AAR reports third quarter fiscal year 2025 results
AAR (NYSE: AIR) reported strong Q3 FY2025 results with sales reaching $678.2 million, a 20% increase year-over-year. The company achieved adjusted diluted EPS of $0.99, up 16%, and adjusted EBITDA of $81 million, a 39% increase with margin expanding to 12.0%.
Key segment performance showed Parts Supply sales up 12% and Repair & Engineering segment sales increasing 53% year-over-year. However, the company reported a GAAP net loss of $8.9 million due to a $63.7 million pre-tax charge related to the planned divestiture of its Landing Gear Overhaul business for $51 million.
Notable new business wins include exclusive distribution agreements with Chromalloy for PW4000 PMA parts and with Unison for DLA parts, plus agreements with Cebu Pacific Air for engine services and Cathay Pacific for Trax software. The company's net leverage improved from 3.58x to 3.06x over the past year.
AAR (NYSE: AIR) ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2025, con vendite che hanno raggiunto 678,2 milioni di dollari, un aumento del 20% rispetto all'anno precedente. L'azienda ha ottenuto un utile per azione diluito rettificato di 0,99 dollari, in crescita del 16%, e un EBITDA rettificato di 81 milioni di dollari, con un incremento del 39% e un margine che si espande al 12,0%.
Le prestazioni dei segmenti chiave hanno mostrato vendite di Parti di Ricambio in aumento del 12% e vendite nel segmento Riparazione e Ingegneria in crescita del 53% rispetto all'anno precedente. Tuttavia, l'azienda ha riportato una perdita netta GAAP di 8,9 milioni di dollari a causa di una spesa pre-tasse di 63,7 milioni di dollari relativa alla pianificata dismissione della sua attività di Revisione del Carrello di Atterraggio per 51 milioni di dollari.
Tra le nuove importanti acquisizioni commerciali ci sono accordi di distribuzione esclusiva con Chromalloy per i pezzi PMA PW4000 e con Unison per i pezzi DLA, oltre a contratti con Cebu Pacific Air per servizi ai motori e Cathay Pacific per il software Trax. Il rapporto di indebitamento netto dell'azienda è migliorato da 3,58x a 3,06x nell'ultimo anno.
AAR (NYSE: AIR) reportó resultados sólidos en el tercer trimestre del año fiscal 2025, con ventas que alcanzaron 678.2 millones de dólares, un aumento del 20% en comparación con el año anterior. La empresa logró un EPS diluido ajustado de 0.99 dólares, un incremento del 16%, y un EBITDA ajustado de 81 millones de dólares, un aumento del 39% con un margen que se expande al 12.0%.
El rendimiento de los segmentos clave mostró un aumento del 12% en las ventas de Suministro de Piezas y un incremento del 53% en las ventas del segmento de Reparación e Ingeniería en comparación con el año anterior. Sin embargo, la empresa reportó una pérdida neta GAAP de 8.9 millones de dólares debido a un cargo antes de impuestos de 63.7 millones de dólares relacionado con la planeada desinversión de su negocio de Revisión de Tren de Aterrizaje por 51 millones de dólares.
Entre las nuevas adquisiciones comerciales notables se incluyen acuerdos de distribución exclusiva con Chromalloy para piezas PMA PW4000 y con Unison para piezas DLA, además de acuerdos con Cebu Pacific Air para servicios de motores y Cathay Pacific para el software Trax. El apalancamiento neto de la empresa mejoró de 3.58x a 3.06x en el último año.
AAR (NYSE: AIR)는 2025 회계연도 3분기 실적을 발표하며 매출이 6억 7,820만 달러에 달해 전년 대비 20% 증가했다고 보고했습니다. 회사는 조정된 희석 주당순이익(EPS) 0.99달러를 기록했으며, 이는 16% 증가한 수치이며, 조정된 EBITDA는 8,100만 달러로 39% 증가하여 마진은 12.0%로 확대되었습니다.
주요 세그먼트 성과는 부품 공급 매출이 12% 증가하고 수리 및 엔지니어링 세그먼트 매출이 전년 대비 53% 증가한 것으로 나타났습니다. 그러나 회사는 5,100만 달러에 해당하는 착륙 기어 정비 사업의 계획된 매각과 관련하여 6,370만 달러의 세전 비용으로 인해 GAAP 기준으로 890만 달러의 순손실을 보고했습니다.
