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Standard Aero ୭ SECOND QUARTER 2026 EARNINGS PRESENTATION AUGUST 6TH , 2026
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2 DISCLAIMER – FORWARD LOOKING STATEMENTS & NON-GAAP DISCLOSURE This presentation 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 throughoutthis presentation 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 presentation 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 competitionin 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 United States tariff and import/exportregulations; 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 indebtedness; our success at managing the risksof 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 presentation 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 andrapidly 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 ofoperations. 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 presentation, 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 presentation. 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. This presentation 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, Adjusted Net Income, Adjusted Diluted Earnings Per Share (“Adjusted Diluted EPS”), Net Debt to Adjusted EBITDA, Free Cash Flow and Adjusted 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 presentation are supplemental measures of our performance, in the case of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS, that we believe help investorsunderstand our financial condition and operating results and assess our future prospects. We believe these non-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, Free Cash Flow and Adjusted 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 asone 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 Diluted EPS as Adjusted Net Income, which excludes amortization of intangible assets and the corresponding tax effect, divided by the Total Diluted Shares Outstanding. This Adjusted Diluted EPS definition was recast in Q2 2026 to exclude amortization of all intangible assets. We believe that Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted 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 cash flows less capital expenditures. We define Adjusted Free Cash Flow as Free Cash Flow excluding the acquisition of intangible assets. 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 fromor 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 presentation and should not rely on any single financial measure to evaluate ourbusiness. We have presented forward-looking statements regarding Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS and Adjusted Free Cash Flow. 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 this 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, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Adjusted Free Cash Flow to its most directly comparable forward-looking GAAP financial measure because such information is not available, and management cannot reliably predict 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 the company's actual results and forward looking Non-GAAP financial data set forth in this presentation may be material.
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3 $2,965 $3,227 1H 2026 $403 $433 1H 2025 1H 2026 $1,529 $1,600 Q2 2025 Q2 2026 Q2 2026 $205 $230 +7.5% YoY FINANCIAL HIGHLIGHTS +12.3% YoY Note: $ in millions 1) These are non-GAAP financial measures, see appendix. 2) Includes effect from the previously disclosed elimination of low-to-no margin passthrough revenue. Excluding this effect commercial aerospace revenues grew mid-teens YoY. +4.6% YoY 13.4% 14.4% Revenue Adj. EBITDA 1 X% Adj. EBITDA Margin 1 +8.8% YoY 13.6% 13.4%+100 bps YoY (20) bps YoY + Double-digit Adjusted EBITDA growth driven by continued strong demand in Commercial and BusAv platforms, and pricing + Learning curve on growth programs; Reached profitability on LEAP and CFM56 DFW programs in Q2 + 24% Adjusted Diluted EPS growth driven by operational earnings growth and share count − Mix due to delays on certain Military platforms Q2 PERFORMANCE DRIVERS End Market Growth + Commercial Aerospace: +6% YoY2 + Business Aviation: +6% YoY − Military & Helicopter: -3% YoY Earnings Growth
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4 $6.375 – $6.50Bn Revenue 2026 STRATEGIC PRIORITIES AND OUTLOOK STRATEGIC PRIORITIES LEAP CFM56 & CF34 Component Repair Note: $ in millions 1) These are non-GAAP financial measures; See appendix and disclaimer 2) Adjusted Diluted EPS was recast in Q2 2026 to exclude amortization of all intangible assets. See appendix for more information 3) Introduced Adjusted Free Cash Flow metric in guidance that replaces previous Free Cash Flow guidance as of Q2 2026. Adjusted Free Cash Flow is Free Cash Flow excluding the Acquisition of Intangible Assets, such as OEM License expansions Continued new repair development across portfolio; Closed Unified Turbines acquisition CFM56 DFW reached profitability in Q2; Winnipeg expansion on track for completion in 2H Achieved profitability in Q2, while continuing to ramp and win new awards Execute CI and pricing opportunities across the portfolio to enhance productivity and drive margin improvement Capital Deployment WELL-DEFINED STRATEGIC PATH TO DOUBLE-DIGIT ADJUSTED EBITDA AND EPS GROWTH • Signed significant license expansion growing engine portfolio with key OEM; Expected to ramp to an incremental $25M Adj EBITDA/ year at margins accretive to company average • $100M shares repurchased YTD including $40M share repurchase completed in Q2 $885 – $910M Adjusted EBITDA1 $1.50 – $1.57 Adjusted Diluted EPS2 RAISING 2026 GUIDANCE Continuous Improvement Executing CI and pricing opportunities across the portfolio $270 – $300M Adjusted Free Cash Flow3
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5 Q2 2026 RESULTS – CONSOLIDATED ($ in millions) Q2 2026 Performance Commentary Revenue % Change YoY $1,600 +4.6% ◼ Engine Services growth of +4% YoY; Component Repair growth of +9% YoY ◼ Commercial Aerospace (+6% YoY)2, Business Aviation (+6% YoY), and Military & Helicopter (- 3% YoY) ◼ YoY Growth rate impacted by elimination of low-to-no margin material pass-through revenue Adjusted EBITDA1 % Change YoY $230 +12.3% ◼ Growth driven by higher volumes and productivity Adjusted EBITDA % Margin1 ∆ bps 14.4% +100 bps ◼ ES Margins increased by productivity gains and reduction of pass-through revenues ◼ Component Repair Services negatively impacted by mix Net Income % Change YoY $97 +43.7% ◼ Higher earnings from operations ◼ Lower interest expense and tax rate Adjusted Diluted EPS % Change YoY $0.40 +24% ◼ Higher earnings from operations ◼ Lower share count as a result of share repurchases Free Cash Flow1 $50 ◼ Higher earnings from operations ◼ Improved working capital efficiency driven by supply chain initiatives 1) These are non-GAAP financial measures; See appendix 2. Includes effect from the previously disclosed elimination of low-to-no margin passthrough revenue. Excluding this effect commercial aerospace revenues grew mid-teens YoY.
