earnings
confidence high
sentiment positive
materiality 0.80
AAR Q1 FY27 sales $918M up 24%, adjusted EPS $1.49; to acquire 65% of MRO Holdings
AAR CORP
2027-Q1 EPS reported
$1.00
revenue$918,000,000
- Q1 FY27 sales $918.0M, up 24% from $739.6M; net income $40.1M vs $34.4M; GAAP diluted EPS $1.00 vs $0.95.
- Adjusted diluted EPS $1.49, up 38% YoY; adjusted EBITDA $117M, up 34%; adjusted EBITDA margin 12.7% vs 11.7%.
- Parts Supply sales +31% with 23% organic growth in new parts Distribution; Repair, Engineering & Software +31%; Government Solutions +4%.
- FY27 guidance: sales growth ex-LCP 'low teens' vs prior 'low double-digits to low teens'; Q2 sales growth ex-LCP 14-16%, adjusted EBITDA margin ex-LCP 13.0-13.4%.
- Definitive agreement to acquire 65% controlling interest in MRO Holdings; terms not disclosed; Q1 cash from operations $55.8M; net leverage 1.81x.