AAR Corp shares soar 5% on robust Q2 outcomes

NEW YORK – AAR Corp (NYSE:AIR) shares jumped 5.3% in after-hours buying and selling on Tuesday after the aviation providers supplier reported fiscal second quarter outcomes that beat analyst expectations, pushed by sturdy demand throughout its industrial and authorities companies.

The Wooden Dale, Illinois-based firm posted adjusted earnings per share of $0.90 for the quarter ended November 30, surpassing the analyst consensus of $0.88. Income rose 26% year-over-year to $686.1 million, effectively above estimates of $654.18 million.

AAR noticed robust natural progress of 12% within the quarter, accelerating from 6% in Q1. The Elements Provide phase grew gross sales by 20%, whereas Restore & Engineering income surged 57% in comparison with final yr.

“AAR delivered one other strong quarter with document gross sales and improved margins,” stated CEO John M. Holmes. “We noticed 20% gross sales progress in our Elements Provide phase, led by a big growth in our industrial new elements distribution actions, and a return to progress in USM as excessive demand for engine and airframe elements continued.”

The corporate’s adjusted EBITDA margin expanded to 11.4% from 10.1% within the prior yr quarter. AAR expects continued margin growth in coming quarters because it optimizes its portfolio and drives efficiencies.

Wanting forward, Holmes stated AAR anticipates “continued robust gross sales progress within the second half of fiscal yr 2025” together with additional margin enhancements. The corporate stays on observe to cut back leverage following its latest Product Help acquisition.

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