StandardAero, Inc.

Previous wording

On August 23, 2024, we acquired Aero Turbine, Inc. (“Aero Turbine”), a provider of engine component repair and other value-added engine aftermarket services for U.S. and international customers for an estimated purchase price of approximately $132.0 million, comprising an initial cash purchase price of $116.8 million and $15.2 million representing the estimated fair value of additional consideration contingently payable based upon the achievement of gross profit in excess of certain gross profit targets for the period from January 1, 2024, to December 31, 2026, subject to post-closing adjustments. The maximum contingent consideration payable from the Company to the seller is $21.0 million. The acquisition was funded with borrowings under the ABL Credit Facility, which was repaid on September 6, 2024 with incremental borrowings from the Prior 2024 Term Loan B-1 Facility and the Prior 2024 Term Loan B-2 Facility.

Current wording

On August 23, 2024, we acquired Aero Turbine, Inc. (“Aero Turbine”), a provider of engine component repair and other value-added engine aftermarket services for U.S. and international customers for an estimated purchase price of approximately $132.0 million, comprising an initial cash purchase price of $116.8 million and $15.2 million representing the estimated fair value of additional consideration contingently payable based upon the achievement of gross profit in excess of certain gross profit targets for the period from January 1, 2024, to December 31, 2026, subject to post-closing adjustments. The maximum contingent consideration payable from the Company to the seller is $21.0 million. The acquisition was funded with borrowings under the Prior ABL Credit Facility, which was repaid on September 6, 2024 with incremental borrowings from the Prior 2024 Term Loan B-1 Facility and the Prior 2024 Term Loan B-2 Facility.

Previous wording

We have incurred, and expect to continue to incur, certain non-recurring professional fees and other expenses as part of our transition to a public company. As a public company, we are implementing additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies, for which we expect to incur additional recurring expenses. In particular, our accounting, legal and personnel-related expenses and directors’ and officers’ insurance costs have increased as we establish more comprehensive compliance and governance functions, establish, maintain and review internal control over financial reporting in accordance with the Sarbanes-Oxley Act and prepare and distribute periodic reports in accordance with SEC rules. Our financial statements following the IPO have reflected and will continue to reflect the impact of these expenses. See “Part I. Item 1A. Risk Factors—Risks Related to Management and Employees—The requirements of being a public company may strain our resources, increase our costs, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members” in our 2024 Form 10-K.

Current wording

We have incurred, and expect to continue to incur, certain professional fees and other expenses as part of our transition to a public company not recurring in the ordinary course of business. As a public company, we are implementing additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies, for which we expect to incur additional recurring expenses. In particular, our accounting, legal and personnel-related expenses and directors’ and officers’ insurance costs have increased as we establish more comprehensive compliance and governance functions, establish, maintain and review internal control over financial reporting in accordance with the Sarbanes-Oxley Act and prepare and distribute periodic reports in accordance with SEC rules. Our financial statements following the IPO have reflected and will continue to reflect the impact of these expenses. See “Part I. Item 1A. Risk Factors—Risks Related to Management and Employees—The requirements of being a public company may strain our resources, increase our costs, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members” in our 2024 Form 10-K.

Previous wording

We define Adjusted EBITDA as net income before interest expense, income tax expense, 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, refinancing fees, business transformation costs and other discrete expenses, when applicable. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin 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.

Current wording

We define Adjusted EBITDA as net income before interest expense, income tax expense, depreciation and amortization, further adjusted for certain non-cash items that we may record each period, as well as items not recurring in the ordinary course of business such as acquisition costs, integration and severance costs, refinancing fees, business transformation costs and other discrete expenses, when applicable. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin 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.

Previous wording

Represents other non-recurring costs 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. See Note 13, "Related Party Transactions" to the Company’s condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for descriptions of the consulting services agreements with Carlyle Investment Management L.L.C. and Beamer Investment Inc.

Current wording

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. See Note 13, "Related Party Transactions" to the Company’s condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for descriptions of the consulting services agreements with Carlyle Investment Management L.L.C. and Beamer Investment Inc.

Previous wording

Revenue. Revenue increased $181.7 million, or 13.5%, to $1,528.9 million for the three months ended June 30, 2025 from $1,347.2 million for the three months ended June 30, 2024. The increase was driven by both the Engine Services and Component Repair Services segments, with continued strength across the commercial aerospace and business aviation end markets, which increased 13.7% and 8.9%, respectively, compared to the three months ended June 30, 2024. The military and helicopter end market increased 11.7% compared to the prior year period, driven by the contribution of the acquisition of Aero Turbine on August 23, 2024, during the three months ended June 30, 2025.

Current wording

Revenue. Revenue increased $253.3 million, or 20.4%, to $1,498.0 million for the three months ended September 30, 2025 from $1,244.6 million for the three months ended September 30, 2024. The increase was driven by both the Engine Services and Component Repair Services segments, with continued strength across the commercial aerospace and business aviation end markets, which increased 17.8% and 28.0%, respectively, compared to the three months ended September 30, 2024. The military and helicopter end market increased 21.1% compared to the prior year period, including contribution from the acquisition of Aero Turbine on August 23, 2024, during the three months ended September 30, 2025.

Previous wording

Cost of revenue. Cost of revenue increased $130.2 million, or 11.2%, to $1,292.8 million for the three months ended June 30, 2025 from $1,162.6 million for the three months ended June 30, 2024. This increase was driven by a growth in volumes, which drove higher material and direct labor expenses, as well as increased other overhead costs directly related to the performance of aftermarket services, in addition to the cost of revenue attributable to the acquisition of Aero Turbine on August 23, 2024.

Current wording

Cost of revenue. Cost of revenue increased $216.4 million, or 20.4%, to $1,274.8 million for the three months ended September 30, 2025 from $1058.4 million for the three months ended September 30, 2024. This increase was driven by a growth in volumes, which drove corresponding higher material and direct labor expenses, as well as increased other overhead costs directly related to the performance of aftermarket services, in addition to the cost of revenue attributable to the acquisition of Aero Turbine on August 23, 2024.

Previous wording

Selling, general and administrative expense. SG&A expense was $140.5 million and $108.8 million for the six months ended June 30, 2025 and 2024, respectively, and was 4.7% and 4.2% of revenue for the six months ended June 30, 2025 and 2024, respectively. The $31.6 million increase in SG&A expense was primarily due to a $12.0 million increase in personnel costs and a $4.0 million increase in professional fees largely attributable to our transition to a public company, in addition to $5.9 million in stock compensation expense and a $3.5 million loss on disposals in the current period with no similar charges incurred in the prior year period, and a one time legal settlement in the prior year period with a benefit of $4.0 million.

Current wording

Selling, general and administrative expense. SG&A expense was $60.9 million and $62.9 million for the three months ended September 30, 2025 and 2024, respectively, and was 4.1% and 5.1% of revenue for the three months ended September 30, 2025 and 2024, respectively. The $2.0 million decrease in SG&A expense was primarily due to a decline of $5.6 million in professional services fees incurred year over year, in advance of the company’s initial public offering on October 2, 2024, as well as a $3.6 million insurance recovery which was recognized in the current period. Partially offsetting these favorable items was $4.1 million in stock compensation expense with no similar charge incurred in the prior year period, and a $3.3 million increase in personnel costs largely attributable to our transition to a public company.

Previous wording

Amortization of intangible assets. Amortization of intangible assets was $24.6 million and $23.3 million for the three months ended June 30, 2025 and 2024, respectively. The increase of $1.3 million, or 5.6%, was primarily driven by the intangible assets allocated to customer relationships resulting from the Aero Turbine acquisition on August 23, 2024.

Current wording

Amortization of intangible assets. Amortization of intangible assets was $24.9 million and $24.0 million for the three months ended September 30, 2025 and 2024, respectively. The increase of $0.9 million, or 3.8%, was primarily driven by the intangible assets allocated to customer relationships resulting from the Aero Turbine acquisition on August 23, 2024. Due to the timing of the Aero Turbine acquisition, there was lower impact on total amortization expense for the three months ended September 30, 2024, due to the timing of the transaction.

