AAR Q3 Earnings Surpass Estimates, Sales Increase Year Over Year

AAR Corp. AIR reported third-quarter fiscal 2026 adjusted earnings of $1.25 per share, which topped the Zacks Consensus Estimate of $1.21 by 3.3%. The bottom line also improved 26.3% from the year-ago quarter’s level of 99 cents.The company reported GAAP earnings of $1.71 per share compared with a loss of 25 cents per share in the prior-year quarter.The year-over-year improvement in the bottom line can be attributed to strong sales growth.AIR’s Total SalesIn the quarter under review, AAR generated net sales of $845.1 million. The reported figure beat the Zacks Consensus Estimate of $807 million by 4.7%. The figure also increased 24.6% from $678.2 million recorded in the year-ago quarter.The year-over-year improvement can be attributed to the double-digit growth across 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 third quarter, sales in the Parts Supply segment totaled $392.5 million, up 45% year over year.Repair & Engineering reported sales of $265.3 million, up 22.9% from the prior-year period’s level.Integrated Solutions sales amounted to $167.8 million, up 3% from the year-ago quarter’s reported number.Expeditionary Services recorded sales of $19.5 million, down 32.1% year over year.AIR’s Operational UpdateAIR’s adjusted operating margin increased from 9.7% to 10.2%, driven by higher volume and profitability in new parts distribution activities.Selling, general and administrative expenses amounted to $89.8 million compared with $61.3 million a year ago.Net interest expenses for the quarter totaled $17.1 million compared with $18.1 million in the year-ago period.Financial Details of AARAs of Feb. 28, 2026, AAR’s cash and cash equivalents amounted to $78.5 million compared with $96.5 million as of May 31, 2025.The company’s long-term debt totaled $888.3 million as of Feb. 28, 2026, up from $968 million as of May 31, 2025.In the first nine months of fiscal 2026, net cash from operating activities was $74.7 million against the net cash used of $18.7 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.Recent Defense ReleasesThe Boeing Company BA incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.RTX Corporation’s RTX fourth-quarter 2025 adjusted EPS of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.Northrop Grumman Corporation NOC reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.NOC’s total sales of $11.71 billion in the fourth quarter beat the consensus estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(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