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Feb 28, 2022
AAR Corp Q3 2022 Earnings Report
Reported third quarter fiscal year 2022 results with increased consolidated sales and income from continuing operations.
Key Takeaways
AAR Corp reported a 10% increase in consolidated sales to $452.2 million and income from continuing operations of $22.6 million, or $0.63 per diluted share, for the third quarter of Fiscal Year 2022. Adjusted diluted earnings per share were $0.63 compared to $0.37 in the prior year. Consolidated sales to commercial customers increased 28%, while sales to government customers decreased 8%.
Consolidated third quarter sales increased 10% over the prior year quarter.
Consolidated sales to commercial customers increased 28% due to the recovery in the commercial market.
Consolidated sales to government customers decreased 8% primarily related to program activity and delays in pallet orders.
Adjusted operating margin increased from 5.0% to 6.7% due to improved operating efficiency and the recovery in commercial sales.
AAR Corp
AAR Corp
AAR Corp Revenue by Geographic Location
Revenue by Geographic Location
Government customers Revenue
CapyFin.com Forward Guidance
The company expects continued margin improvement as the industry recovers, driven by actions taken early in the pandemic. They anticipate a continued recovery in commercial sales and expect their improved operating performance and strong balance sheet to generate shareholder value.
Positive Outlook
- Optimism about the recovering demand for business and leisure travel
- Expectation that this momentum will continue
- Continued actions to better position the company for margin improvement as the industry recovers
- Expectation of seeing a continued recovery in commercial sales
- Expectation that improved operating performance combined with the strength of the balance sheet will allow the company to continue to generate shareholder value
Challenges Ahead
- Factors that adversely affect the commercial aviation industry
- The continued impact of the COVID-19 pandemic on air travel, worldwide commercial activity and our and our customers’ ability to source parts and components
- A reduction in the level of sales to the branches, agencies and departments of the U.S. government and their contractors
- Cost overruns and losses on fixed-price contracts
- Nonperformance by subcontractors or suppliers