FY25 Financial Performance - Adjusted sales increased by 20% from $2.3 billion in FY24 to $2.8 billion in FY25[10] - Adjusted EBITDA increased by 34% from $242 million in FY24 to $324 million in FY25[10] - Adjusted EPS increased by 17% from $3.33 in FY24 to $3.91 in FY25[10] - Net leverage decreased from 3.30x in FY24 to 2.72x in FY25[10] Q4 FY25 Financial Performance - Adjusted EPS increased by 32% from $0.88 in Q4 FY24 to $1.16 in Q4 FY25[14] - Adjusted sales increased by 12% from $658.8 million in Q4 FY24 to $735.8 million in Q4 FY25[14] - Adjusted operating income increased by 25% from $61.3 million in Q4 FY24 to $76.9 million in Q4 FY25[14] - Adjusted EBITDA increased by 19% from $76.4 million in Q4 FY24 to $90.9 million in Q4 FY25[14] Segment Performance in Q4 FY25 - Parts Supply sales increased by 17% from $260.3 million in Q4 FY24 to $305.5 million in Q4 FY25[14] - Integrated Solutions sales increased by 10% from $165.8 million in Q4 FY24 to $181.5 million in Q4 FY25[14]

[Executive Summary & Fiscal Year 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Fiscal%20Year%202025%20Highlights) AAR's strong financial performance and strategic achievements for Q4 and full fiscal year 2025 are summarized [Fourth Quarter Fiscal Year 2025 Highlights](index=1&type=section&id=FOURTH%20QUARTER%20FISCAL%20YEAR%202025%20HIGHLIGHTS) AAR reported strong Q4 FY2025 results with double-digit sales and earnings growth, driven by robust demand Q4 FY2025 Key Financial Highlights (YoY Change) | Metric | Q4 FY2025 | Change vs. Q4 FY2024 | | :-------------------- | :---------- | :------------------- | | Sales | $755 million | +15% | | GAAP EPS | $0.95 | - | | Adjusted diluted EPS | $1.16 | +32% | | GAAP Net income | $34 million | - | | Adjusted EBITDA | $91 million | +19% | | Adjusted EBITDA margin | 12.4% | +0.8 percentage points (from 11.6%) | - Adjusted sales were up **12% organically** due to strong demand across both commercial and government end-markets[5](index=5&type=chunk) - New parts Distribution activities led with over **20% organic increase in sales**, driven by market growth and market share gains[5](index=5&type=chunk) [Fiscal Year 2025 Highlights](index=1&type=section&id=FISCAL%20YEAR%202025%20HIGHLIGHTS) AAR achieved record FY2025 sales and profitability, advancing strategic objectives and reducing net leverage FY2025 Key Financial Highlights (YoY Change) | Metric | FY2025 | Change vs. FY2024 | | :-------------------- | :---------- | :------------------- | | Sales | $2.8 billion | +20% | | GAAP EPS | $0.35 | - | | Adjusted diluted EPS | $3.91 | +17% | | GAAP Net income | $13 million | - | | Adjusted EBITDA | $324 million | +34% | | Adjusted EBITDA margin | 11.8% | +1.4 percentage points (from 10.4%) | - Substantially completed the integration of the Product Support acquisition and continued to optimize the portfolio with the divestiture of the Landing Gear Overhaul business[3](index=3&type=chunk) - Net leverage reduced to **2.72x** by the end of the fiscal year[3](index=3&type=chunk) [Recent Business Updates](index=2&type=section&id=RECENT%20UPDATES) This section details AAR's recent new business wins and portfolio optimization efforts [New Business Wins](index=2&type=section&id=NEW%20BUSINESS) AAR secured new business, including Trax software implementations, a U.S. Navy contract, and a DLA alliance - Implementation of Trax's eMRO and eMobility solutions across Delta TechOps line maintenance network[8](index=8&type=chunk) - License agreements for Trax software with Amerijet International Airlines and SIA Engineering Company's heavy maintenance facility in Malaysia[8](index=8&type=chunk) - Joint venture with KIRA Aviation Services awarded an E-6B Mercury pilot training contract from the U.S. Navy[8](index=8&type=chunk) - Signed a new parts Distribution Supply Chain Alliance charter with the U.S. Defense Logistics Agency (DLA)[8](index=8&type=chunk) [Portfolio Optimization](index=2&type=section&id=PORTFOLIO%20UPDATE) AAR completed Product Support