주목할 만한 신규 사업 성과로는 PW4000 PMA 부품에 대한 Chromalloy와의 독점 유통 계약, DLA 부품에 대한 Unison과의 계약, Cebu Pacific Air와의 엔진 서비스 계약 및 Cathay Pacific과의 Trax 소프트웨어 계약이 포함됩니다. 회사의 순부채 비율은 지난해 3.58배에서 3.06배로 개선되었습니다.
AAR (NYSE: AIR) a annoncé des résultats solides pour le troisième trimestre de l'exercice 2025, avec des ventes atteignant 678,2 millions de dollars, soit une augmentation de 20 % par rapport à l'année précédente. L'entreprise a réalisé un bénéfice par action dilué ajusté de 0,99 dollar, en hausse de 16 %, et un EBITDA ajusté de 81 millions de dollars, soit une augmentation de 39 % avec une marge s'élevant à 12,0 %.
Les performances des segments clés ont montré une augmentation de 12 % des ventes de Fournitures de Pièces et une augmentation de 53 % des ventes du segment Réparation et Ingénierie par rapport à l'année précédente. Cependant, l'entreprise a enregistré une perte nette GAAP de 8,9 millions de dollars en raison d'une charge avant impôts de 63,7 millions de dollars liée à la cession prévue de son activité de Révision de Train d'Atterrissage pour 51 millions de dollars.
Les nouvelles acquisitions commerciales notables comprennent des accords de distribution exclusifs avec Chromalloy pour des pièces PMA PW4000 et avec Unison pour des pièces DLA, ainsi que des accords avec Cebu Pacific Air pour des services moteurs et Cathay Pacific pour le logiciel Trax. L'endettement net de l'entreprise s'est amélioré, passant de 3,58x à 3,06x au cours de l'année écoulée.
AAR (NYSE: AIR) hat starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 gemeldet, mit einem Umsatz von 678,2 Millionen Dollar, was einem Anstieg von 20% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein angepasstes verwässertes EPS von 0,99 Dollar, was einem Anstieg von 16% entspricht, und ein angepasstes EBITDA von 81 Millionen Dollar, was einer Steigerung von 39% entspricht, wobei die Marge auf 12,0% anstieg.
Die Leistung der wichtigsten Segmente zeigte einen Anstieg der Teileversorgung um 12% und einen Anstieg der Verkaufszahlen im Bereich Reparatur und Ingenieurwesen um 53% im Vergleich zum Vorjahr. Das Unternehmen berichtete jedoch von einem GAAP-Nettoverlust von 8,9 Millionen Dollar aufgrund einer vorsteuerlichen Belastung von 63,7 Millionen Dollar im Zusammenhang mit der geplanten Veräußertung seines Geschäftsbereichs für die Überholung von Fahrwerken für 51 Millionen Dollar.
Zu den bemerkenswerten neuen Geschäftserfolgen gehören exklusive Vertriebsvereinbarungen mit Chromalloy für PW4000 PMA-Teile und mit Unison für DLA-Teile sowie Vereinbarungen mit Cebu Pacific Air für Triebwerksdienstleistungen und Cathay Pacific für die Trax-Software. Die Nettoverschuldung des Unternehmens verbesserte sich im vergangenen Jahr von 3,58x auf 3,06x.
