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    Should StandardAero’s New US$450 Million Buyback Authorization Require Action From SARO Investors?

    Simply Wall St·12/21/2025 15:14:32
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    • Earlier in December 2025, StandardAero, Inc. (NYSE:SARO) announced that its board had authorized a share repurchase program of up to US$450,000,000 of common stock.
    • This sizable buyback authorization, highlighted alongside management’s appearance at Bernstein’s Industrials Forum in New York, underscores how the company is communicating confidence in its capital allocation priorities.
    • With StandardAero’s new US$450,000,000 repurchase plan in focus, we’ll now examine how this decision shapes the company’s investment narrative.

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    What Is StandardAero's Investment Narrative?

    To own StandardAero today, you need to believe its aircraft MRO niche can keep translating steady top line gains and very large earnings growth into better returns on capital over time. The newly authorized US$450,000,000 buyback adds a fresh short term catalyst on top of recently raised 2025 revenue guidance, especially after the earlier US$1.01 billion equity raise and a share price that has lagged both the market and aerospace peers over the past year. That said, the repurchase plan does not change the core risks: a rich earnings multiple, relatively low return on equity, thin net margins and interest costs that are still not well covered by earnings. The buyback sharpens the focus on execution, but it does not solve those issues by itself.

    However, the combination of high valuation and low returns on equity is something investors should be aware of. StandardAero's shares have been on the rise but are still potentially undervalued by 6%. Find out what it's worth.

    Exploring Other Perspectives

    SARO 1-Year Stock Price Chart
    SARO 1-Year Stock Price Chart
    Five Simply Wall St Community fair value estimates range from US$22.88 to US$35.50, underscoring how far apart individual views can sit. Set against the new US$450,000,000 buyback, that spread raises important questions about how confidently you view StandardAero’s earnings quality and balance sheet risk.

    Explore 5 other fair value estimates on StandardAero - why the stock might be worth as much as 24% more than the current price!

    Build Your Own StandardAero Narrative

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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.