acquisition integration and divested its Landing Gear Overhaul business for $48 million - Substantially completed the integration and site consolidation of the Product Support acquisition[8](index=8&type=chunk) - Completed the sale of the Landing Gear Overhaul business for **$48 million**[8](index=8&type=chunk) [Financial Results - Fourth Quarter Fiscal Year 2025](index=3&type=section&id=FOURTH%20QUARTER%20FISCAL%20YEAR%202025%20RESULTS) This section details AAR's consolidated financial performance for the fourth quarter of fiscal year 2025 [Consolidated Sales Performance](index=3&type=section&id=Consolidated%20fourth%20quarter%20sales) Consolidated sales increased 15% to $754.5 million, driven by strong demand and a significant asset sale Q4 Sales Performance (YoY) | Metric | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | Change | | :-------------------------- | :------------------- | :------------------- | :----- | | Consolidated Sales | $754.5 | $656.5 | +15% | | Commercial Customer Sales | +$56.5 | - | +12% | | Government Customer Sales | - | - | +21% | - Sales in Q4 FY2025 included **$18.7 million** from the sale of certain rotable assets to a significant regional airline customer[9](index=9&type=chunk) - Commercial customers represented **69% of consolidated sales** in Q4 FY2025, down from 70% in the prior year quarter[9](index=9&type=chunk) [Net Income and EPS](index=3&type=section&id=The%20Company%20reported%20net%20income) Net income rose to $34.0 million, with GAAP EPS of $0.95 and adjusted diluted EPS of $1.16 Q4 Net Income and EPS (YoY) | Metric | Q4 FY2025 | Q4 FY2024 | | :-------------------- | :---------- | :---------- | | Net income | $34.0 million | $9.1 million | | GAAP diluted EPS | $0.95 | $0.26 | | Adjusted diluted EPS | $1.16 | $0.88 | [Operating Expenses and Margins](index=3&type=section&id=Selling%2C%20general%2C%20and%20administrative%20expenses) Operating expenses decreased, improving operating margins to 9.7% and adjusted operating margin to 10.5% Q4 Operating Expenses (YoY) | Expense Category | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | | :------------------------------------ | :------------------- | :------------------- | | Selling, general, and administrative | $77.4 | $94.8 | | Acquisition, amortization, integration | $0.3 | $17.1 | Q4 Operating Margins (YoY) | Margin Type | Q4 FY2025 | Q4 FY2024 | | :-------------------- | :-------- | :-------- | | Operating margins | 9.7% | 5.0% | | Adjusted operating margin | 10.5% | 9.3% | - Adjusted operating margin increased primarily due to strong growth and favorable mix in Parts Supply[12](index=12&type=chunk) [Cash Flow and Leverage](index=4&type=section&id=Cash%20flow%20provided%20by%20operating%20activities) Operating cash flow increased to $51.4 million, reducing net debt to $880.5 million and leverage to 2.72x Q4 Cash Flow and Leverage | Metric | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | | :------------------------------------ | :------------------- | :------------------- | | Cash flow from operating activities | $51.4 | $24.5 | | Adjusted cash flow from operating activities (excluding AR financing) | $50.3 | - | | Net debt (as of May 31, 2025) | $880.5 | - | | Net leverage (as of May 31, 2025) | 2.72x | - | - Net leverage decreased from **3.58x to 2.72x** since the Product Support acquisition[15](index=15&type=chunk) [Financial Results - Fiscal Year 2025](index=4&type=section&id=FISCAL%20YEAR%202025%20RESULTS) This section details AAR's consolidated financial performance for the full fiscal year 2025 [Consolidated Sales Performance](index=4&type=section&id=Full%20fiscal%20year%202025%20consolidated%20sales) FY2025 consolidated sales reached $2.8 billion, a 20% increase, driven by acquisition and parts distribution FY2025 Sales Performance (YoY) | Metric | FY2025 | FY2024 | | :-------------------------- | :---------- | :---------- | | Consolidated Sales | $2.8 billion | $2,318.9 million | | YoY Growth | +20% | - | | Commercial Sales % of Total | 71% | 71% | - Sales growth resulted from the Product Support acquisition and increased volumes in new parts distribution activities[15](index=15&type=chunk) [Operating Margins](index=4&type=section&id=Operating%20margins%20were%206.7%25%20for%20the%20full%20year) Operating margins improved to 6.7% for FY2025, with adjusted operating margin increasing to 9.6% FY2025 Operating Margins (YoY) | Margin Type | FY2025 | FY2024 | | :-------------------- | :-------- | :-------- | | Operating margins | 6.7% | 5.6% | | Adjusted operating margin | 9.6% | 8.3% | - Improved adjusted margins were primarily driven by the favorable contribution from the Product Support business and growth in Parts Supply[16](index=16&type=chunk) [Net Income and EPS](index=4&type=section&id=Full%20fiscal%20year%202025%20net%20income) FY2025 net income was $12.5 million ($0.35 GAAP EPS), impacted by charges; adjusted EPS rose to $3.91 FY2025 Net Income and EPS (YoY) | Metric | FY2025 | FY2024 | | :-------------------- | :---------- | :---------- | | Net income | $12.5 million | $46.3 million | | GAAP diluted EPS | $0.35 | $1.29 | | Adjusted diluted EPS | $3.91 | $3.33 | - FY2025 results included after-tax charges of **$115.0 million** associated with the sale of the Landing Gear Overhaul business and FCPA settlement and related costs[17](index=17&type=chunk) [Cash Flow](index=4&type=section&id=Cash%20flow%20provided%20by%20operating%20activities%20was%20%2436.1%20million) Cash flow from operating activities for FY2025 was $36.1 million, or $28.5 million excluding AR financing FY2025 Cash Flow from Operating Activities | Metric | FY2025 (Millions) | | :--------------------------------------- | :---------------- | | Cash flow provided by operating activities | $36.1 | | Excluding accounts receivable financing program | $28.5 | [Fiscal Year 2026 Outlook](index=5&type=section&id=Holmes%20concluded) This section outlines AAR's strategic expectations and growth drivers for fiscal year 2026 - Expects to continue to gain market share in Parts Supply and expand both capabilities and footprint in Repair & Engineering[19](index=19&type=chunk) - Expects Trax to continue its growth trajectory by winning more business and upgrading existing customers to the latest offerings[19](index=19&type=chunk) - Remains focused on converting a large pipeline of government opportunities to new business wins[19](index=19&type=chunk) - Anticipates driving further growth and margin expansion in fiscal year 2026[19](index=19&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section provides an overview of AAR's business and details for the conference call [About AAR](index=5&type=section&id=About%20AAR) AAR is a global aerospace and defense aftermarket solutions company serving commercial and government customers - AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries[22](index=22&type=chunk) - Supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services[22](index=22&type=chunk) [Conference Call Details](index=5&type=section&id=Conference%20call%20information) A conference call to discuss results was held on July 16, 2025, with webcast and replay options - A conference call to discuss the results was held on Wednesday, July 16, 2025, at 4 p.m. Central time[20](index=20&type=chunk) - A listen-only webcast and slides were accessible online, with participants able to join via phone by registering[20](index=20&type=chunk) - A replay of the conference call will be available for on-demand listening for approximately one year[21](index=21&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements and associated risks regarding AAR's future performance - This press release contains forward-looking statements reflecting management's expectations about future conditions, including demand, market position, business relationships, acquisitions, margin improvement, sales growth, earnings, debt management, and capital allocation[24](index=24&type=chunk) - Forward-looking statements are based on beliefs, assumptions, and