Previous wording

Interest expense. Interest expense decreased $34.2 million or 43.8% from $78.1 million for the three months ended June 30, 2024 to $43.8 million for the three months ended June 30, 2025. This decrease in interest expense was largely driven by (i) the repayment of the Prior Senior Notes in full on October 3, 2024 concurrent with the Company’s IPO, and (ii) entrance into the New Credit Agreement on October 31, 2024 providing for the New 2024 Term Loan Facilities and the New 2024 Revolving Credit Facility and the use of the proceeds to repay in full amounts outstanding under the Prior Credit Agreement and the Prior ABL Credit Agreement, terminating each of the debt facilities thereunder, and resulting in a weighted average interest rate of borrowings for the three months ended June 30, 2025 of 6.8% compared to 8.9% for the three months ended June 30, 2024. See “—Liquidity and Capital Resources” for further discussion of our debt and financing activities.

Current wording

Interest expense. Interest expense decreased $35.3 million or 44.2% from $79.9 million for the three months ended September 30, 2024 to $44.6 million for the three months ended September 30, 2025. This decrease in interest expense was largely driven by (i) the repayment of the Prior Senior Notes in full on October 3, 2024 concurrent with the Company’s IPO, and (ii) entrance into the New Credit Agreement on October 31, 2024 providing for the New 2024 Term Loan Facilities and the New 2024 Revolving Credit Facility and the use of the proceeds to repay in full amounts outstanding under the Prior Credit Agreement and the Prior ABL Credit Agreement, terminating each of the debt facilities thereunder, and resulting in a weighted average interest rate of borrowings for the three months ended September 30, 2025 of 6.8% compared to 9.0% for the three months ended September 30, 2024. See “—Liquidity and Capital Resources” for further discussion of our debt and financing activities.

Previous wording

Refinancing costs. Refinancing costs of $0.7 million associated with the modified portion of the Prior Credit Agreement amendment were incurred during the three months ended June 30, 2024 with no similar charges in the current year.

Current wording

Refinancing costs. Refinancing costs of $1.5 million associated with the modified portion of the Prior Credit Agreement amendment were incurred during the three months ended September 30, 2024 with no similar charges in the current year.

Previous wording

Income tax expense. Income tax expense was $46.2 million for the six months ended June 30, 2025, as compared to $37.9 million for the six months ended June 30, 2024. This was an increase $8.3 million, or 22.0%. This increase in tax expense was due to the mix of forecasted earnings, which in 2025 resulted in full year forecasted U.S. pre-tax income, as opposed to a U.S. forecasted pre-tax loss in 2024. Additionally, year to date income before taxes for the six months ended June 30, 2025 increased to $176.9 million as compared to $46.5 million for the six months ended June 30, 2024. The tax expense, and corresponding effective tax rates for the six months ended June 30, 2025 were higher than the statutory rate of 21.0% primarily due to the GILTI provision which was enacted in 2017 as part of the Tax Cuts and Jobs Act. Further, for the six months ended June 30, 2024, the partial valuation allowance recorded against our interest expense carryforward deferred tax asset under Section 163(j) of the Internal Revenue Code was also a driver of the effective tax rate exceeding the statutory rate.

Current wording

Income tax expense. The incremental income tax expense was $24.7 million for the three months ended September 30, 2025, as compared to $0.2 million for the three months ended September 30, 2024. This was an increase of $24.5 million. This increase in tax expense was due primarily to the increase in the three months ended pretax income which was $92.8M at September 30, 2025 compared to $16.6 million at September 30, 2024, which is an increase of $76.2 million. Additionally, for the three months ended September 30, 2024, the tax expense recorded was only $0.2 million. This was due to the estimated annual effective tax rate going from 81.5% in the three months ended June 30, 2024 to 60.4% in the three months ended September 30, 2024 which was driven by the reduction of the forecasted valuation allowance on US interest expense limitation (IRC 163(j)). The tax expense, and corresponding effective tax rates for the three months ended September 30, 2025 and 2024, were higher than the statutory rate of 21.0% primarily due to the Global Intangible Low-taxed Income (“GILTI”) provision which was enacted in 2017 as part of the Tax Cuts and Jobs Act. Further, for the three months ended September 30, 2024, the partial valuation allowance recorded against our interest expense carryforward deferred tax asset under Section 163(j) of the Internal Revenue Code also was a driver of the effective tax rate exceeding the statutory rate.

