Core Insights - AAR Corp. reported third-quarter fiscal 2025 adjusted earnings of 99 cents per share, exceeding the Zacks Consensus Estimate of 96 cents by 3.1% and showing a 16.5% improvement from the previous year's 85 cents [1][2] - The company generated net sales of $678.2 million, which was 3% below the Zacks Consensus Estimate of $699 million but represented a 19.5% increase from $567.3 million in the same quarter last year [3] - The year-over-year sales growth was primarily driven by the acquisition of Product Support and strong demand in the Parts Supply segment [3] Financial Performance - The Parts Supply segment reported sales of $270.7 million, an increase of 11.7% year over year, while Repair & Engineering sales rose 53.3% to $215.9 million [4] - Integrated Solutions sales decreased by 1.6% to $162.9 million, and Expeditionary Services saw a 53.5% increase to $28.7 million [4] - AAR's adjusted operating margin improved from 8.3% to 9.7%, attributed to enhanced profitability in the Repair & Engineering segment [5] Expenses and Debt - Selling, general and administrative expenses decreased to $61.3 million from $77 million a year ago [5] - Net interest expenses rose to $18.1 million from $11.3 million in the prior year, mainly due to increased debt levels from the Product Support acquisition [6] - As of February 28, 2025, AAR's cash and cash equivalents were $84.4 million, slightly down from $85.8 million as of May 31, 2024, while long-term debt increased to $1.02 billion from $0.985 billion [7] Cash Flow - In the first nine months of fiscal 2025, AAR reported net cash used in operating activities of ($15.3) million, compared to a net cash flow of $19.3 million in the same period last year [7]
AAR Q3 Earnings Surpass Estimates, Sales Increase Year Over Year