estimates, and are subject to risks and uncertainties that could cause actual results to differ materially[26](index=26&type=chunk) - Risks include factors affecting the commercial aviation industry, government sales, cost overruns, competition, international operations, inability to integrate acquisitions, cyber threats, and regulatory non-compliance[26](index=26&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents AAR's condensed consolidated statements of income, balance sheets, and cash flows [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20consolidated%20statements%20of%20income) The statements detail AAR's Q4 and FY2025 financial performance, including sales, gross profit, and net income Condensed Consolidated Statements of Income (Millions, except per share data) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------------- | :-------- | :-------- | :------- | :------- | | Sales | $754.5 | $656.5 | $2,780.5 | $2,318.9 | | Cost of sales | 604.3 | 529.2 | 2,252.8 | 1,876.6 | | Gross profit | 150.2 | 127.3 | 527.7 | 442.3 | | Operating income | 73.0 | 32.6 | 185.2 | 129.2 | | Net income | $34.0 | $9.1 | $12.5 | $46.3 | | Earnings per share – Diluted | $0.95 | $0.26 | $0.35 | $1.29 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20consolidated%20balance%20sheets) The balance sheets present AAR's financial position as of May 31, 2025, and 2024, outlining assets and liabilities Condensed Consolidated Balance Sheets (Millions) | Metric | May 31, 2025 | May 31, 2024 | | :-------------------------------- | :----------- | :----------- | | Cash and cash equivalents | $96.5 | $85.8 | | Total current assets | 1,510.6 | 1,389.6 | | Total assets | $2,844.6 | $2,770.0 | | Total current liabilities | $554.7 | $466.9 | | Long-term debt | 968.0 | 985.4 | | Total liabilities | 1,633.0 | 1,580.2 | | Equity | 1,211.6 | 1,189.8 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows) The cash flow statements detail cash generated and used by AAR's operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Millions) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :--------------------------------------- | :-------- | :-------- | :------- | :------- | | Net cash provided by operating activities | $51.4 | $24.5 | $36.1 | $43.6 | | Net cash provided by (used in) investing activities | $27.6 | $(731.7) | $10.7 | $(758.5) | | Net cash provided by (used in) financing activities | $(70.7) | $719.7 | $(33.7) | $729.2 | | Increase in cash and cash equivalents | $8.3 | $12.5 | $13.1 | $14.3 | [Segment Information](index=10&type=section&id=Segment%20Information) This section provides a breakdown of AAR's third-party sales and operating income by segment [Third-Party Sales by Segment](index=10&type=section&id=Third-party%20sales%20by%20segment) Third-party sales grew across all segments in Q4 and FY2025, with Parts Supply and Repair & Engineering as key drivers Third-Party Sales by Segment (Millions) | Segment | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------- | :-------- | :-------- | :------- | :------- | | Parts Supply | $305.5 | $260.3 | $1,099.6 | $967.0 | | Repair & Engineering | 222.6 | 216.4 | 884.9 | 640.1 | | Integrated Solutions | 200.1 | 163.5 | 695.3 | 641.9 | | Expeditionary Services | 26.3 | 16.3 | 100.7 | 69.9 | | **Total Sales** | **$754.5** | **$656.5** | **$2,780.5** | **$2,318.9** | [Operating Income (Loss) by Segment](index=10&type=section&id=Operating%20income%20(loss)%20by%20segment) Operating income significantly increased across most segments in Q4 and FY2025, with Parts Supply showing strongest growth Operating Income (Loss) by Segment (Millions) | Segment | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------- | :-------- | :-------- | :------- | :------- | | Parts Supply | $49.7 | $35.2 | $156.8 | $109.8 | | Repair & Engineering | 18.3 | 20.6 | 81.2 | 52.5 | | Integrated Solutions | 12.6 | 1.2 | 36.4 | 23.9 | | Expeditionary Services | 3.2 | 0.4 | 10.1 | 3.5 | | **Total Segment Operating