Previous wording

The following table sets forth our consolidated statements of operations data for the six months ended June 30, 2025 and 2024:

Current wording

The following table sets forth our consolidated statements of operations data for the nine months ended September 30, 2025 and 2024:

Previous wording

Revenue. Revenue increased $381.6 million, or 14.8%, to $2,964.5 million for the six months ended June 30, 2025 from $2,582.9 million for the six months ended June 30, 2024. The increase was driven by both the Engine Services and Component Repair Services segments, with continued strength across the commercial aerospace and business aviation end markets, which increased 15.8% and 10.8%, respectively, compared to the prior year period. The military and helicopter end market increased 10.9% compared to the prior year period, driven by the contribution of the acquisition of Aero Turbine on August 23, 2024, which was partially offset by timing of lighter work scope shop visits during the three months ended March 31, 2025.

Current wording

Revenue. Revenue increased $634.9 million, or 16.6%, to $4,462.5 million for the nine months ended September 30, 2025 from $3,827.5 million for the nine months ended September 30, 2024. The increase was driven by both the Engine Services and Component Repair Services segments, with continued strength across the commercial aerospace and business aviation end markets, which both increased 16.4%, compared to the prior year period. The military and helicopter end market increased 14.1% compared to the prior year period, including contribution from the acquisition of Aero Turbine on August 23, 2024.

Previous wording

Cost of revenue. Cost of revenue increased $293.7 million, or 13.2%, to $2,510.6 million for the six months ended June 30, 2025 from $2,216.9 million for the six months ended June 30, 2024. This increase was driven by a growth in volumes, which drove higher material and direct labor expenses, as well as increased other overhead costs directly related to the performance of aftermarket services, in addition to the cost of revenue attributable to the acquisition of Aero Turbine on August 23, 2024.

Current wording

Cost of revenue. Cost of revenue increased $510.1 million, or 15.6%, to $3,785.4 million for the nine months ended September 30, 2025 from $3,275.3 million for the nine months ended September 30, 2024. This increase was driven by a growth in volumes, which drove corresponding higher material and direct labor expenses, as well as increased other overhead costs directly related to the performance of aftermarket services, in addition to the cost of revenue attributable to the acquisition of Aero Turbine on August 23, 2024.

Previous wording

The following table sets forth our total cost of revenue for the six months ended June 30, 2025 and 2024:

Current wording

The following table sets forth our total cost of revenue for the nine months ended September 30, 2025 and 2024:

Previous wording

Selling, general and administrative expense. SG&A expense was $76.0 million and $56.2 million for the three months ended June 30, 2025 and 2024, respectively, and was 5.0% and 4.2% of revenue for the three months ended June 30, 2025 and 2024, respectively. The $19.8 million increase in SG&A expense was primarily due to a $7.5 million increase in personnel costs largely attributable to our transition to a public company, in addition to $3.8 million in stock compensation expense and a $3.5 million loss on disposals in the current period with no similar charges incurred in the prior year period, and a one time legal settlement in the prior year period with a benefit of $4.0 million.

Current wording

Selling, general and administrative expense. SG&A expense was $201.4 million and $171.7 million for the nine months ended September 30, 2025 and 2024, respectively, and was 4.5% and 4.5% of revenue for the nine months ended September 30, 2025 and 2024, respectively. The $29.7 million increase in SG&A expense was primarily due to $10.0 million in stock compensation expense with no similar charge incurred in the prior year period, a $9.8 million increase in personnel costs largely attributable to our transition to a public company, a $5.8 million increase in incentive compensation expense, and a $2.9 million loss on disposals in the current period with no similar charges incurred in the prior year period.

