Double-digit Revenue Growth Across All End Markets

StandardAero (NYSE:SARO) announced results today for the three months ended March 31, 2026 ("First Quarter 2026").

First Quarter 2026 Highlights

Revenue increased 13.3% year-over-year to $1,626.9 million
Net Income was $79.9 million; Diluted GAAP EPS was $0.24, Net Income as a percentage of Revenue was 4.9%
Adjusted Diluted EPS was $0.33 up from $0.29 in the prior year's quarter
Adjusted EBITDA increased $4.9 million year-over-year to $203.2 million; Adjusted EBITDA Margin was 12.5%
Cash Flow used in Operations was ($119.6) million; Free Cash Flow for the quarter was ($133.7) million
Announced acquisition of Unified Turbines
Increasing FY26 Revenue, Adjusted EBITDA and Adjusted EPS guidance

"StandardAero's first quarter performance provides a solid foundation for continued momentum in 2026," said Russell Ford, StandardAero's Chairman and Chief Executive Officer. "We delivered double-digit revenue growth across all three of our end markets, supported by sustained strength in commercial aerospace, accelerating bookings momentum in our military end market, and excellent execution on our business aviation platforms. Our Component Repair Services segment delivered double-digit Adjusted EBITDA growth, demonstrating the attractive margin profile in that segment and the continued success of our component repair strategy."

"Consistent with our commitment to this strategy, we also announced the acquisition of Unified Turbines, which adds important hot section component repair capabilities and further strengthens our broader CRS offering. In addition, we purchased approximately 2.0 million shares of our common stock for an aggregate purchase price of $60.1 million under our share repurchase program, reflecting our disciplined approach to capital allocation."

Mr. Ford continued, "With robust demand, a diversified end market mix, leading positions on critical engine platforms and a strategically designed global footprint, we believe StandardAero is well positioned to perform across a range of economic environments, including periods of broader macroeconomic uncertainty and elevated jet fuel prices. These strengths, combined with disciplined capital allocation and continued investment in our growth programs, give us confidence in our ability to deliver another year of double-digit earnings growth. As a result, we are raising our full year 2026 guidance."

First Quarter 2026 Consolidated Results

Revenue for the First Quarter 2026 was $1,626.9 million, an increase of $191.3 million, or 13.3%, from $1,435.6 million for the prior year period. The increase was driven by strong demand for our services and products across all three major end markets. The Business Aviation end market grew 19.6% compared to the prior year period, the Commercial Aerospace end market grew 11.4% compared to the prior year period, and the Military and Helicopter end market grew 10.3%, compared to the prior year period.

Net income for the First Quarter 2026 was $79.9 million, as compared to net income of $62.9 million for the prior year period, a 27.0% year-over-year growth rate.

Adjusted EBITDA for the First Quarter 2026 was $203.2 million, an increase of $4.9 million, or 2.5%, from $198.2 million for the prior year period. The increase reflects continued growth in volume and pricing, as well as productivity improvements, offset by the timing of engine shipments. Adjusted EBITDA margin of 12.5% declined 130 basis points compared to 13.8% in the prior year period, primarily due to mix and the continued ramp in LEAP and CFM56 DFW.

First Quarter 2026 Segment Results

Engine Services Segment

Engine Services segment revenue for the First Quarter 2026 was $1,447.1 million, an increase of $178.8 million, or 14.1%, from $1,268.3 million for the prior year period. The increase was driven primarily by a strong ramp in our growth platforms, including LEAP and CFM56, along with continued momentum on other key commercial, military, and business aviation platforms.

Engine Services Segment Adjusted EBITDA for the First Quarter 2026 was $178.6 million, an increase of $4.6 million, or 2.7%, from $174.0 million for the prior year period. The increase was driven by volume and productivity gains, partially offset by the timing of engine shipments in the quarter. Segment Adjusted EBITDA Margin of 12.3% decreased 140 basis points compared to 13.7% in the prior year period driven by mix including the ramp in LEAP and CFM56 DFW, compared to the previous year's period.

