Aerospace firm AAR Corp Q4 adjusted profit beats expectations

Reuters
17 Jul
Aerospace firm AAR Corp Q4 adjusted profit beats expectations

Overview

  • AAR Corp fiscal Q4 sales rise 15% to $755 mln, beating expectations, per LSEG data

  • Adjusted EPS for fiscal Q4 beats analyst estimates, per LSEG data

  • Co completed integration of Product Support acquisition, divested Landing Gear Overhaul business

Outlook

  • Company expects to gain market share in Parts Supply in fiscal 2026.

  • AAR Corp anticipates growth in Trax software business in fiscal 2026.

  • Company sees opportunities for margin improvement through efficiency initiatives.

  • AAR Corp plans to expand capabilities in Repair & Engineering in fiscal 2026.

Result Drivers

  • PARTS DISTRIBUTION - Over 20% organic sales growth driven by market growth and share gains, per CEO John M. Holmes

  • GOVERNMENT DEMAND - 21% increase in sales to government customers due to higher order volumes

  • PORTFOLIO OPTIMIZATION - Completed integration of Product Support acquisition and divested Landing Gear Overhaul business

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Beat

$754.50 mln

$695.70 mln (5 Analysts)

Q4 Adjusted EPS

Beat

$1.16

$1.01 (5 Analysts)

Q4 EPS

$0.95

Q4 Net Income

$34 mln

Q4 Credit Loss Provision

$500,000

Q4 Operating Income

$73 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy"

  • Wall Street's median 12-month price target for AAR Corp is $80.50, about 8.8% above its July 15 closing price of $73.39

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPnbyymKla

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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