AAR Q1 Earnings Beat Estimates, Sales Increase Year Over Year

AAR Corp. AIR reported first-quarter fiscal 2026 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate of 98 cents by 10.2%. The bottom line also improved 27.1% from the year-ago quarter’s level of 85 cents.The company reported GAAP earnings of 95 cents per share compared with 50 cents in the prior-year quarter.The year-over-year improvement in the bottom line can be attributed to strong sales growth and lower selling, general and administrative expenses.AIR’s Total SalesIn the quarter under review, AAR generated net sales of $739.6 million. The reported figure beat the Zacks Consensus Estimate of $686 million by 7.9%. The figure also increased 11.8% from $661.7 million recorded in the year-ago quarter.The year-over-year improvement can be attributed to the double-digit growth across both aftermarket parts trading and new parts distribution within the company’s Parts Supply segment.AAR Corp. Price, Consensus and EPS Surprise AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. QuoteAAR: Segment DetailsIn the fiscal first quarter, sales in the Parts Supply segment totaled $317.8 million, up 27.3% year over year.Repair & engineering reported sales of $214.6 million, down 1.4% from the prior-year period’s level.Integrated solutions sales amounted to $185 million, up 9.5% from the year-ago quarter’s reported number.Expeditionary Services recorded sales of $22.2 million, down 12.9% year over year.AIR’s Operational UpdateAIR’s adjusted operating margin increased from 9.1% to 9.7%, driven by higher volume and profitability in new parts distribution activities.Selling, general and administrative expenses amounted to $71.2 million compared with $75.9 million a year ago.Net interest expenses for the quarter totaled $18.5 million compared with $18.3 million in the year-ago period.Financial Details of AARAs of Aug. 31, 2025, AAR’s cash and cash equivalents amounted to $80 million compared with $96.5 million as of May 31, 2025.The company’s long-term debt totaled $1.02 billion as of Aug. 31, 2025, up from $0.97 billion as of May 31, 2025.In the first three months of fiscal 2026, net cash used from operating activities was $44.9 million compared with net cash used of $18.6 million in the year-ago period.AIR’s Zacks RankAAR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming Defense ReleasesOther companies from the same sector that will soon report their quarterly results are discussed below:Northrop Grumman Corporation NOC will report its third-quarter 2025 results on Oct. 21, before market open. The Zacks Consensus Estimate for NOC’s earnings is pegged at $6.43 per share, indicating a year-over-year decline of 8.1%.The consensus estimate for sales stands at $10.69 billion, calling for year-over-year growth of 6.9%.RTX Corporation RTX is set to report third-quarter 2025 results soon. The Zacks Consensus Estimate for RTX’s earnings is pegged at $1.41 per share, implying a year-over-year decrease of 2.8%.The consensus estimate for its sales is pegged at $21.40 billion, indicating year-over-year growth of 6.5%.Textron Inc. TXT is slated to report third-quarter 2025 results soon. The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.46 per share, indicating a year-over-year fall of 4.3%.The consensus estimate for its sales is pegged at $3.70 billion, calling for a year-over-year rise of 8.1%.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report AAR Corp. (AIR): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks