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May 31
AAR Corp Q4 2025 Earnings Report
AAR Corp reported strong revenue and earnings growth in Q4 2025.
Key Takeaways
AAR Corp delivered double-digit revenue and earnings growth in Q4 2025, driven by strong demand in parts distribution and government contracts. Operating and adjusted EBITDA margins expanded significantly, reflecting improved profitability.
Revenue rose 15% year-over-year to $754.5M
Net income surged to $34M from $9.1M last year
Adjusted EBITDA margin expanded to 12.4%
Strong parts distribution growth led the performance
AAR Corp
AAR Corp
AAR Corp Revenue by Segment
AAR Corp Revenue by Geographic Location
Revenue by Segment
Parts Supply Revenue
CapyFin.comRepair & Engineering Revenue
CapyFin.comIntegrated Solutions Revenue
CapyFin.comExpeditionary Services Revenue
CapyFin.comRevenue by Geographic Location
Government customers Revenue
CapyFin.com Forward Guidance
AAR expects to continue market share gains in Parts Supply and expand Repair & Engineering capabilities in fiscal 2026, while pursuing government contracts.
Positive Outlook
- Expecting further market share gains in Parts Supply
- Continued growth in Trax software adoption
- Expansion of Repair & Engineering capabilities
- Pipeline of government opportunities to convert to new contracts
- Strong balance sheet supporting growth investments
Challenges Ahead
- Integration risks with acquired businesses
- Potential fluctuations in government contract timing
- Dependence on continued demand in commercial aviation
- Execution risks in efficiency and margin expansion initiatives
- Exposure to economic cycles affecting aviation aftermarket
Revenue & Expenses
Visualization of income flow from segment revenue to net income