- Sales increased 20% YoY to $678.2 million
- Adjusted EBITDA grew 39% with margin expanding to 12.0%
- Repair & Engineering segment sales up 53% YoY
- Parts Supply sales increased 12%
- Secured multiple new business contracts with major clients
- Net leverage improved from 3.58x to 3.06x
- GAAP net loss of $8.9 million due to Landing Gear business divestiture charge
- Operating cash flow negative at -$18.7 million
- Net debt remains high at $947.6 million
- Interest expense increased to $18.1 million from $11.3 million YoY
Insights
AAR Corp's Q3 FY2025 results demonstrate significant operational strength despite headline GAAP losses. The company delivered 20% year-over-year revenue growth to
The GAAP net loss of
Particularly impressive was the Repair & Engineering segment's
The company's deleveraging progress is notable, reducing net leverage from 3.58x to 3.06x within a year of the Product Support acquisition. While net debt remains elevated at
Strategically, the numerous new business wins (Chromalloy, Unison, Cebu Pacific, Cathay Pacific) validate AAR's value proposition and suggest continued momentum. The negative operating cash flow (
THIRD QUARTER FISCAL YEAR 2025 HIGHLIGHTS
(As compared to Q3 FY2024)
- Sales of
; increased$678 million 20% - GAAP EPS of
$(0.25) - Adjusted diluted EPS of
; increased$0.99 16% - GAAP Net loss of
$9 million - Adjusted EBITDA of
; increased$81 million 39% - Adjusted EBITDA margin increased to
12.0% from10.3%
MANAGEMENT COMMENTARY
"We delivered another strong quarter of significant year-over-year sales and earnings growth," said John M. Holmes, AAR's Chairman, President and Chief Executive Officer. "Sales were
Holmes continued, "We are particularly proud of the progress on EBITDA margin which expanded from
"Subsequent to the quarter, we announced several new business wins, including signing an exclusive agreement with Chromalloy to distribute their BELAC PW4000 PMA parts. We also added distribution support for select Unison parts under our Supplier Capabilities Contract with Defense Logistics Agency (DLA). These wins further validate our unique value proposition to both customers and suppliers as a leading independent distributor in the aviation aftermarket. Separately, and also subsequent to the quarter, we announced that Cathay Pacific selected Trax to be the maintenance operating system for the airline."
RECENT UPDATES
NEW BUSINESS
- Multi-year exclusive agreement with Unison to distribute select parts under AAR's Supplier Capabilities Contract with Defense Logistics Agency (DLA).
- Multi-year exclusive agreement with Chromalloy to distribute Parts Manufacturer Approval (PMA) turbine blades for the PW4000 engine through their wholly owned subsidiary, BELAC, LLC.
- Multi-year agreement with Cebu Pacific Air for CFM56 engine nacelle maintenance, repair and overhaul services for the airline's A320 fleet.
- Multi-year license agreement with Cathay Pacific for Trax software.
PORTFOLIO UPDATE
- Expected timing of the sale of our Landing Gear Overhaul business for
is set for the fourth quarter of fiscal year 2025. The divestiture is part of the Company's strategy to optimize its portfolio.$51 million
THIRD QUARTER FISCAL YEAR 2025 RESULTS
Consolidated third quarter sales increased
Third quarter results include a pre-tax charge of
Selling, general, and administrative expenses were
Operating margins were
Net interest expense for the quarter was
Cash flow used in operating activities was
Holmes concluded, "We are proud of the sales growth and significant margin expansion we delivered this quarter. Demand for our services remains very high and we anticipate our sales growth to continue. Additionally, we expect further margin expansion through growth in new parts Distribution, Trax, Airframe MRO efficiencies and the realization of Product Support synergies. We have reduced our net leverage from 3.58x at the time of the Product Support acquisition to 3.06x one year later. We expect further deleveraging in our fourth quarter and throughout our fiscal year 2026. We believe our continued growth, margin expansion, and disciplined capital allocation will drive additional value to shareholders."
Conference call information
On Thursday, March 27, 2025, at 4 p.m. Central time, AAR will hold a conference call to discuss the results. A listen-only webcast and slides can be accessed at https://edge.media-server.com/mmc/p/htoknnom. Participants may join via phone by registering at https://register-conf.media-server.com/register/BI146169c83ec044ccb681c3add61e0b60. Once registered, participants will receive a dial-in number and a unique PIN that will allow them to access the call.
A replay of the conference call will be available for on-demand listening shortly after the completion of the call at the webcast link and will remain available for approximately one year.
The slides are also available on AAR's website at https://www.aarcorp.com/en/investors/events-and-presentations/.
About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the
Contact: Denise Pacioni – Director of Investor Relations | +1-630-227-5830 | investors@aarcorp.com
This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, which reflect management's expectations about future conditions, including, but not limited to, continued demand in the commercial and government aviation markets, anticipated activities and benefits under extended, expanded and new services, supply and distribution agreements, contributions from our acquisitions, expected benefits from the pending sale of our Landing Gear Overhaul business, focus on process improvements and efficiencies, additional opportunities for margin expansion and portfolio optimization, continued sales growth, earnings performance, debt management, and capital allocation.
Forward-looking statements often address our expected future operating and financial performance and financial condition, or targets, goals, commitments, and other business plans, and often may also be identified because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms.
These forward-looking statements are based on the beliefs of Company management, as well as assumptions and estimates based on information available to the Company as of the dates such assumptions and estimates are made, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, depending on a variety of factors, including: (i) factors that adversely affect the commercial aviation industry; (ii) adverse events and negative publicity in the aviation industry; (iii) a reduction in sales to the
For a discussion of these and other risks and uncertainties, refer to our Annual Report on Form 10-K, Part I, "Item 1A, Risk Factors" and our other filings from time to time with the
AAR CORP. and subsidiaries | ||||||||
Condensed consolidated statements of operations (In millions except per share data - unaudited) |
Three months ended February 28/29, |
Nine months ended February 28/29, | ||||||
2025 | 2024 | 2025 | 2024 | |||||
Sales | ||||||||
Cost of sales | 546.5 | 457.0 | 1,648.5 | 1,347.4 | ||||
Gross profit | 131.7 | 110.3 | 377.5 | 315.0 | ||||
Provision for (Recovery of) credit losses | (0.2) | 0.1 | (0.3) | 0.5 | ||||
Selling, general, and administrative | 61.3 | 77.0 | 270.3 | 217.4 | ||||
Earnings (Loss) from joint ventures | 0.5 | (0.2) | 4.7 | (0.5) | ||||
Operating income | 71.1 | 33.0 | 112.2 | 96.6 | ||||
Losses related to sale and exit of business, net | (64.0) | (1.0) | (65.3) | (2.6) | ||||
Pension settlement charge | –– | –– | –– | (26.7) | ||||
Interest expense, net | (18.1) | (11.3) | (55.2) | (22.3) | ||||
Other expense, net | (0.1) | (0.2) | (0.4) | (0.3) | ||||
Income (Loss) before income tax expense (benefit) | (11.1) | 20.5 | (8.7) | 44.7 | ||||
Income tax expense (benefit) | (2.2) | 6.5 | 12.8 | 7.5 | ||||
Net income (loss) | ||||||||
Earnings (Loss) per share – Basic | ||||||||
Earnings (Loss) per share – Diluted | ||||||||
Share data used for earnings (loss) per share: | ||||||||
Weighted average shares outstanding – Basic | 35.4 | 34.8 | 35.4 | 34.9 | ||||
Weighted average shares outstanding – Diluted | 35.4 | 35.2 | 35.4 | 35.3 | ||||
AAR CORP. and subsidiaries | |||
Condensed consolidated balance sheets (In millions) | February 28, 2025 | May 31, 2024 | |
(unaudited) | |||
ASSETS | |||
Cash and cash equivalents | |||
Restricted cash | 16.5 | 10.3 | |
Accounts receivable, net | 312.5 | 287.2 | |
Contract assets | 153.3 | 123.2 | |
Inventories, net | 775.7 | 733.1 | |
Rotable assets and equipment on or available for lease | 30.1 | 81.5 | |
Assets held for sale | 80.5 | 12.9 | |
Other current assets | 81.8 | 55.6 | |
Total current assets | 1,534.8 | 1,389.6 | |
Property, plant, and equipment, net | 153.4 | 171.7 | |
Goodwill and intangible assets, net | 752.0 | 790.2 | |
Rotable assets supporting long-term programs | 183.8 | 166.3 | |
Operating lease right-of-use assets, net | 79.0 | 96.6 | |
Other non-current assets | 156.1 | 155.6 | |
Total assets | |||
LIABILITIES AND EQUITY | |||
Accounts payable | |||
Other current liabilities | 266.3 | 228.9 | |
Total current liabilities | 545.2 | 466.9 | |
Long-term debt | 1,022.3 | 985.4 | |
Operating lease liabilities | 67.6 | 80.3 | |
Other liabilities and deferred revenue | 41.4 | 47.6 | |
Total liabilities | 1,676.5 | 1,580.2 | |
Equity | 1,182.6 | 1,189.8 | |
Total liabilities and equity |
AAR CORP. and subsidiaries | |||||||
Condensed consolidated statements of cash flows (In millions – unaudited) | Three months February 28/29, | Nine months ended February 28/29, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Cash flows provided by (used in) operating activities: | |||||||
Net income (loss) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||
Depreciation and amortization | 14.7 | 8.8 | 43.5 | 25.9 | |||
Stock-based compensation expense | 5.6 | 3.6 | 15.6 | 11.5 | |||
Loss (Earnings) from joint ventures | (0.5) | 0.2 | (4.7) | 0.5 | |||
Impairment charge | 63.0 | –– | 63.0 | –– | |||
Pension settlement charge | –– | –– | –– | 26.7 | |||
Provision for (Recovery of) credit losses | (0.2) | 0.1 | (0.3) | 0.5 | |||
