earnings
confidence high
sentiment positive
materiality 0.75
AAR Q3 FY2025 adjusted EPS $0.99 (+16%); sales $678M (+20%); GAAP loss on $63.7M charge
AAR CORP
2025-Q3 EPS
reported -$0.61
vs consensus $0.99
▼ miss
(-161.3%)
- Adjusted diluted EPS $0.99 vs $0.85 YoY; GAAP net loss $8.9M ($0.25 loss per share) due to $63.7M charge on landing gear divestiture.
- Sales $678M (+20%); Parts Supply +12%, Repair & Engineering +53% YoY; commercial 72% of sales.
- Adjusted EBITDA $81M (+39%), margin 12.0% up from 10.3%; adjusted operating margin 9.7% vs 8.3%.
- Landing Gear Overhaul divestiture for $51M expected Q4 FY2025; new agreements with Chromalloy, Unison (DLA), and Cathay Pacific (Trax).
- Net debt $947.6M, net leverage 3.06x (down from 3.58x); FCPA settlement of $56M paid in quarter.