Income** | **83.8** | **57.4** | **284.5** | **189.7** | | Corporate and other | (10.8) | (24.8) | (99.3) | (60.5) | | **Consolidated Operating Income** | **$73.0** | **$32.6** | **$185.2** | **$129.2** | [Non-GAAP Financial Measures Reconciliation](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP financial measures to GAAP, providing a clearer view of core operating performance [Overview of Non-GAAP Measures](index=10&type=section&id=Non-GAAP%20Measures%20Overview) AAR uses non-GAAP measures like adjusted net income, EPS, operating margin, cash flow, EBITDA, and net debt to clarify core performance - Non-GAAP financial measures are used to illustrate core operating performance, cash flows, and leverage, unaffected by certain items management does not believe are indicative of ongoing activities[36](index=36&type=chunk) - Adjustments include costs associated with FCPA matters, acquisition activity, pension settlement charges, legal judgments, contract termination/restructuring costs, and losses related to business exits[37](index=37&type=chunk) - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, amortization, stock-based compensation, and items of an unusual nature[38](index=38&type=chunk) [Adjusted Net Income Reconciliation](index=11&type=section&id=Adjusted%20net%20income) Reconciliation tables show adjustments to GAAP net income, highlighting the impact of acquisition, FCPA, and business exit charges Adjusted Net Income Reconciliation (Millions) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------- | :-------- | :-------- | :------- | :------- | | Net income (GAAP) | $34.0 | $9.1 | $12.5 | $46.3 | | Acquisition, integration, and amortization expenses | 3.1 | 18.6 | 26.7 | 42.8 | | Losses related to sale and exit of business/joint venture, net | 7.1 | 0.2 | 70.3 | 2.8 | | FCPA settlement and investigation costs | –– | 4.8 | 65.3 | 10.5 | | Tax effect on adjustments | (3.5) | (6.7) | (25.1) | (27.2) | | **Adjusted net income** | **$41.5** | **$31.3** | **$139.6** | **$118.4** | [Adjusted Diluted EPS Reconciliation](index=11&type=section&id=Adjusted%20diluted%20earnings%20per%20share) Reconciliation tables show adjustments to GAAP diluted EPS, reflecting the impact of various non-GAAP items Adjusted Diluted Earnings Per Share Reconciliation | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :--------------------------------------- | :-------- | :-------- | :------- | :------- | | Diluted earnings per share (GAAP) | $0.95 | $0.26 | $0.35 | $1.29 | | Acquisition, integration, and amortization expenses | 0.09 | 0.52 | 0.74 | 1.21 | | Losses related to sale and exit of business/joint venture, net | 0.20 | 0.01 | 1.97 | 0.07 | | FCPA settlement and investigation costs | –– | 0.14 | 1.84 | 0.29 | | Tax effect on adjustments | (0.10) | (0.20) | (0.70) | (0.76) | | **Adjusted diluted earnings per share** | **$1.16** | **$0.88** | **$3.91** | **$3.33** | [Adjusted Operating Margin Reconciliation](index=12&type=section&id=Adjusted%20operating%20margin) Adjusted operating margin reconciliation details adjustments to sales and operating income, showing improved margins Adjusted Operating Margin Reconciliation (Millions) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------- | :-------- | :-------- | :------- | :------- | | Sales (GAAP) | $754.5 | $656.5 | $2,780.5 | $2,318.9 | | Adjusted sales | $735.8 | $658.8 | $2,748.3 | $2,321.2 | | Operating income (GAAP) | $73.0 | $32.6 | $185.2 | $129.2 | | Adjusted operating income | $76.9 | $61.3 | $265.1 | $192.9 | | Operating margin (GAAP) | 9.7% | 5.0% | 6.7% | 5.6% | | **Adjusted operating margin** | **10.5%** | **9.3%** | **9.6%** | **8.3%** | [Adjusted Cash Flow Provided by Operating Activities Reconciliation](index=12&type=section&id=Adjusted%20cash%20flow%20provided%20by%20operating%20activities) Reconciliation of cash flow from operating activities shows adjustments for AR financing, resulting in adjusted cash flow Adjusted Cash Flow Provided by Operating Activities Reconciliation (Millions) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :--------------------------------------- | :-------- | :-------- | :------- | :------- | | Cash flow provided by operating activities (GAAP) | $51.4 | $24.5 | $36.1 | $43.8 | | Amounts outstanding on accounts receivable financing program: Beginning of period | 20.2 | 13.7 | 13.7 | 12.8 | | Amounts outstanding on accounts receivable financing program: End of period | (21.3) | (13.7) | (21.3) | (13.7) | | **Adjusted cash flow provided by operating activities** | **$50.3** | **$24.5** | **$28.5** | **$42.9** | [Adjusted EBITDA and Net Debt Reconciliation](index=13&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA significantly increased for Q4 and FY2025, with net debt reduced to $880.5 million and a 2.72x leverage ratio Adjusted EBITDA Reconciliation (Millions) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------- | :-------- | :-------- | :------- | :------- | | Net income (GAAP) | $34.0 | $9.1 | $12.5 | $46.3 | | Income tax expense | 13.6 | 4.5 | 26.4 | 12.0 | | Interest expense, net | 18.4 | 18.7 | 73.6 | 41.0 | | Depreciation and amortization | 13.7 | 15.3 | 55.2 | 41.2 | | Stock-based compensation | 4.3 | 3.8 | 19.9 | 15.3 | | Acquisition and integration expenses (benefit) | (0.9) | 14.6 | 10.8 | 29.7 | | Losses related to sale and exit of business/joint venture, net | 7.1 | 0.2 | 70.3 | 2.8 | | FCPA settlement and investigation costs | –– | 4.8 | 65.3 | 10.5 | | **Adjusted EBITDA** | **$90.9** | **$76.4** | **$324.2** | **$242.4** | | Adjusted EBITDA margin | 12.4% | 11.6% | 11.8% | 10.4% | Net Debt and Net Debt to Adjusted EBITDA (Millions) | Metric | May 31, 2025 | May 31, 2024 | | :-------------------------- | :----------- | :----------- | | Total debt | $977.0 | $997.0 | | Less: Cash and cash equivalents | (96.5) | (85.8) | | **Net debt** | **$880.5** | **$911.2** | | Adjusted EBITDA for the year ended | $324.2 | $242.4 | | **Net debt to Adjusted EBITDA** | **2.72** | **3.76** |

Core Insights - AAR CORP. reported record sales and profitability for fiscal year 2025, achieving a 20% increase in consolidated sales to $2.8 billion compared to fiscal year 2024 [2][13] - The company completed the integration of the Product Support acquisition and divested its Landing Gear Overhaul business for $48 million, optimizing its portfolio [2][6] - AAR's adjusted EBITDA grew by 34% year-over-year, reflecting improved margins and operational efficiency [5][15] Fourth Quarter Fiscal Year 2025 Highlights - Fourth quarter sales increased by 15% to $754.5 million, with adjusted diluted EPS rising 32% to $1.16 [5][8] - Adjusted EBITDA for the fourth quarter was $91 million, up 19%, with an adjusted EBITDA margin of 12.4%, an increase from 11.6% [5][10] - Sales to commercial customers rose by 12%, while sales to government customers increased by 21% [7][12] Fiscal Year 2025 Highlights - Full fiscal year net income was $12.5 million, or $0.35 per diluted share, down from $46.3 million in fiscal year 2024 [15][25] - Adjusted diluted EPS for the year was $3.91, compared to $3.33 in the previous year, indicating improved operating efficiency [15][36] - Operating margins improved to 6.7% from 5.6% in fiscal year 2024, with adjusted operating margins increasing to 9.6% from 8.3% [14][15] Recent Updates - AAR implemented Trax's eMRO and eMobility solutions across Delta TechOps and secured new license agreements for Trax software [6][17] - The company signed a new parts Distribution Supply Chain Alliance charter with the U.S. Defense Logistics Agency [6] - AAR's net leverage decreased from 3.58x to 2.72x, reflecting a stronger balance sheet and reduced debt [12][13] Financial Performance - Selling, general, and administrative expenses decreased to $77.4 million from $94.8 million in the prior year quarter [9] - Cash flow from operating activities for the fourth quarter was $51.4 million, compared to $24.5 million in the prior year quarter [12][27] - As of May 31, 2025, net debt stood at $880.5 million, down from $911.2 million a year earlier [12][38]

