What is the revenue and EPS growth rate for AAR year over year?

What is the market's earnings forecast for AAR next quarter?

What factors drove the changes in AAR's revenue and profit?

What is AAR's latest dividend and current dividend yield?

What were the key takeaways from AAR’s earnings call?

What guidance did AAR's management provide for the next earnings period?

Did AAR beat or miss consensus estimates last quarter?

What is AAR's gross profit margin?

- **Revenue Growth**: 25% YoY total sales growth, driven by 36% organic expansion in new parts distribution.
- **Strategic Wins**: $450 million government contract and Trax's 6,000-user deployment at Delta.
- **Margin Improvement**: HAECO integration ahead of schedule, with Q3 FY27 margin recovery expected.
- **Resilience in Volatility**: No meaningful impact on maintenance demand despite Middle East tensions.

**【CEO Summary Section】**
- **Outstanding Q3 Performance**: Total sales grew 25% YoY, with 14% organic growth. Adjusted operating income rose 31% to $86.2 million, and adjusted EBITDA increased 26% to $102.1 million.
- **Strategic Initiatives**: 
  - HAECO Americas integration ahead of schedule, with Miami hangar operational and Oklahoma City expansion complete.
  - ADI acquisition outperformed expectations, contributing to 36% organic growth in new parts distribution.
  - Trax software platform expanded to 2,000 users at Delta, with plans to reach 6,000 users.
- **Market Resilience**: Despite Middle East tensions, commercial customers report record bookings and no meaningful impact on maintenance schedules.
- **Government Growth**: Government sales grew 19% YoY, driven by defense contracts like the $450 million expeditionary services deal.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - GAAP net income of $420 million; Non-GAAP EPS of $1.25, up 26% YoY.
  - Parts supply segment grew 45% YoY, with 36% organic growth in new parts distribution.
  - Repair and engineering margins temporarily impacted by HAECO integration, but expected to improve by Q3 FY27.
- **Balance Sheet Strength**: Net leverage at 2.17x, within target range of 2.0-2.5x, supported by $75 million in operating cash flow.

**【Q&A Key Highlights】**
- **Impact of Fuel Prices**: Customers report no significant impact on maintenance schedules, with focus on cost-saving alternatives like AAR's parts distribution.
- **Distribution Growth**: 2/3 of new parts distribution growth from same-store sales, 1/3 from new contracts, with defense sales up 55% YoY.
- **Trax Momentum**: Delta deployment on track for 6,000 users, with additional functionality rollouts over the next 18 months.
- **HAECO Integration**: Workforce and process improvements completed ahead of schedule; Indianapolis facility transition to lower-cost sites underway.
- **Government Contracts**: Defense demand driving 19% YoY growth in government sales, with focus on high-margin sustainment programs.

AAR Corp (AIR) Q3 2026 Earnings Call Transcript

- **Revenue Growth**: Total sales up 16% YoY, Parts Supply segment +29%, driven by new contracts and volume.
- **Margin Expansion**: Operating margin 10.2% (up 100bps), targeting 10%+ long-term with HAECO integration.
- **Strategic Acquisitions**: ADI, HAECO Americas, and ART to enhance Parts Supply and MRO capabilities.
- **Software Adoption**: Trax now used by 100% of top 20 airlines, with Delta and Thai Airways implementations.
- **Future Growth**: FY26 total sales +17%, Q3 sales 20-22% growth (2-5% organic), with FY27 capacity expansion.
- **Risk Management**: No destocking signals, stable USM activity, and HAECO margin dilution temporary.


**【CEO Summary Section】**
- **Strong Financial Performance**: Total sales grew 16% YoY to $795 million, driven by 29% growth in Parts Supply segment. Adjusted EBITDA increased 23% to $96.5 million, with margins expanding to 12.1%.
- **Strategic Acquisitions**: Completed acquisitions of ADI ($138M), HAECO Americas ($77M), and pending ART ($35M), enhancing Parts Supply and Repair & Engineering capabilities.
- **New Business Wins**: Renewed exclusive contracts with Collins Aerospace and TransDigm, and new Trax software adoption by Thai Airways.
- **Margin Expansion**: Operating margin improved to 10.2% (up 100bps YoY), with focus on cost control and integration synergies.
- **Future Growth**: Q3 sales growth expected 20-22% (2-5% organic), FY26 total sales growth ~17% (11% organic), targeting margin expansion through 2028.