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6 $2,619 $2,852 1H 2025 1H 2026 1H 2026 $353 $383 $1,351 $1,405 Q2 2025 Q2 2026 Q2 2026 $179 $204 SECOND QUARTER 2026 RESULTS – ENGINE SERVICES Note: $ in millions 1) These are non-GAAP financial measures, see appendix. +4.0% YoY 13.2% 14.5% Revenue Adj. EBITDA 1 X% Adj. EBITDA Margin 1 13.5% 13.4%+130 bps YoY (10) bps YoY QUARTERLY HIGHLIGHTS ◼ +4% YoY Revenue growth + Growth across all three major end markets + Continued ramp on growth platforms − Elimination of material pass-through revenue ◼ +14.4% YoY Segment Adjusted EBITDA growth and +130 bps margin expansion + Volume and price growth + Productivity on growth programs as LEAP and CFM56 DFW reached profitability in Q2 + Margin accretion from elimination of low-to-no margin material pass-through revenue +14.4% YoY +8.6% YoY +8.9% YoY
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7 $178 $195 Q2 2025 Q2 2026 Q2 2026 $52 $51 SECOND QUARTER 2026 RESULTS – COMPONENT REPAIR SERVICES Note: $ in millions 1) These are non-GAAP financial measures, see appendix. Revenue Adj. EBITDA 1 X% Adj. EBITDA Margin 1 $346 $374 1H 2025 1H 2026 1H 2026 $99 $104 28.7% 27.7%(100) bps YoY +9.2% YoY 29.0% 26.3%(270) bps YoY ◼ +9.2% YoY Revenue growth + Strong commercial aerospace growth driven by CFM56, GTF and CF34 + Continued strong growth for aeroderivative repairs − Lower volumes on select military programs ◼ (0.9)% YoY Segment Adjusted EBITDA and (270) bps YoY margin ‒ Cost associated with moving repair work to other sites to increase capacity ‒ New labor ramp ‒ Negative mix from timing on select military platforms QUARTERLY HIGHLIGHTS (0.9)% YoY +8.3% YoY +4.6% YoY
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8 FREE CASH FLOW 1) These are non-GAAP financial measures, see appendix. 2) Excludes accrued interest and tax liabilities captured in Cash Interest and Cash Taxes. 3) Introduced Adjusted Free Cash Flow metric in guidance that replaces previous Free Cash Flow guidance as of Q2 2026. Adjusted Free Cash Flow is Free Cash Flow excluding the Acquisition of Intangible Assets, such as OEM License expansions. Q2 2026 Adjusted EBITDA 1 $230 (+/-) Δ in Net Working Capital 2 (56) (-) Capex: Excluding Major Growth Investments (15) (-) Capex: Major Growth Investment (7) (-) Non-recurring Items (8) (-) Cash Interest (40) (-) Cash Taxes (54) Free Cash Flow 1 $50 COMMENTARY ◼ Winnipeg expansion, LEAP and CFM56 DFW ◼ $4M Business Transformation costs 2026 Adj. FCF guidance of +$270M to +$300M3 ($ in millions) ◼ +$50M of free cash flow generation in Q2, driven by earnings ◼ Lower working capital build resulting from company-wide supply chain initiatives taking hold ◼ $4M Professional Services / Other
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9 BALANCE SHEET & LIQUIDITY NET DEBT TO ADJUSTED EBITDA LEVERAGE RATIO1 STRONG BALANCE SHEET WITH CAPITAL DEPLOYMENT FLEXIBILITY ◼ Net Leverage of 2.6x, down from 3.0x in Q2 2025 ◼ Capital Deployment: − Q2 closing of Unified Turbines acquisition − Repurchased $40M in shares in Q2 2026; YTD $100M ◼ Net Leverage remains within target range of 2-3x ◼ Rating upgrades by Moody’s and S&P in Q2 − Moody’s to Ba2 − S&P to BB Strong Balance Sheet Provides Capital Deployment Flexibility Focused on Long-Term Shareholder Returns 1) These are non-GAAP financial measures, see appendix. 2Q 2025 2Q 2026 2.6x 3.0x