Component Repair Services Segment

Component Repair Services segment revenue for the First Quarter 2026 was $179.7 million, an increase of $12.4 million, or 7.4%, from $167.3 million for the prior year period. The increase was driven by continued robust demand on key commercial aerospace products, partially offset by softness in the military end market from the delayed effect of the U.S. Government shutdown in the previous quarter.

Component Repair Services Segment Adjusted EBITDA for the First Quarter 2026 was $52.4 million, an increase of $5.0 million, or 10.6%, from $47.4 million for the prior year period. Segment Adjusted EBITDA margins increased 90 basis points to 29.2% from 28.3% in the prior year period, driven by pricing, mix and improved productivity.

Full Year 2026 Guidance

StandardAero is updating its full year 2026 guidance:

		Full Year 2026	*($ in millions)*
		*Revenue¹(increase)***	$6,325 to $6,450
		Engine Services¹*(increase)*	$5,550 to $5,650
		Component Repair Services	$775 to $800
		Adjusted EBITDA (increase)	$875 to $905
		Engine Services Segment *(increase)*	$760 to $780
		Component Repair Services Segment	$220 to $230
		Free Cash Flow	$270 to $300
		Adjusted Earnings Per Share (increase)	$1.40 to $1.50


		End Market Revenue Growth Assumptions
		Commercial Aerospace²	Low-Double Digit to Mid-Teens YoY Growth
		Military & Helicopter *(increase)*	Low-Double Digit YoY Growth
		Business Aviation *(increase)*	High-Single Digit to Low-Double Digit YoY Growth

StandardAero has not reconciled its full year 2026 guidance related to Adjusted EBITDA, Free Cash Flow or Adjusted EPS to its most directly comparable forward looking GAAP financial measure because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measure without unreasonable effort or expense.

______________________________________

¹Includes effect from the elimination of $300 to $400 million in material pass-through revenue

² Excludes effect from the elimination of $300 to $400 million in material pass-through revenue

Conference Call and Webcast Information

StandardAero management will host a conference call today, May 7, 2026, at 5:00 PM ET, to discuss its results in more detail. The conference call will be broadcast live via webcast, and the webcast and accompanying slide presentation can be accessed by visiting the Events section on StandardAero's investor relations website at https://ir.standardaero.com/news-events/events. The conference call may also be accessed by dialing (877) 407-9762 or (201) 689-8538 for telephone access to the live call. Please click here for international toll-free access numbers.

For those unable to listen to the live conference call, a replay will be available after the call through the archived webcast in the Events section of the StandardAero's investor relations website or by dialing (877) 660-6853 or (201) 612-7415. The access code for the replay is 13759396. The replay will be available until 11:59 PM ET on May 21, 2026.

About StandardAero

StandardAero is a leading independent pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets. StandardAero provides a comprehensive suite of critical, value-added aftermarket solutions, including engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. StandardAero is an NYSE listed company under the ticker symbol SARO. For more information about StandardAero, go to www.standardaero.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Section 27A of the Securities Act of 1933, as amended (the "Securities Act"). In some cases, you can identify forward-looking statements by the words "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "foreseeable," "future," "intend," "may," "might," "objective," "ongoing," "plan," "potential," "predict," "project," "seek," "should," "will," or "would" and/or the negative of these terms, or other comparable terminology intended to identify statements about the future. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations for the fiscal year ended December 31, 2026, financial condition, liquidity, prospects, growth, strategies, the industry in which we operate and other information that is not historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this presentation, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions that are difficult to predict or quantify.

Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, among others: risks related to conditions that affect the commercial and business aviation industries; decreases in budget, spending or outsourcing by our military end-users; risks from any supply chain disruptions or loss of key suppliers; increased costs of labor, equipment, raw materials, freight and utilities due to inflation; future outbreaks and infectious diseases; risks related to competition in the market in which we participate; loss of an OEM authorization or license; risks related to a significant portion of our revenue being derived from a small number of customers; our ability to remediate effectively the material weaknesses identified in our internal control over financial reporting; our ability to respond to changes in GAAP; our or our third-party partners' failure to protect confidential information; data security incidents or disruptions to our IT systems and capabilities; our ability to comply with laws relating to the handling of information about individuals; changes to, and the impact of, United States tariff and import/export regulations; failure to maintain our regulatory approvals; risks relating to our operations outside of North America; failure to comply with government procurement laws and regulations; any work stoppage, hiring, retention or succession issues with our senior management team and employees; any strains on our resources due to the requirements of being a public company; risks related to our substantial indebtedness; risks related to the ownership of our common stock, including the fact that Carlyle owns a significant amount of our voting power; our success at managing the risks of the foregoing, and the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2025 and our other filings with the SEC.

As a result of these factors, we cannot assure you that the forward-looking statements in this press release will prove to be accurate. You should understand that it is not possible to predict or identify all such factors. We operate in a competitive and rapidly changing environment. New factors emerge from time to time, and it is not possible to predict the impact of all of these factors on our business, financial condition or results of operations.

Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives, plans or cost savings in any specified time frame or at all. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. We caution you not to place undue reliance on these forward-looking statements. All forward looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Forward-looking statements speak only as of the date of this press release. We do not undertake any 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. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

Non-GAAP Financial Measures

This press release includes "non-GAAP financial measures," which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), including Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt to Adjusted EBITDA, Adjusted Diluted EPS and Free Cash Flow. We use these non-GAAP financial measures to evaluate our business operations.

Certain of the non-GAAP financial measures presented in this press release are supplemental measures of our performance, in the case of Adjusted EBITDA and Adjusted EBITDA Margin, that we believe help investors understand our financial condition and operating results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures provide investors greater transparency to the information used by management for its operational decision-making and allow investors to see our results "through the eyes of management." We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance. We also present Net Debt to Adjusted EBITDA and Free Cash Flow, which are liquidity measures, that we believe are useful to investors because it is also used by our management for measuring our operating cash flow, liquidity and allocating resources. We believe it is important to measure the free cash flows we have generated from operations, after accounting for routine capital expenditures required to generate those cash flows. When read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry.

We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, further adjusted for certain non-cash items that we may record each period, as well as non-recurring items such as acquisition costs, integration and severance costs, refinance fees, business transformation costs and other discrete expenses, when applicable. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We define Adjusted Net Income as GAAP Net income, adjusted for certain one-time items that we may record in a period, as well as non-recurring items such as acquisition costs, integration and severance costs, refinance fees, business transformation costs and other discrete expenses, when applicable, adjusted for the tax effect. We define Adjusted EPS as Adjusted Net Income divided by the Total Diluted Shares Outstanding. We believe that Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted EPS are important metrics for management and investors as they remove the impact of items that we do not believe are indicative of our core operating results or the overall health of our company and allows for consistent comparison of our operating results over time and relative to our peers. We define Net Debt to Adjusted EBITDA as long-term debt, less cash and cash equivalents divided by Adjusted EBITDA. We define free cash flow as cash from operating activities less capital expenditures.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with GAAP. Readers should review the reconciliations of our non-GAAP financial measures to the corresponding GAAP measures included in this press release and should not rely on any single financial measure to evaluate our business.

We have presented forward-looking statements regarding Adjusted EBITDA, Free Cash Flow and Adjusted Diluted EPS. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measure determined in accordance with GAAP. The determination of the amounts that are excluded from each non-GAAP financial measure is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period in reliance on the exception provided by item 10(e)(1)(i)(B) of Regulation S-K. We are unable to present a quantitative reconciliation of each forward-looking Adjusted EBITDA, Free Cash Flow and Adjusted Diluted EPS measure to its most directly comparable forward looking GAAP financial measure because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measure without unreasonable effort or expense. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the company's future financial results. These non-GAAP financial measures are preliminary estimates and subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between our actual results and the forward-looking non-GAAP financial data set forth above may be material.

