Latest news with #SARO
GMA Network
01-07-2025
- Business
- GMA Network
DBM releases P3.627B for continuous gov't rural electrification program
The Department of Budget and Management (DBM) on Tuesday announced it has approved the release of P3.627 billion for the continuous implementation of the government's rural electrification initiative. In a statement, the DBM said Budget Secretary Amenah Pangandaman approved the Special Allotment Release Order (SARO) for the 2025 Strategized Rural Electrification and Operational Reliability for Electric Cooperatives (ECs) to the National Electrification Administration (NEA). "We have released more than P3.627 billion to cover the continuous implementation of NEA's Rural Electrification Program. Of this amount to cover the energization of 1,752 sitios and five barangays under the 2025 subsidy," said Pangandaman. Broken down, of the P3.627-billion released funds, P3.439 billion will be used to cover the energization of 1,752 sitios under the subsidy for Fiscal Year 2025 for the Sitio Electrification Program under the 2025 General Appropriations Act (GAA). Another P68.839 million will be allotted for the rehabilitation of five barangays that were previously served by off-grid solutions but deemed unsustainable, through the Barangay Line Enhancement Program. The DBM, moreover, said a total of P120 million will be utilized to procure and distribute 4,000 units of Solar Photovoltaic Mainstreaming to provide electricity to communities without access to reliable power sources. The Budget Department said that, from 2017 to 2024, the NEA has already energized a total of 9,645 sitios, leaving a balance of 9,622 unenergized targeted sitios to be funded by the national budget until 2028. —AOL, GMA Integrated News
Yahoo
13-05-2025
- Business
- Yahoo
StandardAero Inc (SARO) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $1.4 billion, 16% growth year-over-year. Adjusted EBITDA: $198 million, 20% growth year-over-year. Adjusted EBITDA Margin: 13.8%, 40 basis point improvement. Net Income: $63 million, up from $3 million in the prior year period. Free Cash Flow: Use of $64 million, $38 million improvement year-over-year. Engine Services Revenue: $1.3 billion, 16% growth year-over-year. Component Repair Services Revenue: $167 million, 21% growth year-over-year. Leverage Ratio: Improved to 3.09x from 5.7x at the end of Q1 2024. 2025 Revenue Guidance: $5.825 billion to $5.975 billion. 2025 Adjusted EBITDA Guidance: $775 million to $795 million. Warning! GuruFocus has detected 4 Warning Sign with SARO. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. StandardAero Inc (NYSE:SARO) reported a strong start to 2025 with a 16% year-over-year revenue growth and a 20% increase in adjusted EBITDA. The company experienced robust demand across its key markets, including commercial aerospace, business aviation, military, and helicopter sectors. Adjusted EBITDA margins expanded by 40 basis points, driven by growth, pricing, productivity initiatives, and a favorable mix in the higher-margin component repair segment. StandardAero Inc (NYSE:SARO) secured additional regulatory approvals for LEAP engines, expanding its global support capabilities. The company increased its 2025 sales and earnings guidance, reflecting strong demand and performance across its segments. The company faces a potential $15 million impact from tariffs in 2025, although mitigation strategies are in place. Engine Services margins were flat due to mix headwinds from the LEAP and CFM56 growth programs, which initially have lower margins. Free cash flow was negative in Q1, attributed to working capital seasonality and increased capital expenditures. The Component Repair Services segment faced temporary headwinds from facility consolidation and the exit of a low-margin noncore product line. There is ongoing uncertainty regarding the Section 232 investigation, which could impact the MRO sector, although specifics are not yet clear. Q: With U.S. airlines discussing slower capacity, how confident are you in the visibility and growth of the CF34 platform? A: Russell Ford, CEO: Despite volatility in passenger traffic, engine MRO is nondiscretionary, and airlines prioritize engine maintenance over other discretionary aftermarket activities. This dynamic has not changed, and we continue to see strong demand for CF34 maintenance. Q: How is the M&A environment affecting your capital deployment strategy? A: Alex Trapp, SVP of Business Development: We remain active in pursuing M&A opportunities. The environment has become more robust, with many attractive targets that align with our strategic fit and synergy