Latest news with #AARCorp
Yahoo
5 days ago
- Business
- Yahoo
AAR (AIR) Down 9.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for AAR (AIR). Shares have lost about 9.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is AAR due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for AAR Corp. before we dive into how investors and analysts have reacted as of late. AAR Q4 Earnings Surpass Estimates, Sales Increase Year Over Year AAR Corp. reported fourth-quarter fiscal 2025 adjusted earnings of $1.16 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 16%. The bottom line also improved 31.8% from the year-ago quarter's level of 88 cents per share. The company reported GAAP earnings of 95 cents per share compared with 26 cents in the prior-year quarter. The year-over-year improvement in the bottom line can be attributed to strong sales growth and lower selling, general and administrative charges. The company reported fiscal 2025 adjusted earnings of $3.91 per share, which were higher than the year-ago figure of $3.33 on account of improved operating efficiency. The full-year bottom line also surpassed the Zacks Consensus Estimate of $3.75 per share. AIR's Total Sales In the quarter under review, AAR generated net sales of $754.5 million. The reported figure surpassed the Zacks Consensus Estimate of $691 million by 9.2%. The figure also increased 14.9% from $656.5 million recorded in the year-ago quarter. The company reported total revenues of $2.78 billion in fiscal 2025, which were higher than $2.32 billion in fiscal 2024. The full-year top line also surpassed the Zacks Consensus Estimate of $2.72 billion. AAR: Segment Details In the fiscal fourth quarter, sales in the Parts Supply segment totaled $305.5 million, up 17.4% year over year. Repair & engineering reported sales of $222.6 million, up 2.9% from the prior-year period's level. Integrated solutions sales amounted to $200.1 million, up 22.4% from the year-ago quarter's reported number. Expeditionary Services recorded sales of $26.3 million, up 61.3% year over year. AIR's Operational Update AIR's adjusted operating margin increased from 9.3% to 10.5%, driven by strong growth and favorable mix in the Parts Supply segment. Selling, general and administrative expenses amounted to $77.4 million compared with $94.8 million a year ago. Net interest expenses for the quarter totaled $18.4 million compared with $18.7 million in the year-ago period. Financial Details of AAR As of May 31, 2025, AAR's cash and cash equivalents amounted to $96.5 million compared with $85.8 million as of May 31, 2024. The company's long-term debt totaled $968 million as of May 31, 2025, down from $985.4 million as of May 31, 2024. In fiscal 2025, net cash provided from operating activities was $36.1 million compared with net cash flow of $43.6 million in the year-ago period. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -6.25% due to these changes. VGM Scores Currently, AAR has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise AAR has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AAR Corp. (AIR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
AAR Corp (AIR) Q4 2025 Earnings Call Highlights: Record Revenue Growth and Strategic Wins
Total Revenue: $2.8 billion for fiscal year 2025, up 20% over the prior year. Adjusted EBITDA Margin: Increased 140 basis points to 11.8% in fiscal 2025. Adjusted Diluted EPS: $3.91, compared to $3.33 last year. Q4 Total Adjusted Sales: $736 million, a 12% year-over-year increase. Q4 Organic Sales Growth: 14%, excluding Landing Gear. Q4 Adjusted EBITDA: $90.9 million, a 19% increase year-over-year. Q4 Adjusted Operating Income: $76.9 million, a 25% increase year-over-year. Q4 Adjusted Diluted EPS: $1.16, a 32% increase from $0.88 in the same quarter last year. Parts Supply Sales Growth: 17% to $306 million year-over-year. Parts Supply Adjusted EBITDA Margin: Increased to 17.1% from 14.8% year-over-year. Repair and Engineering Sales Growth: 3% to $223 million year-over-year. Integrated Solutions Adjusted Sales Growth: 10% year-over-year to $181.5 million. Net Debt Leverage: Reduced from 3.06 times to 2.72 times in Q4. Q4 Cash Flow from Operations: $51 million. Stock Repurchase: $10 million worth of stock at an average price of $52.37 per share in Q4. Warning! GuruFocus has detected 8 Warning Signs with AIR. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points AAR Corp (NYSE:AIR) delivered a record full-year financial performance with a 20% increase in revenue to $2.8 billion. The company achieved a 14% organic sales growth in the fourth quarter, excluding the Landing Gear business. AAR Corp (NYSE:AIR) successfully integrated the Product Support acquisition and completed the divestiture of its Landing Gear Overhaul business. The Trax software solution captured new business wins, including a significant contract with Delta Airlines. The company reduced its net leverage to 2.7 times and is on track to meet its target leverage of 2.0 to 2.5 times. Negative Points The Repair and Engineering segment experienced a 6% decrease in adjusted EBITDA due to higher costs at the New York facility. There are near-term headwinds in the Integrated Solutions segment due to Department of State cost reduction efforts impacting the Iraq aviation operations. The company anticipates a seasonally slower sales quarter in Q1 compared to Q4. There are costs associated with the launch of the Trax supplier marketplace, which may impact margins. The USM business faces constraints in asset availability, affecting growth potential. Q & A Highlights Q: The first quarter guidance for revenue growth implies a fairly wide range. Can you discuss the factors that could influence whether you hit the lower or upper end of this range? A: John Holmes, CEO: The variability is largely due to the USM environment, where some larger transactions may shift. We had a strong Q4 and anticipate growth in Q1, but the range accounts for potential fluctuations in these transactions. Q: Can you explain the margin decline in the Repair and Engineering segment and the expected pace of improvement in fiscal '26? A: Sean Gillen, CFO: The margin decline was due to the closure of our New York facility, which left stranded costs. As we exit this facility, we expect margins to improve, and this headwind will be removed for the rest of the year. Q: With Trax crossing the $50 million revenue threshold and recent wins, what is the long-term revenue potential for Trax? A: John Holmes, CEO: We are proud to have doubled Trax's revenue since acquisition. With new business wins like Delta and upgrading existing customers to new offerings, we aim to double Trax's revenue again. Q: Are there significant costs associated with launching the supplier marketplace, and will it launch this year? A: Sean Gillen, CFO: Yes, there are costs, but Trax remains high-margin. We expect these costs to occur this fiscal year as we roll out the supplier portal and make announcements throughout the year. Q: Regarding Parts Supply, did you see any airlines overordering parts to get ahead of tariffs? A: John Holmes, CEO: We did not see significant stocking up for distribution. Order flow was even, and we actually saw a decline in shipments to Chinese customers due to tariff issues early in the quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
AAR delivers record quarter, shares gain on solid aviation demand
-- Shares of AAR Corp (NYSE:AIR) gained 2.8% Wednesday after the aviation services provider reported fourth-quarter fiscal 2025 results that easily topped Wall Street expectations, fueled by continued strength in both its commercial and government-facing businesses. Strong demand across new parts distribution and integrated solutions helped power a 15% revenue increase to $755 million, decisively ahead of consensus forecasts. Adjusted earnings per share for the quarter came in at $1.16, beating analyst estimates by $0.16, while adjusted EBITDA climbed 19% to $91 million. The company also expanded its adjusted EBITDA margin to 12.4% from 11.6% the prior year, reflecting improved operational leverage and favorable sales mix. 'Our fiscal fourth quarter was an extremely strong finish to a record year," said John M. Holmes, AAR's Chairman, President, and Chief Executive Officer. "We delivered double-digit sales and earnings growth over the prior year quarter." Holmes noted that AAR's new parts distribution business remained the company's fastest-growing line, registering over 20% organic growth. Commercial customer sales — 69% of consolidated revenue — rose 12% year-over-year, while government revenue jumped 21%, supported by expanding order volumes and strength in integrated solutions. In addition to solid top-line performance, AAR continued deleveraging following its Product Support acquisition, reducing net leverage to 2.72x from 3.58x a year before. Operating margin climbed to 9.7%, almost double the 5.0% margin reported in the prior-year quarter, supported by scale in parts supply and reduced operating expenses. For the full fiscal year, AAR posted $2.8 billion in revenue, up 20%, while adjusted diluted EPS increased 17% to $3.91. Despite a GAAP net income decline due to non-operating charges, the company reported adjusted EBITDA of $324 million, a 34% jump from the prior year. Holmes expressed confidence about fiscal 2026, suggesting continued market share gains in Parts Supply and expansion in Repair & Engineering. 