分组1 - AAR reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and up from $0.83 per share a year ago, representing an earnings surprise of 2.33% [1] - The company posted revenues of $656.5 million for the quarter ended May 2024, which missed the Zacks Consensus Estimate by 0.55%, compared to $553.3 million in the same quarter last year [1] - AAR has surpassed consensus EPS estimates three times over the last four quarters, while it has topped consensus revenue estimates only once in the same period [1] 分组2 - AAR shares have increased approximately 18.9% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [2] - The current consensus EPS estimate for the upcoming quarter is $0.95 on revenues of $662.8 million, and for the current fiscal year, it is $4.10 on revenues of $2.72 billion [4] - The Aerospace - Defense Equipment industry is currently ranked in the top 21% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [4]

Partnerships and Acquisitions - In fiscal 2024, the company established new partnerships and expanded service offerings, leading to record levels of MRO spend and increased demand for aircraft maintenance [208]. - The acquisition of Trax in Q4 fiscal 2023 added higher-margin aviation aftermarket software offerings with recurring revenue, supporting approximately 5,000 aircraft [211]. - The company acquired Triumph Group, Inc.'s Product Support business for $725 million, enhancing its MRO capabilities and expanding its footprint in the Asia-Pacific region [212]. - The Product Support acquisition is expected to drive margin and revenue growth in fiscal 2025 by scaling component services and balancing the portfolio within the Repair & Engineering segment [213]. Financial Performance - Consolidated sales in fiscal 2024 increased by $328.4 million, or 16.5%, primarily due to a 23.3% increase in sales to commercial customers [215]. - Gross profit in fiscal 2024 increased by $72.2 million, or 19.5%, with commercial customer gross profit rising by 29.6% [217]. - Selling, general and administrative expenses rose by $81.8 million, or 35.5%, largely due to acquisition-related expenses [219]. - Operating income in fiscal 2024 decreased by $4.7 million, or 3.5%, primarily due to increased selling, general and administrative expenses [221]. Segment Performance - Parts Supply segment sales increased by $148.6 million, or 18.2%, driven by new parts distribution activities [225]. - Repair & Engineering segment sales rose by $106.7 million, or 20.0%, mainly due to the acquisition of the Product Support business [230]. - Integrated Solutions segment sales increased by $95.0 million, or 17.4%, attributed to higher commercial program activity [231]. - Expeditionary Services segment sales decreased by $21.9 million, or 23.9%, primarily due to lower sales volumes for pallets [234]. Cash Flow and Liquidity - As of May 31, 2024, liquidity included working capital of $922.7 million, with cash of $85.8 million [237]. - Net cash provided by operating activities increased to $43.6 million in fiscal 2024, up from $23.3 million in the prior year, primarily due to working capital changes [250]. - Net cash used in investing activities rose significantly to $758.5 million in fiscal 2024, compared to $138.0 million in the prior year, mainly due to the acquisition of the Product Support business [251]. - Net cash provided by financing activities was $729.2 million in fiscal 2024, an increase from $137.7 million in the prior year, primarily related to debt financing for the acquisition of the Product Support business [252]. Receivables and Obligations - As of May 31, 2024, accounts receivable included $8.4 million, with $4.1 million past due, and contract assets of $10.1 million related to a significant regional airline customer [248]. - The maximum amount of receivables sold under the Purchase Agreement with Citibank N.A. is limited to $150.0 million, with $12.8 million utilized as of May 31, 2024 [245][246]. - The company has contractual obligations totaling $447.0 million for credit agreement borrowings and $550.0 million for 6.75% senior notes as of May 31, 2024 [253]. - The company has off-balance sheet purchase obligations amounting to $656.0 million, primarily related to inventory acquisition commitments [254]. Revenue Recognition and Accounting Policies - Revenue is recognized at a point in time upon transfer of control to the customer, generally upon shipment [270]. - The company utilizes the cost-to-cost method to recognize revenue over time, measuring progress based on actual costs incurred relative to estimated total costs [271]. - Changes in estimates related to long-term programs are recorded using the cumulative catch-up method, primarily affecting profitability estimates [272]. - Contract modifications that do not create distinct obligations are accounted for as adjustments to existing contracts, recognized on a cumulative catch-up basis [273]. - Contract assets consist of unbilled receivables where revenue recognized exceeds amounts billed, while contract liabilities include advance payments [276]. Risk Management and Impairment - An allowance for credit losses is maintained based on past collection history and specific risks, considering economic conditions and customer credit history [277]. - Regular evaluations of customer payment experience and financial condition are performed, with collateral required for transactions outside normal trade terms [278]. - Impairment testing of long-lived assets is conducted when events indicate that carrying values may not be recoverable from undiscounted cash flows [280]. - The company maintains a significant inventory of rotable parts and equipment, which may require impairment recognition if certain aircraft models are discontinued [281].

