AAR Q2 Earnings Surpass Estimates, Sales Increase Year Over Year

AAR Corp. AIR reported second-quarter fiscal 2025 adjusted earnings of 90 cents per share, which surpassed the Zacks Consensus Estimate of 83 cents by 8.4%. The bottom line improved 11.1% from the year-ago quarter’s level.The company reported a GAAP loss of 87 cents per share compared to earnings per share of 67 cents in the prior-year quarter.The year-over-year improvement in the bottom line can be attributed to strong demand and driving efficiencies throughout the business.See the Zacks Earnings Calendar to stay ahead of market-making news.AIR’s Total SalesIn the quarter under review, AAR generated net sales of $686.1 million. The reported figure beat the Zacks Consensus Estimate of $652.6 million by 5.1% and increased 25.8% from $545.4 million recorded in the year-ago quarter.The year-over-year improvement can be attributed to organic growth, and increasing commercial and government sales.AAR Corp. Price, Consensus and EPS Surprise AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. QuoteAAR: Segment DetailsIn the fiscal second quarter, sales in the Parts Supply segment totaled $273.7 million, up 20.3% year over year.Repair & engineering reported sales of $228.8 million, up 57.4% from the prior-year period’s level.Integrated solutions sales amounted to $163.4 million, up 4.3% from the year-ago quarter’s reported numbers.Expeditionary Services recorded sales of $20.2 million, up 27.8% year over year.AIR’s Operational UpdateAIR’s adjusted operating margin increased from 8.1% to 9.2%, driven by improved profitability in the Repair & Engineering segment.Selling, general and administrative expenses amounted to $133.1 million compared with $65.7 million a year ago.Net interest expenses for the quarter totaled $18.8 million compared with $5.6 million in the year-ago period.Financial Details of AARAs of Nov. 30, 2024, AAR’s cash and cash equivalents amounted to $61.7 million compared with $85.8 million as of May 31, 2024.The company’s long-term debt totaled $986.7 million as of Nov. 30, 2024, up from $985.4 million as of May 31, 2024.In the first six months of fiscal 2025, net cash flow from operating activities amounted to $3.4 million compared with cash outflow of $1.3 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 third-quarter results are discussed below:Hexcel Corporation HXL will report its fourth-quarter results on Jan. 22 after market close. The Zacks Consensus Estimate for HXL’s earnings is pegged at $2.02 per share, implying an improvement of 11.6% from the year-ago quarter.The consensus estimate for its sales is pegged at $1.91 billion, indicating year-over-year growth of 6.6%.RTX Corporation RTX is expected to report its fourth-quarter 2024 results on Jan. 28. The Zacks Consensus Estimate for RTX’s earnings stands at $5.55 per share, calling for an improvement of 9.7% from the year-ago quarter.The consensus estimate for its sales is pegged at $79.75 billion, indicating year-over-year growth of 7.2%.Lockheed Martin Corporation LMT will report fourth-quarter 2024 results on Jan. 28 before the opening bell. The Zacks Consensus Estimate for LMT’s earnings is pegged at $26.68 per share.The consensus estimate for sales is pegged at $71.27 billion, implying a 5.5% increase from the year-earlier level.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report AAR Corp. (AIR): Free Stock Analysis Report Hexcel Corporation (HXL): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks