AAR Corp Q1 2023 Earnings Report
Key Takeaways
AAR Corp reported a decrease in consolidated sales by 2% compared to the prior year's quarter, but experienced a significant increase in income from continuing operations. The company saw strong commercial performance with sales to commercial customers increasing, while sales to government customers decreased due to the completion of certain programs.
Consolidated sales decreased 2% year-over-year.
Sales to commercial customers increased 10% year-over-year.
Sales to government customers decreased 19% year-over-year.
Gross profit margins increased to 18.4% from 14.2% in the prior year quarter.
AAR Corp
AAR Corp
Forward Guidance
AAR Corp is focused on securing new business and generating shareholder value through organic and inorganic investments, with a full pipeline of commercial and government opportunities.
Positive Outlook
- Strong commercial performance driven by new parts distribution contracts.
- Hangars remained largely full throughout the summer.
- Pipeline of both commercial and government opportunities remains full.
- Balance sheet strength to secure new business.
- Focus on generating shareholder value through organic and inorganic investments.
Challenges Ahead
- Government business saw the full impact of the wind down in Afghanistan.
- Completion of certain other government programs.
- Consolidated sales decreased 2% from the prior year’s quarter.
- Selling, general, and administrative expenses increased.
- Net interest expense increased.