Financial Performance - Record fourth quarter sales of $657 million, up 19% over the prior year[1] - Fourth quarter adjusted diluted earnings per share from continuing operations of $0.88, up 6% from $0.83 in Q4 FY2023[1] - Full year consolidated sales were $2.3 billion, an increase of 17% from fiscal year 2023[7] - Sales to commercial customers increased 20% over the prior year quarter, representing 70% of consolidated sales[2] - Adjusted operating margin increased from 7.5% in fiscal year 2023 to 8.3% in fiscal year 2024[7] - Operating margins were 5.6% for the full year, compared to 6.7% in fiscal year 2023[7] - Total third-party sales for the three months ended May 31, 2024, reached $656.5 million, up from $553.3 million in the same period of 2023, with year-to-date sales increasing to $2,318.9 million from $1,990.5 million[17] - Adjusted diluted earnings per share from continuing operations increased to $0.88 for the three months ended May 31, 2024, up from $0.83 in the same period last year, representing a 6.0% growth[23] - Adjusted operating margin improved to 9.3% for the three months ended May 31, 2024, compared to 8.3% for the same period in 2023[24] - Adjusted EBITDA for the three months ended May 31, 2024, was $76.4 million, significantly higher than $53.0 million for the same period in 2023, marking a 44.0% increase[25] - Total sales for the year ended May 31, 2024, reached $2,318.9 million, compared to $1,990.5 million for the year ended May 31, 2023, indicating a 16.5% growth[24] Cash Flow and Liquidity - Cash flow provided by operating activities from continuing operations was $43.8 million in fiscal year 2024[9] - Cash flows provided by operating activities from continuing operations were $24.5 million for the three months ended May 31, 2024, compared to $45.3 million in the same period of 2023[16] - The company’s cash and cash equivalents increased to $85.8 million, compared to $68.4 million in the prior year, showing better liquidity[15] - The company’s cash and cash equivalents at the end of the period were $96.1 million, up from $81.8 million at the beginning of the period, indicating improved liquidity[16] Debt and Interest Expense - Net interest expense for the quarter was $18.7 million, compared to $4.7 million last year[5] - Long-term debt increased to $985.4 million as of May 31, 2024, compared to $269.7 million in the prior year, reflecting a significant rise[15] - Net debt increased significantly to $911.2 million as of May 31, 2024, compared to $203.6 million in the previous year[26] - Total debt as of May 31, 2024, was $997.0 million, a significant increase from $272.0 million in 2023[26] - The ratio of net debt to adjusted EBITDA rose to 3.76 as of May 31, 2024, compared to 1.07 in the prior year[27] - The net debt to pro forma adjusted EBITDA ratio was reported at 3.30[28] Profitability and Expenses - Gross profit for the three months ended May 31, 2024, was $127.3 million, representing a 17.8% increase compared to $108.1 million in the prior year[14] - Selling, general and administrative expenses rose to $94.8 million, up 33.9% from $70.8 million in the same period last year, impacting overall profitability[14] - The company incurred a pension settlement charge of $26.7 million during the year ended May 31, 2024, impacting overall financial performance[16] - Acquisition, integration, and amortization expenses for the three months ended May 31, 2024, were $18.6 million, up from $5.1 million in the same period last year[22] - Investigation and remediation compliance costs increased to $4.8 million for the three months ended May 31, 2024, compared to $1.6 million for the same period in 2023[22] Segment Performance - Operating income for the Parts Supply segment increased to $35.2 million for the three months ended May 31, 2024, compared to $29.0 million in the same period of 2023, contributing to a year-to-date operating income of $109.8 million versus $93.7 million[18] - The Parts Supply segment generated $260.3 million in sales for the three months ended May 31, 2024, compared to $238.6 million in the same period of 2023, indicating a growth trend[17] - The Repair & Engineering segment saw sales increase to $216.4 million for the three months ended May 31, 2024, from $143.0 million in the same period of 2023, reflecting strong demand[17] Earnings and Adjustments - Net income for the three months ended May 31, 2024, was $9.1 million, a decrease of 60.8% from $23.2 million in the same period last year[14] - The company reported a basic earnings per share of $0.26 for the three months ended May 31, 2024, down from $0.67 in the same period last year[14] - Net income for the three months ended May 31, 2024, was $9.1 million, a decrease from $23.2 million for the same period in 2023, while the year-to-date net income was $46.3 million compared to $90.2 million in the previous year[16] - Adjusted income from continuing operations for the three months ended May 31, 2024, was $31.3 million, compared to $29.1 million for the same period in 2023, reflecting a 7.6% increase[22] - Adjusted EBITDA for the year ended May 31, 2024, was reported at $242.4 million, up from $189.8 million in 2023[27] - Pro forma adjusted EBITDA, including product support, reached $275.9 million for the year ended May 31, 2024[28] - Adjusted EBITDA reflects income from continuing operations before interest, taxes, depreciation, and amortization, with adjustments for various unusual items, providing a clearer view of core operating performance[21]