Changes in certain assets and liabilities: | |||||||
Accounts receivable | (8.9) | (11.0) | (42.2) | (17.3) | |||
Contract assets | (10.6) | 12.9 | (37.8) | 0.5 | |||
Inventories | (19.2) | (25.8) | (76.6) | (97.3) | |||
Rotable assets and equipment on or available for short-term lease | (1.8) | (19.3) | 4.0 | (23.8) | |||
Prepaid expenses and other current assets | (6.3) | (1.1) | (16.9) | (11.3) | |||
Rotable assets supporting long-term programs | (12.1) | (2.9) | (24.2) | (6.9) | |||
Accounts payable and accrued liabilities | (31.1) | 46.3 | 71.5 | 93.5 | |||
Deferred revenue on long-term programs | 2.3 | (4.1) | (4.1) | (13.6) | |||
Other | (4.7) | (1.3) | 15.4 | (6.8) | |||
Net cash provided by (used in) operating activities – continuing operations | (18.7) | 20.4 | (15.3) | 19.3 | |||
Net cash used in operating activities – discontinued operations | –– | –– | –– | (0.2) | |||
Net cash provided by (used in) operating activities | (18.7) | 20.4 | (15.3) | 19.1 | |||
Cash flows used in investing activities: | |||||||
Property, plant, and equipment expenditures | (8.5) | (5.8) | (24.7) | (22.2) | |||
Other | 4.8 | (0.7) | 7.8 | (4.6) | |||
Net cash used in investing activities | (3.7) | (6.5) | (16.9) | (26.8) | |||
Cash flows provided by (used in) financing activities: | |||||||
Short-term borrowings, net | 35.0 | –– | 35.0 | 5.0 | |||
Purchase of treasury stock | –– | (5.1) | –– | (5.1) | |||
Other | 5.8 | (0.7) | 2.0 | 9.6 | |||
Net cash provided by (used in) financing activities | 40.8 | (5.8) | 37.0 | 9.5 | |||
Increase in cash and cash equivalents | 18.4 | 8.1 | 4.8 | 1.8 | |||
Cash, cash equivalents, and restricted cash at beginning of period | 82.5 | 75.5 | 96.1 | 81.8 | |||
Cash, cash equivalents, and restricted cash at end of period |
AAR CORP. and subsidiaries | |||||
Third-party sales by segment (In millions – unaudited) | Three months ended February 28/29, | Nine months ended February 28/29, | |||
2025 | 2024 | 2025 | 2024 | ||
Parts Supply | $ 794.1 | ||||
Repair & Engineering | 215.9 | 140.8 | 662.3 | 423.7 | |
Integrated Solutions | 162.9 | 165.5 | 495.2 | 478.4 | |
Expeditionary Services | 28.7 | 18.7 | 74.4 | 53.6 | |
Operating income (loss) by segment (In millions – unaudited) | Three months ended February 28/29, | Nine months ended February 28/29, | |||
2025 | 2024 | 2025 | 2024 | ||
Parts Supply | |||||
Repair & Engineering | 19.0 | 11.5 | 62.9 | 31.9 | |
Integrated Solutions | 9.6 | 8.6 | 23.8 | 22.7 | |
Expeditionary Services | 6.4 | 0.9 | 6.9 | 3.1 | |
80.4 | 52.1 | 200.7 | 132.3 | ||
Corporate and other | (9.3) | (19.1) | (88.5) | (35.7) | |
Adjusted net income, adjusted diluted earnings per share, adjusted operating margin, adjusted cash provided by (used in) operating activities, adjusted EBITDA, net debt, and net debt to adjusted EBITDA (net leverage) are "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We believe these non-GAAP financial measures are relevant and useful for investors as they illustrate our core operating performance, cash flows, and leverage unaffected by the impact of certain items that management does not believe are indicative of our ongoing and core operating activities. When reviewed in conjunction with our GAAP results and the accompanying reconciliations, we believe these non-GAAP financial measures provide additional information that is useful to gain an understanding of the factors and trends affecting our business and provide a means by which to compare our operating performance and leverage against that of other companies in the industries we compete. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
Our non-GAAP financial measures reflect adjustments for certain items including, but not limited to, the following:
- Costs associated with
U.S. Foreign Corrupt Practices Act ("FCPA") matters that we self-reported to theU.S. Department of Justice and other agencies, including investigation costs and settlement charges. - Expenses associated with recent acquisition activity, including professional fees for legal, due diligence, and other acquisition activities, bridge financing fees, intangible asset amortization, integration costs, and compensation expense related to contingent consideration and retention agreements.
