We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AAR Q4 Earnings Surpass Estimates, Sales Increase Year Over Year
Read MoreHide Full Article
Key Takeaways
AIR's Q4 adjusted EPS rose 31.8% to $1.16, beating estimates by 16%.
Q4 sales grew 14.9% year over year to $754.5M, surpassing consensus by 9.2%.
Segment gains and lower SG&A drove a margin rise from 9.7% to 10.5%.
AAR Corp. ((AIR - Free Report) ) reported fourth-quarter fiscal 2025 adjusted earnings of $1.16 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 16%. The bottom line also improved 31.8% from the year-ago quarter’s level of 88 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The company reported GAAP earnings of 95 cents per share compared with 26 cents in the prior-year quarter.
The year-over-year improvement in the bottom line can be attributed to strong sales growth and lower selling, general and administrative charges.
The company reported fiscal 2025 adjusted earnings of $3.91 per share, which were higher than the year-ago figure of $3.33 on account of improved operating efficiency. The full-year bottom line also surpassed the Zacks Consensus Estimate of $3.75 per share.
AIR’s Total Sales
In the quarter under review, AAR generated net sales of $754.5 million. The reported figure surpassed the Zacks Consensus Estimate of $691 million by 9.2%. The figure also increased 14.9% from $656.5 million recorded in the year-ago quarter.
The company reported total revenues of $2.78 billion in fiscal 2025, which were higher than $2.32 billion in fiscal 2024. The full-year top line also surpassed the Zacks Consensus Estimate of $2.72 billion.
Other companies from the same sector that will soon report their quarterly results are discussed below:
RTX Corporation ((RTX - Free Report) ) will report its second-quarter 2025 results on July 22, before market open. The Zacks Consensus Estimate for RTX’s earnings is $1.45 per share, indicating year-over-year growth of 2.8%.
The consensus estimate for its sales is pegged at $20.66 billion, indicating year-over-year growth of 4.8%.
Northrop Grumman Corporation ((NOC - Free Report) ) will report its second-quarter 2025 results on July 22, before market open. The Zacks Consensus Estimate for NOC’s earnings is pegged at $6.70 per share, indicating year-over-year growth of 5.4%.
The consensus estimate for sales is pegged at $10.11 billion, indicating year-over-year decline of 1.1%.
Textron Inc. ((TXT - Free Report) ) will report its second-quarter 2025 results on July 24, before market open. The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.44 per share, indicating year-over-year decline of 6.5%.
The consensus estimate for its sales is pegged at $3.60 billion, indicating year-over-year growth of 2.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AAR Q4 Earnings Surpass Estimates, Sales Increase Year Over Year
Key Takeaways
AAR Corp. ((AIR - Free Report) ) reported fourth-quarter fiscal 2025 adjusted earnings of $1.16 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 16%. The bottom line also improved 31.8% from the year-ago quarter’s level of 88 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The company reported GAAP earnings of 95 cents per share compared with 26 cents in the prior-year quarter.
The year-over-year improvement in the bottom line can be attributed to strong sales growth and lower selling, general and administrative charges.
The company reported fiscal 2025 adjusted earnings of $3.91 per share, which were higher than the year-ago figure of $3.33 on account of improved operating efficiency. The full-year bottom line also surpassed the Zacks Consensus Estimate of $3.75 per share.
AIR’s Total Sales
In the quarter under review, AAR generated net sales of $754.5 million. The reported figure surpassed the Zacks Consensus Estimate of $691 million by 9.2%. The figure also increased 14.9% from $656.5 million recorded in the year-ago quarter.
The company reported total revenues of $2.78 billion in fiscal 2025, which were higher than $2.32 billion in fiscal 2024. The full-year top line also surpassed the Zacks Consensus Estimate of $2.72 billion.
AAR Corp. Price, Consensus and EPS Surprise
AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote
AAR: Segment Details
In the fiscal fourth quarter, sales in the Parts Supply segment totaled $305.5 million, up 17.4% year over year.
Repair & engineering reported sales of $222.6 million, up 2.9% from the prior-year period’s level.
Integrated solutions sales amounted to $200.1 million, up 22.4% from the year-ago quarter’s reported number.
Expeditionary Services recorded sales of $26.3 million, up 61.3% year over year.
AIR’s Operational Update
AIR’s adjusted operating margin increased from 9.3% to 10.5%, driven by strong growth and favorable mix in the Parts Supply segment.
Selling, general and administrative expenses amounted to $77.4 million compared with $94.8 million a year ago.
Net interest expenses for the quarter totaled $18.4 million compared with $18.7 million in the year-ago period.
Financial Details of AAR
As of May 31, 2025, AAR’s cash and cash equivalents amounted to $96.5 million compared with $85.8 million as of May 31, 2024.
The company’s long-term debt totaled $968 million as of May 31, 2025, down from $985.4 million as of May 31, 2024.
In fiscal 2025, net cash provided from operating activities was $36.1 million compared with net cash flow of $43.6 million in the year-ago period.
AIR’s Zacks Rank
AAR currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Defense Releases
Other companies from the same sector that will soon report their quarterly results are discussed below:
RTX Corporation ((RTX - Free Report) ) will report its second-quarter 2025 results on July 22, before market open. The Zacks Consensus Estimate for RTX’s earnings is $1.45 per share, indicating year-over-year growth of 2.8%.
The consensus estimate for its sales is pegged at $20.66 billion, indicating year-over-year growth of 4.8%.
Northrop Grumman Corporation ((NOC - Free Report) ) will report its second-quarter 2025 results on July 22, before market open. The Zacks Consensus Estimate for NOC’s earnings is pegged at $6.70 per share, indicating year-over-year growth of 5.4%.
The consensus estimate for sales is pegged at $10.11 billion, indicating year-over-year decline of 1.1%.
Textron Inc. ((TXT - Free Report) ) will report its second-quarter 2025 results on July 24, before market open. The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.44 per share, indicating year-over-year decline of 6.5%.
The consensus estimate for its sales is pegged at $3.60 billion, indicating year-over-year growth of 2.2%.