STANDARDAERO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share figures)

	March 31,			December 31,
	2026			2025
ASSETS
Current assets:
Cash	$	89,173		$	289,717
Accounts receivable (less allowance for expected credit losses of $13,209 and $13,484, respectively)		880,032			654,390
Contract assets, net		1,247,285			1,071,703
Inventories		762,632			827,691
Prepaid expenses and other current assets		60,358			42,776
Income tax receivable		25,173			10,182
Total current assets		3,064,653			2,896,459
Property, plant and equipment, net		582,866			579,971
Operating lease right of use asset, net		230,382			222,151
Customer relationships, net		899,653			920,432
Other intangible assets, net		233,987			244,877
Goodwill		1,684,255			1,684,255
Other assets		6,145			6,434
Deferred income tax assets		2,832			2,832
Total assets	$	6,704,773		$	6,557,411
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	808,938		$	679,772
Accrued expenses and other current liabilities		88,890			91,499
Accrued employee costs		92,996			74,008
Operating lease liabilities, current		25,975			22,308
Due to related parties		—			438
Contract liabilities		377,214			411,321
Income taxes payable, current		26,415			13,547
Long-term debt, current portion		23,259			23,444
Total current liabilities		1,443,687			1,316,337
Long-term debt		2,186,498			2,191,161
Operating lease liabilities, non-current		217,511			212,365
Deferred income tax liabilities		154,759			157,206
Income taxes payable, non-current		5,770			5,770
Other non-current liabilities		6,824			7,261
Total liabilities		4,015,049			3,890,100
Commitments and contingencies (Note 10)
Stockholders' equity
Common stock ($0.01 par value, 3,500,000,000 shares authorized; 334,470,264 issued and 332,274,519 outstanding as of March 31, 2026 and 334,461,630 issued and 334,294,245 outstanding as of December 31, 2025)		3,323			3,345
Preferred stock ($0.01 par value, 100,000,000 shares authorized; no shares were issued)		—			—
Additional paid-in capital		3,961,497			3,958,039
Accumulated deficit		(1,205,974	)		(1,285,904	)
Accumulated other comprehensive loss		(8,479	)		(8,169	)
Treasury stock (at cost, 2,195,745 and 176,019 shares as of March 31, 2026 and December 31, 2025)		(60,643	)		—
Total stockholders' equity		2,689,724			2,667,311
Total liabilities and stockholders' equity	$	6,704,773		$	6,557,411

STANDARDAERO, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share figures)

	Three Months Ended March 31,
	2026		2025
Revenue	$	1,626,857	$	1,435,588
Cost of revenue		1,387,485		1,217,858
Selling, general and administrative expense		71,942		64,475
Amortization of intangible assets		24,332		24,332
Operating income		143,098		128,923
Interest expense		38,151		43,791
Income before income taxes		104,947		85,132
Income tax expense		25,017		22,189
Net income	$	79,930	$	62,943

Earnings per share:
Basic	$	0.24	$	0.19
Diluted	$	0.24	$	0.19

Weighted-average shares of common stock outstanding
Basic		327,257		328,439
Diluted		333,363		334,162

STANDARDAERO, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)

