AAR Corp Q4 2023 Earnings Report
Key Takeaways
AAR Corp reported Q4 2023 consolidated sales of $553.3 million and income from continuing operations of $23.2 million, or $0.66 per diluted share. Adjusted diluted earnings per share were $0.83, compared to $0.72 in the prior year. Consolidated fourth quarter sales increased 16% over the prior year quarter.
Consolidated fourth quarter sales increased 16% over the prior year quarter.
Consolidated sales to commercial customers increased 31% over the prior year quarter, primarily due to further recovery in the commercial market.
Sales to commercial customers were 69% of consolidated sales, compared to 62% in the prior year quarter.
Gross profit margins were 19.5% in the current quarter, compared to 18.9% in the prior year quarter.
AAR Corp
AAR Corp
Forward Guidance
The company expects continued growth in its parts business due to increasing demand for used material and the full ramp-up of recent new parts distribution contract awards. Our hangars are expected to remain largely full throughout the year, and we are excited about the opportunities Trax provides to help further strengthen the AAR value proposition. Our new business pipeline across the commercial and government markets remains strong, and we believe we are well-positioned to continue our growth and margin expansion.
Positive Outlook
- Continued growth in parts business due to increasing demand for used material.
- Full ramp-up of recent new parts distribution contract awards.
- Hangars are expected to remain largely full throughout the year.
- Opportunities Trax provides to help further strengthen the AAR value proposition.
- New business pipeline across the commercial and government markets remains strong.