Core Concept - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: AIR Stock Analysis - AIR (AAR) has shown a four-week price change of 8.4%, indicating growing investor interest [4] - Over the past 12 weeks, AIR's stock price has increased by 44.2%, with a beta of 1.44, suggesting it moves 44% more than the market [5] - AIR has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - AIR is trading at a Price-to-Sales ratio of 0.99, suggesting it is undervalued at 99 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides AIR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in identifying potential winning stocks [9]

Core Insights - Aerospace-Defense Equipment stocks are expected to benefit from strategic mergers and acquisitions, enhancing operational scale and market presence, despite ongoing supply-chain challenges affecting aircraft deliveries and profitability [1][3][5]. Industry Overview - The Zacks Aerospace-Defense Equipment industry includes firms manufacturing essential components for aerospace and defense, such as aerostructures, propulsion systems, and defense electronics, while also providing aftermarket support services [2]. Trends Shaping the Industry - Recent mergers and acquisitions, such as TransDigm's $110 million acquisition of Servotronics and Teledyne's acquisition of Maretron assets, are expected to improve economies of scale and revenue growth [3]. - Global air passenger traffic is projected to grow by 5.8% year-over-year in 2025, indicating strong growth potential for aerospace-defense equipment stocks, particularly in commercial aviation [4]. Supply Chain Challenges - Supply-chain disruptions are impacting aircraft deliveries, with current deliveries 30% below peak levels, contributing to a backlog of 17,000 aircraft, which represents an 18% shortfall of the active global fleet [5]. Industry Performance - The Zacks Aerospace-Defense Equipment industry has outperformed both the S&P 500 composite and its sector, with a collective stock surge of 46.2% over the past year compared to 27.1% for the Aerospace sector and 10.9% for the S&P 500 [8]. Valuation Metrics - The industry is currently trading at an EV/Sales ratio of 11.14X, significantly higher than the S&P 500's 5.41X and the sector's 3.27X, indicating a premium valuation for capital-intensive aerospace-defense stocks [11]. Notable Companies - **Heico Corp.**: Expected to see a 13.3% sales improvement in fiscal 2025, with a long-term earnings growth rate of 17.6% [15][16]. - **AAR Corp.**: Anticipated 17.2% sales growth in fiscal 2025, with a Zacks Rank of 2 (Buy) [17][18]. - **Curtiss-Wright**: Projected 8.8% sales growth in fiscal 2025, recently awarded an $80 million contract by the USAF [20][22].

Core Viewpoint - AAR CORP. is set to release its financial results for the fourth quarter of fiscal year 2025 on July 16, 2025, after the market closes, indicating a focus on transparency and communication with investors [1]. Financial Results Announcement - The financial results will cover the period ending May 31, 2025, highlighting the company's performance in the aviation services sector [1]. - AAR will hold a conference call on July 16, 2025, at 4 p.m. Central time to discuss the results, providing an opportunity for stakeholders to engage directly with the company's management [2]. Conference Call Details - The conference call will be accessible via a listen-only webcast and participants can join by registering online to receive a dial-in number and unique PIN [2]. - A replay of the conference call will be available shortly after its completion and will remain accessible for approximately one year, ensuring that interested parties can review the information at their convenience [3]. Company Overview - AAR is a global aerospace and defense aftermarket solutions company, operating in over 20 countries and headquartered in the Chicago area [4]. - The company supports both commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services [4].