	Three Months Ended March 31,
	2026			2025
Operating activities
Net income	$	79,930		$	62,943
Adjustments to reconcile net loss from operations to net cash provided by operating activities:
Depreciation and amortization		46,461			48,676
Amortization of deferred finance charges and discounts		1,623			1,666
Amortization of interest cap premiums		1,632			2,699
Payment of interest rate cap premiums		(1,727	)		(2,747	)
Stock compensation expense		3,458			2,045
Loss (gain) from disposals, net		(614	)		—
Non-cash lease expense		566			199
Deferred income taxes		(2,260	)		(5,751	)
Foreign exchange gain (loss), net		354			292
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net		(225,642	)		(152,604	)
Contract assets, net		(175,582	)		(56,407	)
Inventories, net		65,059			(28,824	)
Prepaid expenses and other current assets		(19,276	)		(22,893	)
Accounts payable, accrued expenses and other current liabilities		143,131			126,482
Contract liabilities		(34,107	)		7,252
Due to/from related parties		(438	)		(649	)
Income taxes payable and receivable		(2,123	)		(6,365	)
Net cash used in operating activities		(119,555	)		(23,986	)
Investing activities
Purchase of property, plant and equipment		(15,590	)		(25,338	)
Payments for purchase of intangible assets		—			(15,000	)
Proceeds from disposal of property, plant and equipment		1,406			268
Net cash used in investing activities		(14,184	)		(40,070	)
Financing activities
Proceeds from long-term debt		100,000			195,000
Repayment of long-term debt		(106,012	)		(90,964	)
Repurchase of common stock		(60,064	)		—
Repayments of long-term agreements		(158	)		(1,602	)
Net cash (used in) provided by financing activities		(66,234	)		102,434
Effect of exchange rate changes on cash		(571	)		(141	)
Net increase (decrease) in cash		(200,544	)		38,237
Cash at beginning of the period		289,717			102,581
Cash at end of the period	$	89,173		$	140,818
Supplemental cash flow information:
Supplemental disclosure of non-cash investing activities:
Acquisition of property, plant and equipment, liability incurred, but not paid	$	3,394		$	991
Acquisition of intangible assets, liability incurred but not paid		633			—

Selected financial information for each segment is as follows:

	Three months ended March 31, 2026
	Engine Services			Component Repair Services		Total Segments
	(in thousands)
Revenue from external customers	$	1,466,579		$	160,278	$	1,626,857
Intersegment revenue		(19,435	)		19,435		—
Total segment revenue		1,447,144			179,713		1,626,857
Other segment items ⁽¹⁾		1,268,511			127,312		1,395,823
Segment Adjusted EBITDA	$	178,633		$	52,401	$	231,034
Corporate ⁽²⁾							27,878
Depreciation and amortization							46,461
Interest expense							38,151
Business transformation costs (LEAP and CFM) ⁽³⁾							6,622
Non-cash stock compensation expense							3,458
Integration costs and severance ⁽⁴⁾							341
Other ⁽⁵⁾							3,176
Income before income taxes						$	104,947

(1)		Other segment items for each reportable segment primarily includes cost of sales and other selling, general and administrative expenses.

(2)		Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Corporate Supply Chain and Corporate Engineering Services finance, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company's debt.

(3)		Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company's CFM56 capabilities into Dallas, Texas.

(4)		Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs.

(5)		Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of the Company's ordinary course of continuing operations.

	Three months ended March 31, 2025
	Engine Services			Component Repair Services		Total Segments
	(in thousands)
Revenue from external customers	$	1,286,276		$	149,312	$	1,435,588
Intersegment revenue		(17,963	)		17,963		—
Total segment revenue		1,268,313			167,275		1,435,588
Other segment items ⁽¹⁾		1,094,304			119,914		1,214,218
Segment Adjusted EBITDA	$	174,009		$	47,361	$	221,370
Corporate ⁽²⁾							23,143
Depreciation and amortization							48,676
Interest expense							43,791
Business transformation costs (LEAP and CFM) ⁽³⁾							12,917
Stock compensation ⁽⁴⁾							2,045
Integration costs and severance ⁽⁵⁾							1,380
Other ⁽⁶⁾							4,286
Income before income taxes						$	85,132

(1)		Other segment items for each reportable segment primarily includes cost of sales and other selling, general and administrative expenses.

(2)		Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Corporate Supply Chain and Corporate Engineering Services finance, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company's debt.

(3)		Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company's CFM56 capabilities into Dallas, Texas.

(4)		Represents non-cash stock compensation expense associated with awards issued under 2019 Long-Term Incentive Plan in connection with Carlyle's ownership.

(5)		Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs.

(6)		Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of our ordinary course of continuing operations.

