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: