•
Aug 31, 2024

AAR Corp Q1 2025 Earnings Report

AAR Corp's Q1 2025 earnings showcased significant revenue growth and profitability improvements.

Key Takeaways

AAR Corp reported a strong first quarter for fiscal year 2025, with consolidated sales of $661.7 million and net income of $18.0 million, or $0.50 per diluted share. This represents a 20% increase in sales compared to the prior year quarter. Adjusted diluted earnings per share were $0.85, compared to $0.78 in the prior year. The company saw growth in both commercial and government sectors, driven by organic growth and the acquisition of the Product Support business.

Consolidated sales increased by 20% compared to the prior year quarter.

Net income reached $18.0 million, or $0.50 per diluted share, a significant improvement from the prior year's net loss.

Adjusted diluted earnings per share increased to $0.85, up from $0.78 in the prior year.

Sales to both commercial and government customers increased by 20%.

Total Revenue
$662M
Previous year: $550M
+20.4%
EPS
$0.85
Previous year: $0.78
+9.0%
Gross Profit
$117M
Previous year: $101M
+15.7%
Cash and Equivalents
$63.1M
Previous year: $70.3M
-10.2%
Free Cash Flow
-$26.5M
Previous year: -$27.8M
-4.7%
Total Assets
$2.78B
Previous year: $1.95B
+42.4%

AAR Corp

AAR Corp

AAR Corp Revenue by Geographic Location

Forward Guidance

AAR Corp anticipates further margin expansion as they continue to drive growth in higher margin activities and fully integrate the Product Support business. Demand remains exceptionally strong for their services, and they expect continued growth across both commercial and government businesses.

Positive Outlook

  • Expect further margin expansion.
  • Driving growth in higher margin activities.
  • Fully integrating the Product Support business.
  • Demand remains exceptionally strong for our services.
  • Expect continued growth across both commercial and government businesses.