AAR Corp. (NYSE: AIR) Q4 2025 Earnings | 17/07/2025

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AAR Corp. (NYSE: AIR) reported robust Q4 2025 results on July 17, 2025, capping a record fiscal year with double-digit growth in sales and profitability. Quarterly sales soared to $755 million, a 15% increase from Q4 2024, reflecting strong demand across commercial and government aviation, particularly in their Parts Supply and Distribution operations. Adjusted diluted earnings per share surged 32% to $1.16, beating analyst expectations and last year’s figure of $0.88. GAAP earnings per share were $0.95, up from $0.26 in the year-ago quarter. Net income for the quarter rose markedly to $34 million. The Parts Supply segment led performance with sales up 17% year-over-year, underpinned by demand for aftermarket parts and rapid expansion in the new distribution business. Integrated Solutions sales also grew 10%, while Repair & Engineering saw a modest 3% increase. Adjusted EBITDA for Q4 reached $91 million, up 19%, with a margin increase to 12.4%. AAR’s operating margin climbed to 9.7%, and adjusted operating margin expanded to 10.5%, reflecting ongoing efficiency gains and a favorable sales mix. For the full fiscal year 2025, total sales reached $2.8 billion, up 20% from $2.3 billion a year earlier. Adjusted diluted EPS was $3.91 (up 17% year-over-year), and adjusted EBITDA was $324 million, a 34% rise. Growth was driven by both organic expansion—especially in new parts distribution—and portfolio optimization actions, such as the integration of the Product Support acquisition and the divestiture of the Landing Gear Overhaul business. Selling, general, and administrative expenses for the quarter declined to $77.4 million, while net debt leverage dropped to 2.72x, reflecting prudent financial management. Outlook: Continued double-digit sales and earnings growth expected, led by Parts Supply and Distribution activities. Management will pursue further margin expansion through portfolio optimization, operational efficiency, and synergy realization. Focus remains on investment in digital solutions, such as the Trax software platform, and in hangar expansion to support future demand. The company maintains a strong balance sheet, with cash of $96.5 million and ongoing stock repurchases. About Inside Ticker: For more expert analysis and real-time updates on AAR Corp. (NYSE: AIR) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #AAR #AIR #Q42025 #Earnings #AviationServices #PartsSupply #Distribution #FinancialResults #NetIncome #EPS #StockMarket #Investing #InsideTicker #AdjustedEBITDA #MarginExpansion #PortfolioOptimization #OperationalEfficiency #GovernmentContracts #CommercialAviation #ShareholderReturns #2025Outlook