**【CFO Financial Commentary】**
- **Segment Breakdown**: Parts Supply ($354M, +29%), Repair & Engineering ($245M, +7%), Integrated Solutions ($176M, +8%).
- **Margin Details**: Parts Supply EBITDA margin 13.2% (up 60bps), Repair & Engineering EBITDA margin 12.8% (down 70bps due to HAECO integration).
- **Balance Sheet Health**: Net debt leverage 2.49x (target 2.0-2.5x), supported by equity offering and earnings growth.
- **Capital Allocation**: Prioritizing organic growth in Parts Supply, MRO expansion, and software/IP investments.

**【Q&A Highlights】**
- **Parts Distribution Growth**: 32% organic growth (50% commercial, 50% defense), driven by volume and contract renewals.
- **Margin Impact**: Near-term margin dilution from HAECO integration (12-18 months), targeting 10%+ operating margin long-term).
- **Trax Adoption**: 100% of top 20 airlines now using Trax, with Delta implementation 7 months underway and Thai Airways contract secured.
- **ART Potential**: Aircraft interior reconfiguration expertise to expand MRO services and PMA development.
- **USM Activity**: Stable at FY26Q2 levels, with focus on Parts Supply as primary growth driver.
- **HAECO Synergies**: $850M new contracts over 5 years, labor cost reduction, and 40% capacity expansion by FY27.


AAR Corp.(AIR)-20260107-2026 Q2 Earnings call transcript

- **17% Organic Growth**: Part supply up 27%, 20+ new distribution agreements.
- **Trax Software Expansion**: 15% airline market share, Aerostrat integration.
- **2026 Outlook**: 10%+ growth, 6% margin expansion, $1.08 EPS.
- **Risk**: USM supply tightening, cross-sell execution.

**【CEO Summary Section】**
- Q1 2026 revenue grew 17% organically, driven by 27% part supply growth and 15% commercial sales expansion.
- Secured 20+ new distribution agreements, including exclusive AmSafe deal, driving 20%+ parts distribution growth.
- Trax software now serves 15% of global airlines, with Aerostrat acquisition adding 100+ customers.
- 2026 outlook: 10%+ organic growth, 6% margin expansion, $1.08 EPS vs. $0.85 prior year.

**【CFO Financial Commentary】
- GAAP net $420M, Non-GAAP EPS $1.08 (vs. $0.85), 15% margin expansion.
- Part supply EBITDA $43.8M (13.8% margin), repair $24.9M (12.1% margin).
- Q2 guidance: 7-10% sales growth, 6% margin expansion.

**【Q&A Highlights】
- Part supply pipeline: 20+ new distribution wins, 15%+ growth in 2026.
- Cross-selling: 15% component repair volume shifted, 2026 targets 20%+ cross-sell.
- USM margins: 14%+ if supply loosens, 2026 USM sales $200M+.
- Aerostrat earn-out: 3-year retention plan for 100+ key employees.
- Engine aftermarket: 80% part supply, 20% repair exposure to engines.
- Trax e-commerce: 15%+ parts cross-sell via digital platform.


AAR Corp. (AIR) Q1 2026 Earnings Call Transcript

- **Record FY2025 Performance**: $2.8B revenue (+20%), $3.91 EPS, 14% organic growth.
- **Strategic Wins**: Delta Trax deal, 25%+ new parts distribution growth, 15% MRO capacity expansion.
- **Financial Strength**: 2.7x net leverage, $48M cash from divestiture, 9.6% operating margin.
- **2026 Outlook**: 9% organic growth, $10M synergies, 2.0-2.5x leverage target.
- **Key Risks**: Q1 volatility from USM, Repair margin headwinds temporary.

**【CEO Opening Remarks】**
- AAR delivered record FY2025 results with $2.8B revenue (+20% YoY), 14% organic sales growth, and $3.91 adjusted EPS (+17%).
- Key achievements: 
  - $48M cash from Landing Gear divestiture, reducing net leverage to 2.7x.
  - 25% organic growth in new parts distribution vs. market rates.
  - Trax software win with Delta, largest in MRO ERP space.
  - 15% capacity expansion via Oklahoma City and Miami MRO facilities (Q4 2026 online).
- 2026 targets: 9% organic growth, margin expansion, and $10M Product Support synergies.

**【CFO Financial Commentary】**
- Q4 2025: 
  - $736M sales (+12% YoY), $90.9M EBITDA (+19%), $1.16 EPS (+32%).
  - Parts Supply: 17% growth, 17.1% EBITDA margin (vs. 14.8% YoY).
  - Repair & Engineering: 8% organic growth, 12% EBITDA margin (-1.1pts vs. Q4 2024 due to NY facility closure costs).
  - Integrated Solutions: 10% growth, 5.9% operating margin (+0.3pts).
- FY2025: $2.68B adjusted sales, 9.6% operating margin, $3.91 EPS.

**【CEO 2026 Outlook】**
- Q1 2026 guidance: 6-11% sales growth (ex-Landing Gear), 9.6-10% operating margin.
- Strategic priorities: 
  - Expand new parts distribution (25%+ growth rate).
  - Roll out paperless hangar initiative (1/3 facilities completed).
  - Scale Trax to $100M+ revenue (from $50M in Q4 2025).
  - Deleverage to 2.0-2.5x net debt by FY2026.

**【Q&A Highlights】**
- **USM volatility**: Q1 guidance range reflects large whole asset transactions.
- **Repair margins recovery**: NY facility closure costs will exit Q1 2026, enabling margin expansion.
- **Trax growth**: Delta deal could double Trax revenue; 4x+ uplift from legacy upgrades.
- **Capacity utilization**: New MRO facilities fully booked, with 15% network expansion.
- **USM decline**: Aiming for <15% of portfolio as focus shifts to higher-margin distribution.

AAR Corp. (AIR) Q4 2025 Earnings Call Transcript

- **Record Q3 Performance**: $678M sales (+20% YoY), $81.2M EBITDA (+39%), 12% margin (vs. 10.3% last year).
- **New Parts Dominance**: 60% of Parts Supply now from distribution, with 20% organic growth and major contract wins.
- **Trax Momentum**: Cathay Pacific and Singapore Airlines wins signal expansion of high-margin digital MRO platform.
- **Debt Reduction Path**: Net leverage down to 3.06x; Landing Gear sale to further accelerate deleveraging.
- **USM Recovery Expected**: Q3 volume dip temporary; watching for broader asset market loosening.

**【CEO Summary Section】**
- Q3 FY2025 sales reached $678 million, up 20% YoY, driven by 22% growth in commercial sales and 15% in government sales.
- Adjusted EBITDA rose 39% to $81.2 million, with EBITDA margin expanding to 12% (vs. 10.3% last year).
- New parts distribution grew 20% organically, now 60% of Parts Supply segment, with wins in Unison and Chromalloy contracts.
- Repair & Engineering segment sales jumped 53% to $216 million, boosted by Product Support acquisition and Trax wins with Cathay Pacific and Singapore Airlines.
- Q4 FY2025 guidance: mid-single-digit sales growth (excluding Landing Gear), operating margin 9.7-9.9%.

**【CFO Financial Commentary】**
- GAAP net income: $42.5 million; Non-GAAP EPS: $0.99 (up 16% YoY).
- Parts Supply EBITDA: $36.8 million (+12% YoY); Repair & Engineering EBITDA: $27.9 million (+110% YoY).
- Net debt leverage improved to 3.06x (from 3.17x last quarter); expect deleverage to 2-2.5x over time.
- Landing Gear divestiture expected to close Q4, with proceeds used for debt reduction.

**【Q&A Key Themes】**
- **USM Market Dynamics**: Q3 volume decline due to customer deferrals, but signs of loosening asset availability. AAR expects temporary impact, with focus on selective investments.
- **Trax Growth**: Cathay Pacific and Singapore Airlines wins highlight Trax's potential as a high-margin sales channel. Pipeline remains strong in APAC.
- **Defense Opportunities**: DOGE commission engagement may accelerate USM adoption with U.S. government. AAR's commercial best practices could deliver 20-30% cost savings.
- **Tariff Impact**: No bulk buying for parts; focus on passing through cost increases. U.S. repair demand could rise if tariffs restrict overseas MRO.
- **Organic Growth**: 6% organic growth in Q3, excluding M&A and divestitures. New parts distribution remains key driver of predictable growth.

