•
Feb 29, 2024

AAR Corp Q3 2024 Earnings Report

AAR Corp reported Q3 2024 earnings with increased consolidated sales and adjusted diluted earnings per share.

Key Takeaways

AAR CORP. reported a 9% increase in consolidated sales, reaching $567.3 million, and income from continuing operations of $14.0 million, or $0.39 per diluted share. Adjusted diluted earnings per share from continuing operations were $0.85, compared to $0.75 in the prior year. The company completed the acquisition of Triumph Group’s Product Support business on March 1, 2024.

Consolidated third quarter sales increased 9% over the prior year quarter.

Sales to commercial customers increased 18% and represented 70% of consolidated sales.

Gross profit margin increased to 19.4% from 18.1% due to operating efficiency on increased sales volumes.

Completed the acquisition of Triumph Group’s Product Support business for $725 million.

Total Revenue
$567M
Previous year: $521M
+8.9%
EPS
$0.85
Previous year: $0.75
+13.3%
Government Sales %
30%
Gross Profit
$110M
0
Cash and Equivalents
$83.6M
0
Free Cash Flow
$14.6M
0
Total Assets
$2.02B
Previous year: $1.67B
+20.8%

AAR Corp

AAR Corp

AAR Corp Revenue by Segment

AAR Corp Revenue by Geographic Location

Forward Guidance

AAR CORP. expects the acquisition of the Product Support business to accelerate their growth trajectory and will leverage their leadership positions to drive greater value for customers and shareholders. The company will maintain focus on cash generation and portfolio optimization to maintain a strong balance sheet for organic and inorganic investments.

Positive Outlook

  • Acquisition of Product Support business expected to accelerate growth.
  • Leveraging leadership positions in USM, new parts distribution, airframe MRO, and component repair services.
  • Focus on cash generation.
  • Focus on portfolio optimization.
  • Maintaining a strong balance sheet.

Revenue & Expenses

Visualization of income flow from segment revenue to net income