Core Insights - AAR CORP.'s subsidiary Trax has been selected to modernize Delta TechOps' maintenance and engineering systems, indicating a significant partnership in aviation maintenance technology [1][2] - The modernization will involve replacing legacy systems with Trax's eMRO and eMobility solutions, enhancing efficiency and operational performance for over 6,000 technicians [2][4] - AAR's strategic investments in Trax have positioned the company to support large airlines and diverse fleets, showcasing its growth and capability in the aviation sector [3][4] Company Overview - AAR CORP. is a global aerospace and defense aftermarket solutions provider, operating in over 20 countries and supporting both commercial and government customers through various segments [4] - Trax, as a wholly-owned subsidiary of AAR, specializes in aviation maintenance mobile and cloud products, offering comprehensive software solutions for aircraft maintenance [5] - Delta TechOps, the maintenance division of Delta Air Lines, provides extensive maintenance, repair, and overhaul services, emphasizing safety, quality, and innovation in aviation maintenance [6]

Group 1 - The Aerospace Forum aims to identify investment opportunities in the aerospace, defense, and airline sectors, leveraging data analytics for informed decision-making [2] - The industry is characterized by significant growth prospects, with developments that can impact investment theses [2] - The investing group provides direct access to data analytics monitors, enhancing the analytical capabilities for investors [2] Group 2 - The article emphasizes the importance of data-informed analysis in understanding the complexities of the aerospace industry [2] - There is a focus on the potential for growth within the aerospace and defense sectors, suggesting a favorable investment environment [2]

WOOD DALE, Ill., May 6, 2025 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced today that the Company's senior management will participate in the upcoming conferences listed below. 2025 Wells Fargo Industrials & Materials Conference in Chicago on June 11th Sean Gillen, AAR's Senior Vice President and Chief Financial Officer, will participate in one-on-one investor meetings. For more information on these conference ...

Core Insights - The global aerospace services sector is experiencing significant growth, driven by rising air traffic, increased aircraft utilization, and a booming Maintenance, Repair, and Overhaul (MRO) market, benefiting companies like AerSale Corporation (ASLE) and AAR Corp. (AIR) [1][2] Summary of AerSale (ASLE) - Recent achievements include strategic investments, such as the opening of a new MRO facility in Millington, TN, and the expansion of operations in Miami, which are expected to significantly contribute to future revenues [3] - In January 2025, AerSale acquired a parts portfolio from the Sanad Group, enhancing its inventory with high-demand components for popular aircraft models, thereby expanding its customer base [4] - Financial stability is highlighted by cash and cash equivalents of $12 million and low debt levels, indicating a strong solvency position that allows for investment in new products and shareholder returns [5][6] - Challenges include reliance on feedstock availability for Used Serviceable Material (USM) sales, which could constrain revenue and margins, and potential slow commercial adoption of innovations like AerAware [7] Summary of AAR Corp. (AIR) - Recent achievements include record MRO spending benefiting AIR, with notable contracts such as Amerijet International Airlines selecting AIR's subsidiary Trax for maintenance operations [8][9] - Financial stability is characterized by cash and cash equivalents of $101 million, but long-term debt of $1,022 million raises concerns about cash flow and investment capacity [10] - Challenges include ongoing supply-chain issues that may lead to production delays and sluggish cash flow, impacting the company's ability to meet growing demand [12] Comparative Analysis - Zacks Consensus Estimates indicate that AerSale's 2025 sales and earnings per share (EPS) are expected to improve by 6.8% and 288.9%, respectively, while AIR's sales are projected to grow by 17.2% and EPS by 12.6% [13][14] - Stock price performance shows ASLE has outperformed AIR over the past three months and year, with ASLE down 4.8% compared to AIR's 23.6% decline [15] - Valuation metrics reveal AerSale's forward earnings multiple at 8.98X is more attractive than AIR's 11.94X, suggesting a better investment opportunity [16] Conclusion - AerSale is positioned as the more compelling investment choice for 2025 due to its attractive valuation, consistent outperformance, and diversified business model, while AIR faces challenges from supply-chain issues and declining earnings estimates [19][20]