- Pension settlement charges associated with the settlement and termination of our frozen defined benefit pension plan.
- Legal judgments related to or impacted by the
Russia /Ukraine conflict. - Contract termination/restructuring costs comprised of gains and losses that are recognized at the time of modifying, terminating, or restructuring certain customer and vendor contracts, including the impact from the
U.S. government exercising their termination for convenience in the first quarter of fiscal year 2025 for our Mobility Systems business's new-generation pallet contract. - Losses related to our exit from our Indian joint venture, our Landing Gear Overhaul business, and our Composites manufacturing business, including legal fees for the performance guarantee associated with the Composites' A220 aircraft contract.
Adjusted EBITDA is net income (loss) before interest income (expense), other income (expense), income taxes, depreciation and amortization, stock-based compensation, and items of an unusual nature including but not limited to business divestitures and acquisitions, FCPA investigation, settlement and remediation compliance costs, pension settlement charges, certain legal judgments, acquisition, integration, and amortization expenses from recent acquisition activity, and significant customer contract terminations.
Pursuant to the requirements of Regulation G of the Exchange Act, we are providing the following tables that reconcile the above-mentioned non-GAAP financial measures to the most directly comparable GAAP financial measures:
Adjusted net income (In millions – unaudited) | Three months ended February 28/29, | Nine months ended February 28/29, | |||
2025 | 2024 | 2025 | 2024 | ||
Net income (loss) | |||||
Losses related to sale and exit of business/joint venture, net | 64.0 | 1.0 | 63.2 | 2.6 | |
Acquisition, integration, and amortization expenses | 7.5 | 18.3 | 23.6 | 24.2 | |
FCPA settlement and investigation costs | 1.1 | 2.0 | 65.3 | 5.7 | |
Russian bankruptcy court judgment (reversal) | (11.1) | –– | (11.1) | 11.2 | |
Contract termination cost (benefit) | (3.0) | –– | 0.2 | –– | |
Pension settlement charge | –– | –– | –– | 26.7 | |
Tax effect on adjustments (a) | (14.2) | (5.0) | (21.6) | (20.5) | |
Adjusted net income |
(a) | Calculation uses estimated statutory tax rates on non-GAAP adjustments except for the impact of the non-deductible portion of the FCPA settlement charge and the tax effect of the pension settlement charge, which includes income taxes previously recognized in accumulated other comprehensive loss. |
Adjusted diluted earnings per share (unaudited) | Three months February 28/29, | Nine months ended February 28/29, | |||
2025 | 2024 | 2025 | 2024 | ||
Diluted earnings (loss) per share | |||||
Losses related to sale and exit of business/joint venture, net | 1.80 | 0.02 | 1.78 | 0.07 | |
Acquisition, integration, and amortization expenses | 0.21 | 0.52 | 0.66 | 0.69 | |
FCPA settlement and investigation costs | 0.03 | 0.06 | 1.84 | 0.16 | |
Russian bankruptcy court judgment (reversal) | (0.31) | –– | (0.31) | 0.32 | |
Contract termination benefit | (0.09) | –– | –– | –– | |
Pension settlement charge | –– | –– | –– | 0.76 | |
Tax effect on adjustments (a) | (0.40) | (0.14) | (0.61) | (0.58) | |
