NYSE$AIR

Aar Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

AAR Corp reported consolidated sales and income from continuing operations for Q1 2023.

AAR Corp reported a decrease in consolidated sales by 2% compared to the prior year's quarter, but experienced a significant increase in income from continuing operations. The company saw strong commercial performance with sales to commercial customers increasing, while sales to government customers decreased due to the completion of certain programs.

  • Consolidated sales decreased 2% year-over-year.
  • Sales to commercial customers increased 10% year-over-year.
  • Sales to government customers decreased 19% year-over-year.
  • Gross profit margins increased to 18.4% from 14.2% in the prior year quarter.

Headline financials

Total Revenue

$446M

Previous: $455M-1.9%
EPS (adj)

$0.61

Previous: $0.52+17.3%
Operating Margin

7.0%

Previous: 3.3%+112.1%
Capital Expenditures

-$6.7M

Previous: -$2.2M-204.5%
Free Cash Flow

$16M

Previous: $9.3M+72.0%
Net Income

$22.7M

Previous: $11.5M+97.4%
Operating Income

$29.5M

Previous: $13M+126.9%
Gross Profit

$81.9M

Previous: $64.6M+26.8%
Cash & Equivalents

$44.3M

Previous: $48.8M-9.2%
Total Assets

$1.6B

Previous: $1.54B+4.1%
Stock-Based Comp

$4.1M

Previous: $3.1M+32.3%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$446M

Q1 2023-1.9%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

AAR Corp · $54.3M total across 1 segment · Q4 2020

  • Expeditionary Services
    $54.3M

Forward guidance

AAR Corp is focused on securing new business and generating shareholder value through organic and inorganic investments, with a full pipeline of commercial and government opportunities.

Tailwinds

  • Strong commercial performance driven by new parts distribution contracts.
  • Hangars remained largely full throughout the summer.
  • Pipeline of both commercial and government opportunities remains full.
  • Balance sheet strength to secure new business.
  • Focus on generating shareholder value through organic and inorganic investments.

Headwinds

  • Government business saw the full impact of the wind down in Afghanistan.
  • Completion of certain other government programs.
  • Consolidated sales decreased 2% from the prior year’s quarter.
  • Selling, general, and administrative expenses increased.
  • Net interest expense increased.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.9%

Avg return

30 days after

57%

39 / 68 earnings

Positive

+24.5%

Q3 2020

Best reaction

-16.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-3.1%+2.5%
Q2 2026+0.9%+9.8%+26.4%
Q1 2026+4.3%+12.2%+10.4%
Q4 2025+2.0%+9.8%+2.7%
Q3 2025-16.4%-15.7%-22.7%
Q2 2025+8.0%+9.0%+9.5%
Q1 2025-4.7%-6.6%-11.2%
Q4 2024-13.2%-8.8%-14.9%
Q3 2024-6.6%-6.8%-0.4%
Q2 2024-10.4%-10.1%-17.1%
Q1 2024-1.1%-2.9%-5.4%
Q4 2023+0.6%+2.7%+0.6%
Q3 2023+6.6%+5.4%+5.1%
Q2 2023-3.3%-3.8%+7.7%
Q1 2023-9.3%-10.1%+9.7%
Q4 2022-8.2%-6.1%+3.4%
Q3 2022+9.1%+10.3%+7.2%
Q2 2022+7.5%+8.7%+15.4%
Q1 2022+1.7%-0.3%+8.1%
Q4 2021+9.1%+6.3%-6.2%
Q3 2021-2.1%+3.1%-4.2%
Q2 2021+2.6%+4.6%+11.4%
Q1 2021+11.8%+9.3%+17.7%
Q4 2020+4.5%-1.1%+5.8%
Q3 2020+24.5%+36.2%+25.4%
Q2 2020+14.9%+6.2%+1.4%
Q1 2020-5.9%-6.2%-7.4%
Q4 2019+9.6%+5.9%+5.3%
Q3 2019-5.6%-7.3%-6.3%
Q2 2019-1.6%-9.0%-6.0%
Q1 2019+8.1%+6.4%+1.0%
Q4 2018-10.5%-5.1%-3.1%
Q3 2018+2.1%-2.1%+6.1%
Q2 2018-6.6%-6.7%-2.9%
Q1 2018+6.4%+1.1%+5.3%
Q4 2017+5.6%+6.7%+0.1%
Q3 2017+0.5%-0.3%+1.1%
Q2 2017-9.0%-9.1%-14.8%
Q1 2017+5.8%+4.7%+12.5%
Q4 2016-5.3%-2.8%-1.3%
Q3 2016+3.7%
Q2 2016+5.2%
Q1 2016-11.6%
Q4 2015+3.6%
Q3 2015-6.8%
Q2 2015-3.3%
Q1 2015-11.5%
Q4 2014+7.4%
Q3 2014-7.4%
Q2 2014-4.4%
Q1 2014-8.2%
Q4 2013-0.9%
Q3 2013+8.1%
Q2 2013+18.0%
Q1 2013-5.6%
Q4 2012+9.7%
Q3 2012-1.5%
Q2 2012+1.1%
Q1 2012-2.6%
Q4 2009+2.2%
Q4 2011+2.2%
Q3 2011+0.3%
Q3 2010+0.3%
Q2 2010+0.4%
Q2 2011+0.4%
Q1 2010+4.3%
Q4 2010+4.3%
Q1 2011+4.3%

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