Previous wording

Amortization of intangible assets. Amortization of intangible assets was $48.9 million and $46.6 million for the six months ended June 30, 2025 and 2024, respectively. The increase of $2.3 million, or 5.0%, was primarily driven by the intangible assets allocated to customer relationships resulting from the Aero Turbine acquisition on August 23, 2024.

Current wording

Amortization of intangible assets. Amortization of intangible assets was $73.8 million and $70.6 million for the nine months ended September 30, 2025 and 2024, respectively. The increase of $3.3 million, or 4.6%, was primarily driven by the intangible assets allocated to customer relationships resulting from the Aero Turbine acquisition on August 23, 2024. During the nine months ended September 30, 2024, the cost base of customer relationships increased due to the Aero Turbine acquisition; however, this had minimal impact on total amortization expense due to the timing of the transaction.

Previous wording

Interest expense. Interest expense decreased $68.0 million, or 43.7%, from $155.6 million for the six months ended June 30, 2024 to $87.6 million for the six months ended June 30, 2025. This decrease in interest expense was largely driven by (i) the repayment of the Prior Senior Notes in full on October 3, 2024 concurrent with the Company’s IPO, and (ii) entrance into the New Credit Agreement on October 31, 2024 providing for the New 2024 Term Loan Facilities and the New 2024 Revolving Credit Facility and the use of the proceeds to repay in full amounts outstanding under the Prior Credit Agreement and the Prior ABL Credit Agreement, terminating each of the debt facilities thereunder, and, resulting in a weighted average interest rate of borrowings for the six months ended June 30, 2025 of 6.9% compared to 8.9% for the six months ended June 30, 2024. See “—Liquidity and Capital Resources” for further discussion of our debt and financing activities.

Current wording

Interest expense. Interest expense decreased $103.3 million, or 43.9%, from $235.5 million for the nine months ended September 30, 2024 to $132.2 million for the nine months ended September 30, 2025. This decrease in interest expense was largely driven by (i) the repayment of the Prior Senior Notes in full on October 3, 2024 concurrent with the Company’s IPO, and (ii) entrance into the New Credit Agreement on October 31, 2024 providing for the New 2024 Term Loan Facilities and the New 2024 Revolving Credit Facility and the use of the proceeds to repay in full amounts outstanding under the Prior Credit Agreement and the Prior ABL Credit Agreement, terminating each of the debt facilities thereunder, and, resulting in a weighted average interest rate of borrowings for the nine months ended September 30, 2025 of 6.9% compared to 8.9% for the nine months ended September 30, 2024. See “—Liquidity and Capital Resources” for further discussion of our debt and financing activities.

Previous wording

Refinancing costs. Refinancing costs of $4.9 million associated with the modified portion of the Prior Credit Agreement amendment were incurred during the six months ended June 30, 2024 with no similar charges incurred in the current year.

Current wording

Refinancing costs. Refinancing costs of $6.4 million associated with the modified portion of the Prior Credit Agreement amendments in March and September 2024 were incurred during the nine months ended September 30, 2024, with no similar charges incurred in the nine months ended September 30, 2025.

Previous wording

Loss on debt extinguishments. A $3.6 million loss on debt extinguishments was recorded during the six months ended June 30, 2024 due to the write-off of unamortized deferred finance charges and debt discount related to the extinguished portion of the Prior 2023 Term Loan Facilities and redeemed portion of the Prior Senior Notes related to the refinancing activity with no similar charges incurred in the current year.

Current wording

Loss on debt extinguishments. A $3.6 million loss on debt extinguishments was recorded during the nine months ended September 30, 2024 due to the write-off of unamortized deferred finance charges and debt discount related to the extinguished portion of the Prior 2023 Term Loan Facilities and redeemed portion of the Prior Senior Notes related to the refinancing activity, with no similar charges incurred in the nine months ended September 30, 2025.

