NYSE$AIR

Aar Corp · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

AAR Corp reported record sales and improved margins.

AAR Corp's second quarter fiscal year 2025 saw a 26% increase in sales to $686.1 million. However, the company reported a net loss of $30.6 million, or $0.87 per share, due to after-tax charges of $57.1 million associated with the FCPA settlement and related costs. Adjusted diluted earnings per share were $0.90, compared to $0.81 in the same quarter last year.

  • Sales grew 26%, underpinned by strong organic growth of 12%.
  • Sales in Repair & Engineering grew 57% year-over-year.
  • Adjusted EBITDA margins increased to 11.4% from 10.1% in the prior year quarter.
  • New distribution agreements were signed with Chromalloy and Whippany Actuation Systems.

Headline financials

Total Revenue

$686M

Previous: $545M+25.8%
EPS (adj)

$0.90

Previous: $0.81+11.1%
Capital Expenditures

-$16.2M

Previous: -$16.4M+1.2%
Free Cash Flow

-$46.8M

Previous: $7.4M-732.4%
Net Income

-$30.6M

Previous: $23.8M-228.6%
Operating Income

-$12.8M

Previous: $30M-142.7%
Gross Profit

$129M

Previous: $103M+24.4%
Cash & Equivalents

$61.7M

Previous: $65.1M-5.2%
Total Assets

$2.85B

Previous: $1.97B+45.0%
Stock-Based Comp

$5M

Previous: $3.6M+38.9%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$686M

Q2 2025+25.8%vs Q2 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 anticipates continued strong sales growth and further margin expansion in the second half of fiscal year 2025. These margins should improve even further in fiscal year 2026.

Tailwinds

  • Continued strong sales growth in the second half of fiscal year 2025.
  • Further margin expansion in the same period.
  • Benefits from continued growth in Parts Supply.
  • Synergies from the Product Support acquisition.
  • Completion of recently announced divestiture.

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 Q2 2025

Historical avgQ2 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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