earnings growth and margin resiliency. Our adjusted EBITDA margin was 13.1%, inclusive of some lower margin work scopes and the expected short-term impact of the ramps of our LEAP program and the new CFN 56 DFW facility, both of which are expanding at a rapid pace while we come down the learning curve as planned. This result underscores the strength of our overall portfolio design. We anticipate these ramping programs will turn profitable in early 2026 and continue to accrete from there. Starting on the right side of page four, I'll give some updates on the status of our strategic priorities, which we expect to drive long-term compounding value for our shareholders. We continue to be pleased with the progress of our LEAP industrialization and the outlook for this program. LEAP revenues continue to scale rapidly and are a key driver of our commercial growth. Through the end of the third quarter, we've inducted nearly 50 LEAP engines and expect to complete more than 60 LEAP engine inductions this year. LEAP sales in the third quarter nearly doubled sequentially from Q2. Importantly, the long-term demand outlook for LEAP is getting even more robust, with multiple wins this quarter and a large number of sizable opportunities in the pipeline. With our recent wins, our planned 2026 slots are rapidly filling up, and we continue to gain even more confidence that our LEAP revenues alone will reach a billion dollars annually in the next few years. Moving to our other growth platform investments, The CFM 56 expansion at our DFW facility is also progressing well with strong bookings momentum, including a significant three-year award from a major North American carrier during the quarter. Last quarter, we talked about the expansion of our business aviation facility in Augusta, Georgia. That expansion is now operational, with the added capacity helping drive significant growth on our HTF 7000 program where we are seeing strong demand for mid and super midsize business jets and are positioned as the worldwide exclusive independent heavy overhaul provider on this engine platform. We are also pleased to announce today the planned expansion of our MRO facility in Winnipeg, Canada. This facility is home to our CF34 program, where we expanded our license relationship with GE last year. We continue to see outsized demand and share gains on this platform and are adding approximately 70,000 square feet to the facility to capture that growth. This expansion will increase our Winnipeg footprint for both the CF34 and CFN56 programs by more than 40%, as well as significantly increase our CRS insourcing opportunities. We broke ground on the expansion in September, and expect to complete it in the second half of 2026. The investment is supported by contributions from the government of Manitoba, with whom we've been working closely in planning this project, resulting in a total net investment for Standard Aero in the high single-digit millions. We view this as an attractive and high-return investment opportunity given the long-term contracts we already have in place to fill a large portion of this capacity. Our component repair business continues to execute, delivering record margins this quarter and driving 32% adjusted EBITDA growth year over year. The team is performing well on synergy capture from the ATI acquisition, and we've expanded our portfolio of OEM-authorized LEAP repairs to more than 450. Additionally, we're now the first non-OEM provider of source-controlled LEAP 1A and 1B fan blade repairs, including structural edge and coating repairs, and have stood up our dedicated LEAP fan blade repair cell at our CRS facility in Cincinnati. Furthermore, our CRS segment was awarded new OEM authorizations on two critical source substantiated fan blade repairs on the CF34-8 engine. We are continuing to expand our portfolio of over 20,000 licensed component repairs, which we expect to drive third-party sales growth and strengthen the synergies between our CRS and engine services business. As a result of our continuing strong performance and execution on our strategic priorities, we are raising our four-year 2025 guidance across all key metrics, revenue, earnings, and free cash flow, reflecting our confidence in the fourth quarter and continued strength across both segments. Dan will detail this guidance shortly. In addition, our balance sheet remains a source of strategic flexibility and gives us ample liquidity for both organic investments and accretive M&A. As we move forward, our priorities are clear. First, continue to ramp our growth platforms efficiently. Second, drive productivity and cash conversion across the enterprise. Third, continue expanding our CRS repair capabilities. And finally, continue investing organically and through acquisition in programs and capabilities that capitalize on our long-term growth opportunities. With that, I'll turn the call over to Dan to discuss our financial performance and outlook with additional detail. Dan?