Core Insights - AAR Corp. reported fourth-quarter fiscal 2025 adjusted earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $1.00 by 16% and improving 31.8% from the previous year's 88 cents per share [1][7] - The company achieved fiscal 2025 adjusted earnings of $3.91 per share, up from $3.33 in the prior year, driven by improved operating efficiency and surpassing the Zacks Consensus Estimate of $3.75 per share [2] Financial Performance - AAR generated net sales of $754.5 million in the fourth quarter, exceeding the Zacks Consensus Estimate of $691 million by 9.2% and increasing 14.9% from $656.5 million in the same quarter last year [3][7] - Total revenues for fiscal 2025 reached $2.78 billion, up from $2.32 billion in fiscal 2024, and also surpassed the Zacks Consensus Estimate of $2.72 billion [3] Segment Performance - In the fourth quarter, the Parts Supply segment reported sales of $305.5 million, a 17.4% increase year over year [4] - Repair & Engineering sales were $222.6 million, up 2.9% from the prior year [4] - Integrated Solutions sales reached $200.1 million, a 22.4% increase from the previous year [4] - Expeditionary Services recorded sales of $26.3 million, up 61.3% year over year [4] Operational Efficiency - AAR's adjusted operating margin improved from 9.3% to 10.5%, attributed to strong growth and a favorable mix in the Parts Supply segment [5][7] - Selling, general and administrative expenses decreased to $77.4 million from $94.8 million a year ago [5] - Net interest expenses for the quarter were $18.4 million, slightly down from $18.7 million in the prior year [5] Cash and Debt Position - As of May 31, 2025, AAR's cash and cash equivalents were $96.5 million, up from $85.8 million a year earlier [6] - The company's long-term debt decreased to $968 million from $985.4 million as of May 31, 2024 [6] Cash Flow - In fiscal 2025, net cash provided from operating activities was $36.1 million, compared to $43.6 million in the previous year [8]