Adjusted diluted earnings per share |
(a) | Calculation uses estimated statutory tax rates on non-GAAP adjustments except for the impact of the non-deductible portion of the FCPA settlement charge and the tax effect of the pension settlement charge, which includes income taxes previously recognized in accumulated other comprehensive loss. |
Adjusted operating margin (In millions – unaudited) |
Three months ended | ||
February | November | February | |
Sales | |||
Contract termination benefit | (4.0) | –– | –– |
Adjusted sales | |||
Operating income (loss) | $ 71.1 | ||
Acquisition, integration, and amortization expenses | 7.5 | 7.2 | 12.2 |
Contract termination benefit | (3.0) | –– | –– |
FCPA settlement and investigation costs | 1.1 | 59.2 | 2.0 |
Russian bankruptcy court reversal | (11.1) | –– | –– |
Gain related to sale of joint venture | –– | (0.7) | –– |
Adjusted operating income | $ 65.6 | ||
Adjusted operating margin | 9.7 % | 9.2 % | 8.3 % |
Adjusted cash provided by (used in) operating activities (In millions – unaudited) | Three months February 28/29, | Nine months ended February 28/29, | |||
2025 | 2024 | 2025 | 2024 | ||
Cash provided by (used in) operating activities | |||||
Amounts outstanding on accounts receivable financing program: | |||||
Beginning of period | 23.9 | 13.7 | 13.7 | 12.8 | |
End of period | (20.2) | (13.7) | (20.2) | (13.7) | |
Adjusted cash provided by (used in) operating activities |
Adjusted EBITDA (In millions – unaudited) | Three months ended February 28/29, | Nine months ended February 28/29, | Year ended May 31, | ||||
2025 | 2024 | 2025 | 2024 | 2024 | |||
Net income (loss) | $ 46.3 | ||||||
Income tax expense (benefit) | (2.2) | 6.5 | 12.8 | 7.5 | 12.0 | ||
Other expense, net | 0.1 | 0.2 | 0.4 | 0.3 | 0.4 | ||
Interest expense, net | 18.1 | 11.3 | 55.2 | 22.3 | 41.0 | ||
Depreciation and amortization | 14.0 | 8.8 | 41.5 | 25.9 | 41.2 | ||
Losses related to sale and exit of business/joint venture, net |
64.0 |
1.0 |
63.2 |
2.6 |
2.8 | ||
Russian bankruptcy court judgment (reversal) | (11.1) | –– | (11.1) | 11.2 | 11.2 | ||
Contract termination/restructuring costs and loss provisions, net |
(3.0) |
–– | 0.2 |
–– |
4.8 | ||
Acquisition and integration expenses | 3.5 | 11.2 | 11.7 | 15.1 | 29.7 | ||
FCPA settlement and investigation costs | 1.1 | 2.0 | 65.3 | 5.7 | 10.5 | ||
Pension settlement charge | –– | –– | –– | 26.7 | 26.7 | ||
Severance charges | –– | –– | –– | –– | 0.5 | ||
Stock-based compensation | 5.6 | 3.6 | 15.6 | 11.5 | 15.3 | ||
Adjusted EBITDA |
Net debt (In millions – unaudited) | February | February 29, 2024 | |
Total debt | |||
Less: Cash and cash equivalents | (84.4) | (69.2) | |
Net debt |
Net debt to adjusted EBITDA (In millions - unaudited) | |
Adjusted EBITDA for the year ended May 31, 2024 | |
Less: Adjusted EBITDA for the nine months ended February 29, 2024 | (166.0) |
Plus: Adjusted EBITDA for the nine months ended February 28, 2025 | 233.3 |
Adjusted EBITDA for the twelve months ended February 28, 2025 | |
Net debt at February 28, 2025 | |
Net debt to Adjusted EBITDA | 3.06 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/aar-reports-third-quarter-fiscal-year-2025-results-302413539.html
SOURCE AAR CORP.