criteria. We have ample balance sheet capacity and free cash flow to invest. Q: Can you elaborate on the growth drivers for Engine Services, particularly regarding military and CF34 contributions? A: Russell Ford, CEO: The military segment is driven by consistent demand for transport and fighter aircraft engines, such as the C-130 and F-16. The CF34 platform saw a record quarter, and we expect continued growth as we ramp up production. Q: What are the expectations for LEAP and CFM56 business transformation costs and their impact on margins? A: Daniel Satterfield, CFO: We are on track with our major platform investments, including LEAP and CFM56. These programs initially have lower margins due to industrialization costs, but we expect them to become accretive as we progress through the year. Q: How are you managing the risks associated with expanding repair capabilities in harsh environments like India and UAE? A: Russell Ford, CEO: Maintenance businesses benefit from harsh environments as they accelerate maintenance needs. We have extensive experience with engines operating in challenging conditions and price our services accordingly to manage risks effectively. Q: Can you provide an update on the ATI acquisition and its integration? A: Daniel Satterfield, CFO: The ATI acquisition is performing well, with strong revenue and margin contributions. It integrates seamlessly with our existing J85 program, delivering expected synergies and opening new market opportunities. Q: What is the status of your LEAP program, and how is the supply chain affecting it? A: Daniel Satterfield, CFO: We inducted our first full PRSV in December and delivered our first CTEM LEAP engine recently. Supply chain issues have not significantly impacted us as we are still in the early stages of production ramp-up. Q: How do you view the potential impact of the Section 232 investigation on your MRO operations? A: Russell Ford, CEO: It's too early to speculate on the impact as the investigation is new and details are limited. We believe it may be related to ongoing trade negotiations, but we are monitoring the situation closely. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-03-2025
- Business
- Yahoo
Why StandardAero (SARO) Is Surging In 2025?
We recently published a list of . In this article, we are going to take a look at where StandardAero, Inc. (NYSE:SARO) stands against other aerospace stocks that are surging in 2025. The aerospace industry is riding a wave of growth as global conflicts across the world have sparked a surge in demand. This has led to swelling backlogs and a flood of orders from every corner of the globe. Meanwhile, recent administration changes in the United States have shaken things up. European countries are ramping up their aerospace orders and are eager to secure advanced technology. Some nations have hesitated over U.S. orders amid shifting policies, but cancellations seem unlikely since trade wars have simmered down a bit. Beyond geopolitics, the industry is buzzing with other trends. The commercial aviation sector is roaring back with record passenger traffic. This has pushed airlines to modernize fleets with fuel-efficient aircraft. Moreover, AI software is making defense aircraft more potent, and the entire industry has seen a bump in growth. For this article, I screened the best-performing aerospace stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A technician using advanced radiographic testing equipment to inspect an aircraft. Number of Hedge Fund Holders In Q4 2024: 35 StandardAero, Inc. (NYSE:SARO) is an aerospace engine aftermarket company for fixed and rotary wing aircraft. The stock is up significantly so far in 2025 as StandardAero (NYSE:SARO) announced the pricing of a secondary offering of 36 million shares at $28.00 per share by affiliates of The Carlyle Group and GIC Private Limited. This was an upsized offering. Moreover, StandardAero (NYSE:SARO) reported solid Q4 results with revenue growth of 21.8% year-over-year to $1.41 billion and adjusted EBITDA growth of 37.2%. Despite reporting a net loss due to one-off costs, investors focused on the company's strong revenue trajectory and guidance for 2025. StandardAero (NYSE:SARO) projects revenue between $5.8 billion and $5.95 billion for the year, which implies 12% growth from 2024. The consensus price target of $34.89 implies 19.07% upside. SARO stock is up 18.42% year-to-date. Overall, SARO ranks 11th on our list of aerospace stocks that are surging in 2025. While we acknowledge the potential of SARO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SARO but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