'We are well-positioned within our markets and expect to drive further growth and margin expansion in our fiscal 2026,' he said. With a strengthened balance sheet and several new contract wins — including with the U.S. Defense Logistics Agency and Delta TechOps, AAR is poised to benefit from continued growth in global aviation demand. The company also highlighted successful integration of recent acquisitions and portfolio optimization efforts, including the divestiture of its landing gear overhaul business. Related articles AAR delivers record quarter, shares gain on solid aviation demand Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett Buy this massive AI stock into upcoming Q2 print: Morgan Stanley Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
16-07-2025
- Business
- San Francisco Chronicle
AAR: Fiscal Q4 Earnings Snapshot
WOOD DALE, Ill. (AP) — WOOD DALE, Ill. (AP) — AAR Corp. (AIR) on Wednesday reported fiscal fourth-quarter earnings of $34 million. The Wood Dale, Illinois-based company said it had profit of 95 cents per share. Earnings, adjusted for one-time gains and costs, were $1.16 per share. The airplane maintenance company posted revenue of $754.5 million in the period. AAR shares have climbed 23% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $75.20, falling slightly in the last 12 months. _____
Associated Press
05-06-2025
- Automotive
- Associated Press
AAR subsidiary Trax selected to modernize Delta TechOps' maintenance and engineering systems
WOOD DALE, Ill., June 5, 2025 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced today its aviation maintenance software subsidiary, Trax, has been selected to modernize Delta TechOps' maintenance and engineering systems. Delta TechOps will replace its legacy maintenance and engineering systems with Trax's advanced eMRO and eMobility solutions. Initially, more than 6,000 technicians across the Delta TechOps line maintenance network will use Trax's innovative technology to digitize their maintenance processes, leading to enhancements in efficiency, data accuracy, and operational performance. The companies plan to use this initial implementation as a foundation for the future deployment of additional Trax eMRO modules and eMobility apps focused on heavy maintenance, maintenance planning, engineering, and quality management – all hosted in the fully-managed Trax Cloud. 'AAR's strategic investments in Trax have enabled the company to scale to support the largest airlines and most diverse fleets. We are grateful to Delta for selecting Trax and look forward to powering their system modernization,' said John M. Holmes, AAR's Chairman, President and CEO. John Laughter, President of Delta TechOps, added, 'We are confident Trax will enhance our operational efficiency by streamlining maintenance processes across Delta TechOps, enabling our people to focus on delivering the Delta Difference.' About AAR AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. Additional information can be found at About Trax Trax is the premier provider of aviation maintenance mobile and cloud products in the global aviation market and a wholly-owned subsidiary of AAR CORP. Trax products support digital signatures, paperless working, including workpacks and manuals, RFID-capability for logistics, biometric security, offline capability for its suite of mobile apps, web-based applications, and the ability for users to work anywhere with easy access to real-time information. Through its eMRO and eMobility products, Trax provides comprehensive software solutions designed to manage all aspects of aircraft maintenance. Additional information can be found at About Delta TechOps Delta TechOps is the maintenance division of Delta Air Lines, providing comprehensive maintenance, repair, and overhaul services for Delta's fleet and other aviation customers. With a commitment to safety, quality, and innovation, Delta TechOps continues to set the standard for excellence in aviation maintenance. Contact: Media Team +1-630-227-5100 [email protected] View original content to download multimedia: SOURCE AAR CORP.
