Core Viewpoint - AAR Corp. reported strong second-quarter fiscal 2025 earnings, surpassing estimates and showing significant year-over-year growth in sales and adjusted earnings [2][4]. Financial Performance - AAR's adjusted earnings for Q2 fiscal 2025 were 90 cents per share, exceeding the Zacks Consensus Estimate of 83 cents by 8.4% and improving 11.1% from the previous year [2][3]. - The company generated net sales of $686.1 million, beating the Zacks Consensus Estimate of $652.6 million by 5.1% and increasing 25.8% from $545.4 million in the same quarter last year [4]. Segment Performance - Sales in the Parts Supply segment reached $273.7 million, up 20.3% year over year [5]. - Repair & Engineering sales were $228.8 million, reflecting a 57.4% increase from the prior-year period [5]. - Integrated Solutions sales amounted to $163.4 million, up 4.3% from the year-ago quarter [5]. - Expeditionary Services recorded sales of $20.2 million, up 27.8% year over year [5]. Operational Metrics - AAR's adjusted operating margin improved from 8.1% to 9.2%, driven by enhanced profitability in the Repair & Engineering segment [6]. - Selling, general and administrative expenses were $133.1 million, compared to $65.7 million a year ago [6]. - Net interest expenses for the quarter totaled $18.8 million, up from $5.6 million in the previous year [6]. Cash Flow and Debt - 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 [7]. - Long-term debt increased to $986.7 million from $985.4 million during the same period [7]. - 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 prior year [7]. Market Outlook - AAR has a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [10].
AAR (AIR) Up 1.3% Since Last Earnings Report: Can It Continue?