Aerospace firm AAR Corp Q4 adjusted profit beats expectations

AAR

16/07/2025 21:17

Overview

AAR Corp fiscal Q4 sales rise 15% to $755 mln, beating expectations, per LSEG data

Adjusted EPS for fiscal Q4 beats analyst estimates,  per LSEG data

Co completed integration of Product Support acquisition, divested Landing Gear Overhaul business

Outlook

Company expects to gain market share in Parts Supply in fiscal 2026.

AAR Corp anticipates growth in Trax software business in fiscal 2026.

Company sees opportunities for margin improvement through efficiency initiatives.

AAR Corp plans to expand capabilities in Repair & Engineering in fiscal 2026.

Result Drivers

PARTS DISTRIBUTION - Over 20% organic sales growth driven by market growth and share gains, per CEO John M. Holmes

GOVERNMENT DEMAND - 21% increase in sales to government customers due to higher order volumes

PORTFOLIO OPTIMIZATION - Completed integration of Product Support acquisition and divested Landing Gear Overhaul business

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$754.50 mln
$695.70 mln (5 Analysts)
Q4 Adjusted EPS
Beat
$1.16
$1.01 (5 Analysts)
Q4 EPS
$0.95
Q4 Net Income
$34 mln
Q4 Credit Loss Provision
$500,000
Q4 Operating Income
$73 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for AAR Corp is $80.50, about 8.8% above its July 15 closing price of $73.39

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPnbyymKla

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)