Record fourth quarter sales of $657 million, up 19% over the prior yearFourth quarter GAAP diluted earnings per share from continuing operations of $0.26, compared to $0.66 in Q4 FY2023Record fourth quarter adjusted diluted earnings per share from continuing operations of $0.88, up 6% from $0.83 in Q4 FY2023Fourth quarter cash flow provided by operating activities from continuing operations of $25 millionRecord full year sales of $2.3 billion, up 17% over the prior yearFull year GAAP diluted earnings per sh ...

Acquisition will build on Honeywell's energy transition capabilities by creating an end-to-end offering for customers worldwideThe combination will create new opportunities for diversified growth and innovation in aftermarket services and software Transaction is expected to be immediately accretive to Honeywell's sales growth and segment margin while also accretive to adjusted EPS in the first full year of ownershipAir Products to continue its focus on its industrial gas business and related technology and ...

WOOD DALE, Ill., July 2, 2024 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, today announced that it will release financial results for its fourth quarter of fiscal year 2024, ended May 31, 2024, after the close of the New York Stock Exchange trading session on Thursday, July 18, 2024.On Thursday, July 18, 2024, at 4:00 p.m. Central time, AAR will hold a conference call to discuss the results. A listen-only webcast and s ...

Core Points - AAR CORP. has been recognized as one of America's Greatest Workplaces for 2024 by Newsweek and Plant-A Insights Group, highlighting its commitment to employee satisfaction through a people-oriented culture, competitive compensation, and career development opportunities [1][2] - The recognition is based on a large-scale employer study that analyzed over 1.5 million company reviews from more than 250,000 employees across the United States [1][2] Company Overview - AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries, headquartered in the Chicago area [3] - The company supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services [3]

AAR Corp. (AIR) recently enhanced its electronics distribution partnership with OTTO Engineering Inc. (OTTO) through a territorial extension agreement. This expansion will now enable AAR to bolster the availability of its electromechanical product in the Asia-Pacific (“APAC”) region.Per the terms of the contract, AAR will supply the defense and commercial industries with OTTO's full range of electromechanical switches, grips and joysticks. With this arrangement, AAR can provide a wider selection of products ...

Transaction reinforces Johnson Controls commitment to simplifying and standardizing portfolio as a comprehensive solutions provider for commercial buildingsMILWAUKEE, June 18, 2024 /PRNewswire/ -- Johnson Controls (NYSE: JCI), a global leader for smart, healthy and sustainable buildings, today announced it has reached a definitive agreement to sell its Air Distribution Technologies business to Truelink Capital, a middle-market private equity firm based in Los Angeles."The sale of our Air Distribution Techno ...

WOOD DALE, Ill., June 13, 2024 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, has signed a territory expansion agreement that expands its Americas-based electronics distribution relationship with OTTO Engineering, Inc. (OTTO) into the APAC region. Under the agreement, AAR will distribute OTTO's extensive line of electromechanical switches, grips, and joysticks to the commercial and defense markets. The agreement leverage ...