AAR Corp. AIR reported second-quarter fiscal 2025 adjusted earnings of 90 cents per share, which surpassed the Zacks Consensus Estimate of 83 cents by 8.4%. The bottom line improved 11.1% from the year-ago quarter’s level.
The company reported a GAAP loss of 87 cents per share compared to earnings per share of 67 cents in the prior-year quarter.
The year-over-year improvement in the bottom line can be attributed to strong demand and driving efficiencies throughout the business.
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AIR’s Total Sales
In the quarter under review, AAR generated net sales of $686.1 million. The reported figure beat the Zacks Consensus Estimate of $652.6 million by 5.1% and increased 25.8% from $545.4 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to organic growth, and increasing commercial and government sales.
AAR Corp. Price, Consensus and EPS Surprise
AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote
AAR: Segment Details
In the fiscal second quarter, sales in the Parts Supply segment totaled $273.7 million, up 20.3% year over year.
Repair & engineering reported sales of $228.8 million, up 57.4% from the prior-year period’s level.
Integrated solutions sales amounted to $163.4 million, up 4.3% from the year-ago quarter’s reported numbers.
Expeditionary Services recorded sales of $20.2 million, up 27.8% year over year.
AIR’s Operational Update
AIR’s adjusted operating margin increased from 8.1% to 9.2%, driven by improved profitability in the Repair & Engineering segment.
Selling, general and administrative expenses amounted to $133.1 million compared with $65.7 million a year ago.
Net interest expenses for the quarter totaled $18.8 million compared with $5.6 million in the year-ago period.
Financial Details of AAR
As of Nov. 30, 2024, AAR’s cash and cash equivalents amounted to $61.7 million compared with $85.8 million as of May 31, 2024.
The company’s long-term debt totaled $986.7 million as of Nov. 30, 2024, up from $985.4 million as of May 31, 2024.
In the first six months of fiscal 2025, net cash flow from operating activities amounted to $3.4 million compared with cash outflow of $1.3 million in the year-ago period.
AIR’s Zacks Rank
AAR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Defense Releases
Other companies from the same sector that will soon report their third-quarter results are discussed below:
Hexcel Corporation HXL will report its fourth-quarter results on Jan. 22 after market close. The Zacks Consensus Estimate for HXL’s earnings is pegged at $2.02 per share, implying an improvement of 11.6% from the year-ago quarter.
The consensus estimate for its sales is pegged at $1.91 billion, indicating year-over-year growth of 6.6%.
RTX Corporation RTX is expected to report its fourth-quarter 2024 results on Jan. 28. The Zacks Consensus Estimate for RTX’s earnings stands at $5.55 per share, calling for an improvement of 9.7% from the year-ago quarter.
The consensus estimate for its sales is pegged at $79.75 billion, indicating year-over-year growth of 7.2%.
Lockheed Martin Corporation LMT will report fourth-quarter 2024 results on Jan. 28 before the opening bell. The Zacks Consensus Estimate for LMT’s earnings is pegged at $26.68 per share.
The consensus estimate for sales is pegged at $71.27 billion, implying a 5.5% increase from the year-earlier level.
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