AAR Q4 Earnings Surpass Estimates, Sales Increase Year Over Year

AAR Corp. (AIR) 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 SalesIn 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. QuoteAAR: Segment DetailsIn 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 UpdateAIR’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 AARAs 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 RankAAR 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 ReleasesOther companies from the same sector that will soon report their quarterly results are discussed below:RTX Corporation (RTX) 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) 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) 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%.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report AAR Corp. (AIR): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks