NYSE$AIR

Aar Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

AAR Corp reported record fourth quarter and fiscal year 2023 results driven by increased commercial air travel demand and actions to improve margins.

AAR Corp reported Q4 2023 consolidated sales of $553.3 million and income from continuing operations of $23.2 million, or $0.66 per diluted share. Adjusted diluted earnings per share were $0.83, compared to $0.72 in the prior year. Consolidated fourth quarter sales increased 16% over the prior year quarter.

  • Consolidated fourth quarter sales increased 16% over the prior year quarter.
  • Consolidated sales to commercial customers increased 31% over the prior year quarter, primarily due to further recovery in the commercial market.
  • Sales to commercial customers were 69% of consolidated sales, compared to 62% in the prior year quarter.
  • Gross profit margins were 19.5% in the current quarter, compared to 18.9% in the prior year quarter.

Headline financials

Total Revenue

$553M

Previous: $476M+16.2%
EPS (adj)

$0.83

Previous: $0.72+15.3%
Operating Margin

6.6%

Previous: 6.6%+0.0%
Capital Expenditures

$7M

Previous: $7.1M-1.4%
Free Cash Flow

$38.2M

Previous: $33M+15.8%
Net Income

$23.2M

Previous: $23.9M-2.9%
Operating Income

$36.5M

Previous: $31.4M+16.2%
Gross Profit

$108M

Previous: $90M+19.9%
Cash & Equivalents

$57.6M

Previous: $40.2M+43.3%
Total Assets

$1.83B

Previous: $1.57B+16.5%
Stock-Based Comp

$3.1M

Previous: $2.4M+29.2%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$553M

Q4 2023+16.2%vs Q4 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

The company expects continued growth in its parts business due to increasing demand for used material and the full ramp-up of recent new parts distribution contract awards. Our hangars are expected to remain largely full throughout the year, and we are excited about the opportunities Trax provides to help further strengthen the AAR value proposition. Our new business pipeline across the commercial and government markets remains strong, and we believe we are well-positioned to continue our growth and margin expansion.

Tailwinds

  • Continued growth in parts business due to increasing demand for used material.
  • Full ramp-up of recent new parts distribution contract awards.
  • Hangars are expected to remain largely full throughout the year.
  • Opportunities Trax provides to help further strengthen the AAR value proposition.
  • New business pipeline across the commercial and government markets remains strong.

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 Q4 2023

Historical avgQ4 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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