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10 FY 2026 COMPANY & SEGMENT OUTLOOK Note: $ in millions 1) This is a non-GAAP financial measures -- See appendix 2. Adjusted EPS was recast in Q2 2026 to exclude amortization of all intangible assets. See appendix for more information 3. Introduced Adjusted Free Cash Flow metric in guidance that replaces previous Free Cash Flow guidance as of Q2 2026. Adjusted Free Cash Flow is Free Cash Flow excluding the Acquisition of Intangible Assets, such as OEM License expansions 4. Excludes the effect of the elimination of pass-through revenue in Engine Services segment. +LDD – Mid-Teens 4 Growth YoY +LDD Growth YoY +HSD - LDD Growth YoY COMMERCIAL AEROSPACE BUSINESS AVIATION MILITARY & HELICOPTERS ($ in millions) FY 2026 Commentary Revenue % Change YoY $6,375 – $6,500 +5% to +7% ◼ Engine Services: $5,600 – $5,700 (increase) • Includes elimination of $300-400M of low-to-no margin material pass-through revenue ◼ Component Repair Services: $775 – $800 Adjusted EBITDA1 % Change YoY $885 – $910 +10% to +13% ◼ Engine Services: $770 – $785 (increase) ◼ Component Repair Services: $220 – $230 ◼ Corporate Expenses of ~$105 Adjusted Diluted EPS1,2 % Change YoY $1.50 – $1.57 +18% to +24% ◼ Interest Expense of $150 – $160 (increase) ◼ Adjusted Effective Tax Rate of 23.5% – 25.5% (decrease) ◼ Weighted Avg Diluted Shares Outstanding ~332.5M (decrease) Adjusted Free Cash Flow 1,3 % Change YoY $270 – $300 +29% to +44% ◼ CapEx of $100 – $110
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11 APPENDIX
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12 RECONCILIATION OF NON-GAAP FINANCIAL METRICS ADJUSTED EBITDA AND ADJUSTMENTS WALK Note: Figures may not sum due to rounding 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 transaction costs incurred in connection with completed acquisitions, including legal and professional fees, debt arrangement fees and other third-party costs. 4) 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.. Three Months Ended June 30, 2026 2025 (in millions, except percentages) Net income $97.3 $67.7 Income tax expense 29.9 24.0 Depreciation and amortization 47.0 48.5 Interest expense 41.3 43.8 Business transformation costs (LEAP and CFM) (1) 3.7 5.3 Non-cash stock compensation expense 6.3 3.8 Integration costs and severance (2) --- 1.4 Secondary offering costs (3) --- 3.9 Other (4) 4.4 6.2 Adjusted EBITDA $229.9 $204.6 Revenue $1,599.7 $1,528.9 Net income margin 6.1% 4.4% Adjusted EBITDA Margin 14.4% 13.4%
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13 RECONCILIATION OF NON-GAAP FINANCIAL METRICS ADJUSTED DILUTED EPS AND ADJUSTMENTS WALK Note: Figures may not sum due to rounding Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 $ EPS $ EPS (in millions, except per share data) (in millions, except per share data) Net income/Diluted EPS $67.8 $0.20 $130.7 $0.39 Business transformation costs (LEAP and CFM) 5.3 0.02 18.2 0.05 Stock compensation 3.9 0.01 3.9 0.01 Integration costs and severance 1.3 0.00 2.7 0.01 Secondary offering costs 3.9 0.01 3.9 0.01 Professional service fees and other 6.2 0.02 10.5 0.03 One-offs included in adjusted EBITDA add-back 20.6 0.06 41.2 0.12 Amortization of intangible assets (1) 32.7 0.10 65.0 0.19 Tax adjustment (13.0) (0.04) (25.9) (0.08) Adjusted Net Income / Adjusted Diluted EPS $108.1 $0.32 $211.0 $0.63 1) Effective Q2 2026, the Company updated its definition of Adjusted Diluted EPS to broaden the existing exclusion of amortization of acquired intangible assets to also exclude the non-cash amortization of all intangible assets, including intangible assets associated with licenses. Management believes that excluding this item provides investors with a more useful baseline for evaluating core operating performance, as these non-cash charges—whether arising from acquisition accounting or license-related intangible investments—do not reflect the Company’s ongoing operations and facilitate more consistent comparison of results across periods regardless of how the Company has chosen to deploy capital, and will provide further comparability to StandardAero’s peers. Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 $ EPS $ EPS (in millions, except per share data) (in millions, except per share data) Net income/Diluted EPS $97.3 $0.29 177.2 $0.53 Business transformation costs (LEAP and CFM) 3.7 0.01 10.3 0.03 Stock compensation 6.2 0.02 9.7 0.03 Integration costs and severance 0.4 0.00 0.7 0.00 Secondary offering costs --- --- 1.3 0.00 Professional service fees and other 4.1 0.01 5.9 0.02 One-offs included in adjusted EBITDA add-back 14.4 0.04 27.9 0.08 Amortization of intangible assets (1) 32.6 0.10 64.9 0.19 Tax adjustment (11.3) (0.03) (22.1) (0.07) Adjusted Net Income / Adjusted Diluted EPS $133.0 $0.40 $247.9 $0.74