AAR (AIR)-27 Mar 25-2025 Q3 Earnings call transcript

- **Q2 Record Performance**: $686M sales (+26% YoY), 11% EPS growth, 12% organic growth across all segments.
- **Segment Strength**: Parts Supply leads at 40% of sales, Repair & Engineering EBITDA up 132% YoY.
- **Strategic Moves**: $51M landing gear sale to GA Telesis, $55.6M FCPA resolution completed.
- **Future Growth**: Hanger expansions (FY26), $10M product support synergies, PMA distribution ramp-up.
- **Margin Expansion**: EBITDA margin 11.4%, operating margin 9.2%, targeting 2x net leverage by FY27.
- **Government Opportunity**: $60M savings via used aircraft conversions, DOGE Commission engagement.


**【CEO Summary Section】**
- **Record Q2 Sales**: $686 million, up 26% YoY, driven by 12% organic growth across all segments.
- **Adjusted EPS Growth**: $0.90 per share, 11% higher than last year, with double-digit growth in both commercial (30%) and government (16%) sales.
- **Segment Highlights**: 
  - **Parts Supply**: $274 million (+20% YoY), 60% engine-related sales, exclusive contracts with Whippany and Chromalloy.
  - **Repair & Engineering**: $229 million (+57% YoY), 132% EBITDA growth from product support acquisition.
  - **Integrated Solutions**: $163 million (+4% YoY), government pipeline conversion expected in FY26.
- **Future Growth Drivers**: Hanger expansions (FY26), $10M synergies from product support, and PMA distribution deals.
- **FCPA Resolution**: $55.6M settlement completed, compliance program strengthened.
- **Landing Gear Divestiture**: $51M sale to GA Telesis, closing in Q1 2025, immediately accretive to margins.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA margin 11.4% (vs. 10.1% YoY), operating margin 9.2% (vs. 8.1% YoY).
- **Cash Flow**: $22M Q2 operating cash flow, net debt leverage 3.17x (down from 3.6x post-acquisition).
- **Interest Expense**: $18.8M Q2, stable Q3 outlook, targeting 2x net leverage by FY27.
- **Divestiture Impact**: $60M non-cash loss in Q3, $51M cash proceeds in Q1 2025.
- **Tax Rate**: 27% effective rate, stable going forward.

**【Q&A Key Takeaways】**
- **USM Growth**: Accelerated from Q1, 12% organic growth, pricing strength in legacy engines.
- **PMA Distribution**: Exclusive Chromalloy deal for CF6-80C2, no conflicts with existing OEMs.
- **Government Efficiency**: Potential $60M savings via used aircraft conversions, DOGE Commission engagement.
- **Margins**: Parts Supply margin expansion from new contracts, R&E synergies on track for FY26.
- **Debt Strategy**: 2x leverage target by FY27, balanced fixed/floating debt structure.


Actual											0.67	0.26	0.17	0.31	0.37	0.47	0.52	0.53	0.63	0.72	0.61	0.69	0.75	0.83	0.78	0.81	0.85	0.88	0.85	0.9	0.99	1.16	1.08		1.25
Forecast											0.6433	-0.2887	-0.0476	0.17	0.29	0.4676	0.49	0.5433	0.5833	0.67	0.5733	0.6775	0.7033	0.7775	0.705	0.7975	0.836	0.8583	0.82	0.85	0.964	1	0.984	1.0383	1.1543
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+4.15%	+190.06%	+457.14%	+82.35%	+27.59%	+0.51%	+6.12%	-2.45%	+8.01%	+7.46%	+6.40%	+1.85%	+6.64%	+6.75%	+10.64%	+1.57%	+1.67%	+2.53%	+3.66%	+5.88%	+2.70%	+16.00%	+9.76%	0.00%	+8.29%

AIR

AIR fundamentals

AIR Q3 2026 Earnings

Earnings Call

You can ask Aime

AIR

AIR fundamentals

AIR Q3 2026 Earnings

Earnings Call

AIR Earnings Call Summary for Q3/20265:00 PM on Mar 24, 2026

AIR Earnings Call Summary for Q2/20265:00 PM on Jan 6, 2026

AIR Earnings Call Summary for Q1/20265:00 PM on Sep 23, 2025

AIR Earnings Call Summary for Q4/20255:00 PM on Jul 16, 2025

AIR Earnings Call Summary for Q3/20255:00 PM on Mar 27, 2025

You can ask Aime