Core Insights - AAR Corp. reported adjusted earnings of 90 cents per share for Q2 fiscal 2025, exceeding the Zacks Consensus Estimate of 83 cents by 8.4% and showing an 11.1% improvement year-over-year [1] - The company experienced a GAAP loss of 87 cents per share, contrasting with earnings of 67 cents in the same quarter last year [1] Financial Performance - AAR generated net sales of $686.1 million in the quarter, surpassing the Zacks Consensus Estimate of $652.6 million by 5.1% and increasing 25.8% from $545.4 million in the prior-year quarter [3] - The growth in sales was driven by organic growth and increased commercial and government sales [3] Segment Performance - Parts Supply segment sales reached $273.7 million, up 20.3% year-over-year [4] - Repair & Engineering segment reported sales of $228.8 million, a significant increase of 57.4% from the previous year [4] - Integrated Solutions sales amounted to $163.4 million, reflecting a 4.3% increase year-over-year [4] - Expeditionary Services recorded sales of $20.2 million, up 27.8% from the prior-year period [4] Operational Metrics - Adjusted operating margin improved from 8.1% to 9.2%, primarily due to enhanced profitability in the Repair & Engineering segment [5] - Selling, general, and administrative expenses rose to $133.1 million compared to $65.7 million a year ago [5] - Net interest expenses for the quarter totaled $18.8 million, up from $5.6 million in the year-ago period [5] Financial Position - As of November 30, 2024, AAR's cash and cash equivalents were $61.7 million, down from $85.8 million as of May 31, 2024 [6] - Long-term debt increased to $986.7 million from $985.4 million as of May 31, 2024 [6] - Net cash flow from operating activities for the first six months of fiscal 2025 was $3.4 million, compared to a cash outflow of $1.3 million in the same period last year [6]
AAR Q2 Earnings Surpass Estimates, Sales Increase Year Over Year