Parsons vs StandardAero
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KIRA’s take AI analyst
I put Parsons and StandardAero side by side, using each one’s latest annual report. Here is what stands out:
- Parsons is the larger business, with $6.4B of revenue in fiscal 2025 against $6.1B for StandardAero.
- StandardAero grew revenue faster (15.8%, against −5.7%).
- StandardAero kept more of each dollar of sales as operating profit (9.1% operating margin, against 6.6%).
- Parsons turned more of its sales into free cash flow (6.5% FCF margin, against 3.9%).
- Parsons earned a higher return on the capital invested in it (9.8%, against 8.9%).
- Investors pay more for each dollar of Parsons’s earnings: a P/E of 23.9x against 23.1x for StandardAero.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Parsons
PSN
5/10
Gross marginFCF marginReturn on capitalNet debt / EBITDAShare count change
StandardAero
SARO
5/10
Revenue growthOperating marginNet marginReturn on equityPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | PSN FY25 | SARO FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.4B | $7.5B |
| Revenue | $6.4B | $6.1B |
| Free cash flow | $410M | $234M |
| Net income | $241M | $277M |
| Growth | ||
| Revenue growth | −5.7% | 15.8% |
| 5-year growth | 10.2% | — |
| Share count change | −2.2% | 15.4% |
| Profitability | ||
| Gross margin | 22.5% | 14.8% |
| Operating margin | 6.6% | 9.1% |
| Net margin | 3.8% | 4.6% |
| FCF margin | 6.5% | 3.9% |
| Return on capital | 9.8% | 8.9% |
| Return on equity | 9.5% | 11.0% |
| Balance sheet | ||
| Net debt | $781M | $1.9B |
| Net debt / EBITDA | 1.5x | 2.6x |
| Dividends and buybacks | $125M | $0.0M |
| Valuation & quality | ||
| P/E | 23.9x | 23.1x |
| Piotroski F-score | 7 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.