NYSE$AIR

Aar Corp · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

AAR Corp's Q1 2025 earnings showcased significant revenue growth and profitability improvements.

AAR Corp reported a strong first quarter for fiscal year 2025, with consolidated sales of $661.7 million and net income of $18.0 million, or $0.50 per diluted share. This represents a 20% increase in sales compared to the prior year quarter. Adjusted diluted earnings per share were $0.85, compared to $0.78 in the prior year. The company saw growth in both commercial and government sectors, driven by organic growth and the acquisition of the Product Support business.

  • Consolidated sales increased by 20% compared to the prior year quarter.
  • Net income reached $18.0 million, or $0.50 per diluted share, a significant improvement from the prior year's net loss.
  • Adjusted diluted earnings per share increased to $0.85, up from $0.78 in the prior year.
  • Sales to both commercial and government customers increased by 20%.

Headline financials

Total Revenue

$662M

Previous: $550M+20.4%
EPS

$0.50

Previous: $0.78-35.9%
Adjusted EBITDA

$73.7M

No prior period
Adjusted EBITDA Margin

11.3%

No prior period
Operating Margin

6.6%

No prior period
Capital Expenditures

-$7.9M

Previous: -$9.1M+13.2%
Free Cash Flow

$10.1M

Previous: -$9.7M+204.1%
Net Income

$18M

Previous: -$600K+3100.0%
Operating Income

$35.3M

Previous: $19.8M+78.3%
Gross Profit

$117M

Previous: $101M+15.7%
Cash & Equivalents

$49.3M

Previous: $70.3M-29.9%
Total Assets

$2.78B

Previous: $1.95B+42.4%
Stock-Based Comp

$5M

Previous: $4.3M+16.3%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$662M

Q1 2025+20.4%vs Q1 2024
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 anticipates further margin expansion as they continue to drive growth in higher margin activities and fully integrate the Product Support business. Demand remains exceptionally strong for their services, and they expect continued growth across both commercial and government businesses.

Tailwinds

  • Expect further margin expansion.
  • Driving growth in higher margin activities.
  • Fully integrating the Product Support business.
  • Demand remains exceptionally strong for our services.
  • Expect continued growth across both commercial and government businesses.

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 2025

Historical avgQ1 2025

+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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