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AAR Q3 Earnings Surpass Estimates, Sales Increase Year Over Year
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Key Takeaways
AAR reported Q3 EPS of $1.25, beating estimates and rising 26.3% year over year.
AIR sales rose 24.6% to $845.1M, driven by strong new parts distribution growth.
AAR saw Parts Supply surge 45%, while margins improved on higher volume and profitability.
AAR Corp. (AIR - Free Report) reported third-quarter fiscal 2026 adjusted earnings of $1.25 per share, which topped the Zacks Consensus Estimate of $1.21 by 3.3%. The bottom line also improved 26.3% from the year-ago quarter’s level of 99 cents.
The company reported GAAP earnings of $1.71 per share compared with a loss of 25 cents per share in the prior-year quarter.
The year-over-year improvement in the bottom line can be attributed to strong sales growth.
AIR’s Total Sales
In the quarter under review, AAR generated net sales of $845.1 million. The reported figure beat the Zacks Consensus Estimate of $807 million by 4.7%. The figure also increased 24.6% from $678.2 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the double-digit growth across new parts distribution within the company's Parts Supply segment.
In the fiscal third quarter, sales in the Parts Supply segment totaled $392.5 million, up 45% year over year.
Repair & Engineering reported sales of $265.3 million, up 22.9% from the prior-year period’s level.
Integrated Solutions sales amounted to $167.8 million, up 3% from the year-ago quarter’s reported number.
Expeditionary Services recorded sales of $19.5 million, down 32.1% year over year.
AIR’s Operational Update
AIR’s adjusted operating margin increased from 9.7% to 10.2%, driven by higher volume and profitability in new parts distribution activities.
Selling, general and administrative expenses amounted to $89.8 million compared with $61.3 million a year ago.
Net interest expenses for the quarter totaled $17.1 million compared with $18.1 million in the year-ago period.
Financial Details of AAR
As of Feb. 28, 2026, AAR’s cash and cash equivalents amounted to $78.5 million compared with $96.5 million as of May 31, 2025.
The company’s long-term debt totaled $888.3 million as of Feb. 28, 2026, up from $968 million as of May 31, 2025.
In the first nine months of fiscal 2026, net cash from operating activities was $74.7 million against the net cash used of $18.7 million in the year-ago period.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.
Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2025 adjusted EPS of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.
RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.
NOC’s total sales of $11.71 billion in the fourth quarter beat the consensus estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.
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AAR Q3 Earnings Surpass Estimates, Sales Increase Year Over Year
Key Takeaways
AAR Corp. (AIR - Free Report) reported third-quarter fiscal 2026 adjusted earnings of $1.25 per share, which topped the Zacks Consensus Estimate of $1.21 by 3.3%. The bottom line also improved 26.3% from the year-ago quarter’s level of 99 cents.
The company reported GAAP earnings of $1.71 per share compared with a loss of 25 cents per share in the prior-year quarter.
The year-over-year improvement in the bottom line can be attributed to strong sales growth.
AIR’s Total Sales
In the quarter under review, AAR generated net sales of $845.1 million. The reported figure beat the Zacks Consensus Estimate of $807 million by 4.7%. The figure also increased 24.6% from $678.2 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the double-digit growth across new parts distribution within the company's Parts Supply segment.
AAR Corp. Price, Consensus and EPS Surprise
AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote
AAR: Segment Details
In the fiscal third quarter, sales in the Parts Supply segment totaled $392.5 million, up 45% year over year.
Repair & Engineering reported sales of $265.3 million, up 22.9% from the prior-year period’s level.
Integrated Solutions sales amounted to $167.8 million, up 3% from the year-ago quarter’s reported number.
Expeditionary Services recorded sales of $19.5 million, down 32.1% year over year.
AIR’s Operational Update
AIR’s adjusted operating margin increased from 9.7% to 10.2%, driven by higher volume and profitability in new parts distribution activities.
Selling, general and administrative expenses amounted to $89.8 million compared with $61.3 million a year ago.
Net interest expenses for the quarter totaled $17.1 million compared with $18.1 million in the year-ago period.
Financial Details of AAR
As of Feb. 28, 2026, AAR’s cash and cash equivalents amounted to $78.5 million compared with $96.5 million as of May 31, 2025.
The company’s long-term debt totaled $888.3 million as of Feb. 28, 2026, up from $968 million as of May 31, 2025.
In the first nine months of fiscal 2026, net cash from operating activities was $74.7 million against the net cash used of $18.7 million in the year-ago period.
AIR’s Zacks Rank
AAR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.
Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2025 adjusted EPS of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.
RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.
NOC’s total sales of $11.71 billion in the fourth quarter beat the consensus estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.