Previous wording

Income tax expense. Income tax expense was $24.0 million for the three months ended June 30, 2025, as compared to $21.0 million for the three months ended June 30, 2024. This was an increase of $3.0 million, or 14.6%. This increase in tax expense was due to the mix of forecasted earnings, which in 2025 resulted in full year forecasted U.S. pre-tax income, as opposed to a U.S. forecasted pre-tax loss in 2024.The tax expense, and corresponding effective tax rates for the three months ended June 30, 2025 and 2024, were higher than the statutory rate of 21.0% primarily due to the Global Intangible Low-taxed Income (“GILTI”) provision which was enacted in 2017 as part of the Tax Cuts and Jobs Act. Further, for the three months ended June 30, 2024, the partial valuation allowance recorded against our interest expense carryforward deferred tax asset under Section 163(j) of the Internal Revenue Code also was a driver of the effective tax rate exceeding the statutory rate.

Current wording

Income tax expense. Income tax expense was $70.9 million for the nine months ended September 30, 2025, as compared to $38.1 million for the nine months ended September 30, 2024. This was an increase of $32.8 million, or 86.1%. This increase in tax expense was due primarily to the increase in the year to date pretax income which was $269.6 million at September 30, 2025 compared to $63.1 million at September 30, 2024, which is an increase of $206.5 million. The tax expense, and corresponding effective tax rates for the nine months ended September 30, 2025 and 2024, were higher than the statutory rate of 21.0% primarily due to the Global Intangible Low-taxed Income (“GILTI”) provision which was enacted in 2017 as part of the Tax Cuts and Jobs Act. Further, for the nine months ended September 30, 2024, the partial valuation allowance recorded against our interest expense carryforward deferred tax asset under Section 163(j) of the Internal Revenue Code also was a driver of the effective tax rate exceeding the statutory rate.

Previous wording

Includes unamortized discounts of $20.8 million and $22.5 million as of June 30, 2025 and December 31, 2024, respectively, and unamortized deferred finance charges of $14.6 million and $15.7 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

Includes unamortized discounts of $20.0 million and $22.5 million as of September 30, 2025 and December 31, 2024, respectively, and unamortized deferred finance charges of $14.0 million and $15.7 million as of September 30, 2025 and December 31, 2024, respectively.

Previous wording

Our principal historical cash requirements have been to fund working capital, capital expenditures and acquisitions and to service our indebtedness. As of June 30, 2025, we had $715.5 million of available liquidity, consisting of $91.5 million cash on hand and, $639.0 million available under the New 2024 Revolving Credit Facility. Based on our current operations, we believe that our current sources of liquidity, including cash on hand and the New 2024 Revolving Credit Facility, are adequate to meet our cash requirements for the foreseeable future. See Note 8, “Long-Term Debt” for further discussion of the New Credit Agreement and New Senior Secured Credit Facilities. However, our ability to make scheduled payments of principal and interest, refinance our debt, comply with the financial covenants under our debt agreements and fund our other liquidity requirements will depend on our ability to generate cash in the future, which is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. Any future acquisitions, joint ventures or other similar transactions may require additional capital and there can be no assurance that any such capital will be available to us on acceptable terms, if at all.

Current wording

Our principal historical cash requirements have been to fund working capital, capital expenditures and acquisitions and to service our indebtedness. As of September 30, 2025, we had $722.8 million of available liquidity, consisting of $97.5 million cash on hand and, $625.3 million available under the New 2024 Revolving Credit Facility. Based on our current operations, we believe that our current sources of liquidity, including cash on hand and the New 2024 Revolving Credit Facility, are adequate to meet our cash requirements for the foreseeable future. See Note 8, “Long-Term Debt” for further discussion of the New Credit Agreement and New Senior Secured Credit Facilities. However, our ability to make scheduled payments of principal and interest, refinance our debt, comply with the financial covenants under our debt agreements and fund our other liquidity requirements will depend on our ability to generate cash in the future, which is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. Any future acquisitions, joint ventures or other similar transactions may require additional capital and there can be no assurance that any such capital will be available to us on acceptable terms, if at all.

Previous wording

The New 2024 Term Loan Facilities under the New Credit Agreement, under which we had outstanding indebtedness in an aggregate principal amount of $2,238.8 million, maturing on October 31, 2031.

