StandardAero reports 13% revenue growth but discloses new internal control weaknesses

Filed May 8, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 13, 2025 · ~2 min read

Key Changes

• high

  Company disclosed three material weaknesses in internal controls as of March 31, 2026, including deficiencies in control environment, period-end reporting, and IT general controls. These weaknesses resulted in immaterial corrections to historical financial statements for 2024, 2025, and Q1 2025.

  Controls & Procedures verify on EDGAR →
• high

  Adjusted EBITDA margin compressed from 13.8% to 12.5% year-over-year, driven by lower-margin LEAP and CFM56 DFW platform ramp-up. Engine Services segment margin declined from 13.7% to 12.3% despite 14% revenue growth.

  MD&A: Segment Performance verify on EDGAR →
• high

  Operating cash flow usage increased from $24 million to $120 million year-over-year, driven by $249 million working capital build to support business expansion. Net income grew 27% to $80 million but cash generation deteriorated significantly.

  MD&A: Cash Flows verify on EDGAR →