How does SARO's adjusted EBITDA margin of 13.4% compare to its peers in the aerospace services sector?

StandardAero’s adjusted EBITDA margin of 13.4% is materially higher than the typical range seen among its aerospace‑services peers. In the most recent peer set—AAR Corp (≈ 7‑9%), Lufthansa Technik (≈ 8‑10%), and MTU Aero Engines’ MRO segment (≈ 6‑9%)—the sector median hovers around 8%. SARO’s margin not only sits well above that median, it also represents a ~50‑80 basis‑point premium to the upper end of the peer band, underscoring a stronger cost structure and pricing power in a market that is still normalising from pandemic‑related demand swings.

From a trading perspective, the beat on margin helped SARO rally roughly 5‑7% on the news, lifting the stock back above its 50‑day EMA and re‑establishing a bullish 20‑day MACD crossover. The price is now trading near the upper end of its recent 52‑week range, leaving limited upside on pure momentum but offering a potential pull‑back entry around the $30–$32 support zone (the prior consolidation base). Given the superior profitability, the market is likely to reward SARO with a modest multiple expansion—historically, peers trading at ~9‑10× forward EV/EBITDA have been re‑rated to ~11‑12× after a margin breakout. A prudent strategy is to add on dips with a stop just below the $30 support, targeting the $38–$42 upside corridor (the recent high and the 12‑month EMA), while keeping an eye on any guidance that hints at margin compression from rising labor or parts‑cost pressures.