Current wording

The New 2024 Term Loan Facilities under the New Credit Agreement, under which we had outstanding indebtedness in an aggregate principal amount of $2,233.1 million, maturing on October 31, 2031.

Previous wording

The $750.0 million New 2024 Revolving Credit Facility under the New Credit Agreement, under which we had outstanding indebtedness of $95.0 million.

Current wording

The $750.0 million New 2024 Revolving Credit Facility under the New Credit Agreement, under which we had outstanding indebtedness of $110.0 million.

Previous wording

$20.2 million in finance leases and other debt.

Current wording

$19.7 million in finance leases and other debt.

Previous wording

The following table summarizes our cash flows for the six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our cash flows for the nine months ended September 30, 2025 and 2024:

Previous wording

Net cash used in operating activities for the six months ended June 30, 2025 was $21.1 million. The factors affecting our operating cash flows during the period included net income of $130.7 million and non-cash charges of $99.5 million, partially offset by a $251.3 million change in our operating assets and liabilities. The non-cash charges primarily consisted of $97.2 million in depreciation and amortization and $5.9 million in stock compensation expense, partially offset by a $11.6 million decrease in deferred income taxes. The increase in our net working capital was primarily due to the increase in trade working capital driven by continued growth in the business.

Current wording

Net cash used in operating activities for the nine months ended September 30, 2025 was $6.3 million. The factors affecting our operating cash flows during the period included net income of $198.8 million and non-cash charges of $162.9 million, partially offset by a $367.9 million change in our operating assets and liabilities. The non-cash charges primarily consisted of $145.3 million in depreciation and amortization, $10.0 million in stock compensation expense and $4.9 million in amortization of deferred finance charges and discounts, and $0.6 million of foreign exchange gain, partially offset by a $0.8 million decrease in deferred income taxes. The increase in our net working capital was primarily due to the increase in trade working capital driven by continued growth in the business.

Previous wording

Net cash used in investing activities for the six months ended June 30, 2025 of $72.4 million primarily consisted of $47.3 million of purchases of property, plant and equipment, rental engines and $30.0 million in payment of our licensing agreement acquired during the year ended December 2024.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2025 of $91.1 million primarily consisted of $66.7 million of purchases of property, plant and equipment, rental engines and $30.0 million in payment during the current period of our licensing agreement acquired during the year ended December 2024, partially offset by $4.3 million of proceeds from disposal of property, plant and equipment.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2025 of $81.7 million was primarily attributable to the proceeds from long-term debt of $345.0 million, offset by $261.8 million in repayments of long-term debt.

Current wording

Net cash provided by financing activities for the nine months ended September 30, 2025 of $90.9 million was primarily attributable to the proceeds from long-term debt of $545.0 million, offset by $452.6 million in repayments of long-term debt.

Previous wording

Net cash used in operating activities for the six months ended June 30, 2024 was $18.2 million. The factors affecting our operating cash flows during the period included net income of $8.6 million, offset by non-cash charges of $96.3 million and a $123.1 million change in our operating assets and liabilities. The non-cash charges primarily consisted of $92.9 million in depreciation and amortization and a $6.9 million decrease in deferred income taxes.

Current wording

Net cash used in operating activities for the nine months ended September 30, 2024 was $32.0 million. The factors affecting our operating cash flows during the period included net income of $25.0 million and non-cash charges of $145.2 million, offset by a $202.3 million change in our operating assets and liabilities. The non-cash charges primarily consisted of $140.0 million in depreciation and amortization, $10.0 million in amortization of deferred finance charges and discounts, $3.6 million loss on debt extinguishment and $1.4 million in non-cash lease expense, partially offset by $9.2 million decrease in deferred income taxes.

Previous wording

Net cash used in investing activities for the three months ended June 30, 2024 of $44.8 million primarily consisted of $45.1 million of purchases of property, plant and equipment and rental engines.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2024 of $184.1 million primarily due to cash of $114.1 million paid for the acquisition of Aero Turbine on August 23, 2024, $70.4 million of purchases of property, plant and equipment and rental engines.