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Nov 30, 2024
AAR Corp Q2 2025 Earnings Report
AAR Corp reported record sales and improved margins.
Key Takeaways
AAR Corp's second quarter fiscal year 2025 saw a 26% increase in sales to $686.1 million. However, the company reported a net loss of $30.6 million, or $0.87 per share, due to after-tax charges of $57.1 million associated with the FCPA settlement and related costs. Adjusted diluted earnings per share were $0.90, compared to $0.81 in the same quarter last year.
Sales grew 26%, underpinned by strong organic growth of 12%.
Sales in Repair & Engineering grew 57% year-over-year.
Adjusted EBITDA margins increased to 11.4% from 10.1% in the prior year quarter.
New distribution agreements were signed with Chromalloy and Whippany Actuation Systems.
Revenue by Geographic Location
Forward Guidance
AAR anticipates continued strong sales growth and further margin expansion in the second half of fiscal year 2025. These margins should improve even further in fiscal year 2026.
Positive Outlook
- Continued strong sales growth in the second half of fiscal year 2025.
- Further margin expansion in the same period.
- Benefits from continued growth in Parts Supply.
- Synergies from the Product Support acquisition.
- Completion of recently announced divestiture.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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