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14 SEGMENT DISCLOSURE SEGMENT ADJUSTED EBITDA Three Months Ended June 30, 2026 2025 (in millions, except percentages) Engine Services Segment Revenue $1,405.1 $1,350.7 Segment Adjusted EBITDA $204.2 $178.5 Segment Adjusted EBITDA Margin 14.5% 13.2% Component Repair Services Segment Revenue $194.6 $178.3 Segment Adjusted EBITDA $51.2 $51.6 Segment Adjusted EBITDA Margin 26.3% 29.0% Note: Figures may not sum due to rounding
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15 SEGMENT DISCLOSURE (CONTINUED) SEGMENT REVENUE AND SEGMENT ADJUSTED EBITDA TO PROFIT BEFORE TAX WALK Note: Figures may not sum due to rounding 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 Resou rces, Legal, Finance, Marketing, Supply Chain, Engineering and Quality, which benefit the enterprise as a whole. These costs are primarily related to the general man agement of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segmen ts, 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 our 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 bre akage 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 payab le to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associate d 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. Note: Figures may not sum due to rounding 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, Supply Chain, Engineering and Quality, 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 our 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 June 30, 2026 Engine Services Component Repair Services Total Segments (In thousands) Revenue from external customers $1,424,678 $175,015 $1,599,693 Intersegment revenue (19,594) 19,594 --- Total segment revenue 1,405,084 194,609 1,599,693 Other segment items (1) 1,200,871 143,411 1,344,282 Segment Adjusted EBITDA $204,213 $51,198 $255,411 Corporate (2) 25,534 Depreciation and amortization 47,043 Interest expense 41,279 Business transformation costs (LEAP and CFM) (3) 3,698 Non-cash stock compensation expense 6,267 Integration costs and severance (4) 346 Other (5) 4,040 Profit before tax $127,204 Three Months Ended June 30, 2025 Engine Services Component Repair Services Total Segments (In thousands) Revenue from external customers $1,373,701 $155,242 $1,528,943 Intersegment revenue (23,024) 23,024 --- Total segment revenue 1,350,677 178,266 1,528,943 Other segment items (1) 1,172,168 126,626 1,298,794 Segment Adjusted EBITDA $178,509 $51,640 $230,149 Corporate (2) 25,512 Depreciation and amortization 48,547 Interest expense 43,835 Business transformation costs (LEAP and CFM) (3) 5,264 Non-cash stock compensation expense 3,830 Integration costs and severance (4) 1,360 Other (5) 10,066 Profit before tax $91,735
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16 RECONCILIATION OF NET DEBT AND NET DEBT TO ADJUSTED EBITDA LEVERAGE RATIO Three Months Ended June 30, 2026 2025 (in millions, except percentages) 2024 Term Loan Facilities $2,216.3 $2,238.8 2024 Revolving Credit Facility 120.0 95.0 Finance leases 17.8 19.1 Other 1.0 1.1 Total Funded Debt $2,355.1 $2,354.0 Less Cash 179.1 91.5 Net Debt $2,176.0 $2,262.5 LTM EBITDA $838.4 $757.4 Net Debt to Adjusted EBITDA 2.6x 3.0x
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17 FREE CASH FLOW DISCLOSURE RECONCILIATION OF FREE CASH FLOW Three Months Ended June 30, 2026 2025 (in millions) Cash Flow from Operations $72.3 $2.9 Purchase of Property, Plant and Equipment (21.0) (22.0) Purchase of Intangible Assets (0.5) (15.0) Proceeds from Disposal of Property, Plant and Equipment (0.6) 3.3 (-) Total Capital Expenditures (22.1) (33.6) Free Cash Flow $50.2 $(30.7)