The following table presents a reconciliation of net income and net income margin to Adjusted EBITDA and Adjusted EBITDA Margin, respectively:

		Three Months Ended March 31,
		2026			2025
	(in thousands, except percentages)
Net income		$	79,930		$	62,943
Income tax expense			25,017			22,189
Depreciation and amortization			46,461			48,676
Interest expense			38,151			43,791
Business transformation costs (LEAP and CFM) ⁽¹⁾			6,622			12,917
Non-cash stock compensation expense			3,458			2,045
Integration costs and severance ⁽²⁾			341			1,380
Secondary offering costs			1,350			—
Other ⁽³⁾			1,826			4,286
Adjusted EBITDA		$	203,156		$	198,227
Revenue		$	1,626,857		$	1,435,588
Net income margin			4.9	%		4.4	%
Adjusted EBITDA Margin			12.5	%		13.8	%

(1)		Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company's CFM56 capabilities into Dallas, Texas.

(2)		Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs.

(3)		Represents other costs not recurring in the ordinary course of business including professional fees related to business transformation and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, and other non-comparable events to measure operating performance as these events arise outside of the Company's ordinary course of continuing operations.

The following table presents a reconciliation of Debt to Net Debt and Net Debt to Adjusted EBITDA:

	March 31,		March 31,
	2026		2025
	(in millions, except percentages)
2024 Term Loan Facilities	$	2,221.9	$	2,244.4
2024 Revolving Credit Facility		—		110.0
Finance leases		18.1		18.3
Other		1.0		1.1
Debt		2,241.0		2,373.8
Less Cash		89.2		140.8
Net Debt	$	2,151.8	$	2,233.0

LTM Adjusted EBITDA	$	813.1	$	723.3
Net Debt to Adjusted EBITDA	2.6x		3.1x

The following table presents revenue by segment, Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin:

	Three Months Ended March 31,
	2026			2025
	(in thousands, except percentages)
Engine Services
Segment Revenue	$	1,447,144		$	1,268,313
Segment Adjusted EBITDA	$	178,633		$	174,009
Segment Adjusted EBITDA Margin		12.3	%		13.7	%
Component Repair Services
Segment Revenue	$	179,713		$	167,275
Segment Adjusted EBITDA	$	52,401		$	47,361
Segment Adjusted EBITDA Margin		29.2	%		28.3	%

The following table presents a reconciliation of Cash Flow from Operations to Free Cash Flow:

	Three Months Ended March 31,
	2026			2025
	(in thousands)
Net cash used in operating activities	$	(119,555	)	$	(23,986	)
Purchase of property, plant and equipment		(15,590	)		(25,338	)
Payments for purchase of intangible assets		—			(15,000	)
Proceeds from disposal of property, plant and equipment		1,406			268
		(14,184	)		(40,070	)
Free cash flow	$	(133,739	)	$	(64,056	)

		Three months ended March 31, 2026
		$			EPS
	(in millions, except per share data )
Net income/Diluted EPS		$	79.9		$	0.24
Business transformation costs (LEAP and CFM)			6.6			0.02
Stock compensation			3.5			0.01
Integration costs and severance			0.3			0.00
Secondary offering costs			1.3			0.00
Professional services fees and other			1.8			0.01
One-offs included in adjusted EBITDA add-back			13.5			0.04
Amortization of acquired intangibles			24.3			0.07
Tax adjustment			(9.2	)		(0.03	)
Adjusted Net Income/Adjusted Diluted EPS		$	108.5		$	0.33

		Three months ended March 31, 2025
		$			EPS
	(in millions, except per share data )
Net income/Diluted EPS		$	62.9		$	0.19
Business transformation costs (LEAP and CFM)			12.9			0.04
Stock compensation			2.0			0.01
Integration costs and severance			1.4			0.00
Professional services fees and other			4.3			0.01
One-offs included in adjusted EBITDA add-back			20.6			0.06
Amortization of acquired intangibles			24.3			0.07
Tax adjustment			(11.2	)		(0.03	)
Adjusted Net Income/Adjusted Diluted EPS		$	96.6		$	0.29

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