AAR CORP. Reports Fourth Quarter and Fiscal Year 2025 Results

AAR CORP., a leading provider of aviation services to commercial and government operators, MROs, and OEMs, has released its financial results for the fourth quarter and fiscal year 2025, which ended on May 31, 2025. The company reported significant growth in sales and profitability, driven by strong demand across its commercial and government end-markets.

Financial Highlights

For the fourth quarter of fiscal year 2025, AAR CORP. reported:

• Sales of $755 million, a 15% increase compared to Q4 FY2024.
• GAAP EPS of $0.95.
• Adjusted diluted EPS of $1.16, a 32% increase.
• GAAP Net income of $34 million.
• Adjusted EBITDA of $91 million, a 19% increase.
• Adjusted EBITDA margin increased to 12.4% from 11.6%.

For the full fiscal year 2025, the company reported:

• Sales of $2.8 billion, a 20% increase compared to FY2024.
• GAAP EPS of $0.35.
• Adjusted diluted EPS of $3.91, a 17% increase.
• GAAP Net income of $13 million.
• Adjusted EBITDA of $324 million, a 34% increase.
• Adjusted EBITDA margin increased to 11.8% from 10.4%.

Business and Operational Highlights

During the fiscal year, AAR CORP. made significant progress in its strategic objectives, including:

• Substantially completing the integration of the Product Support acquisition.
• Divesting its Landing Gear Overhaul business for $48 million.
• Investing in new parts Distribution activities and launching two hangar expansions.
• Announcing several key new business wins for its Trax software solution.

Strategic Initiatives and Corporate Developments

The company continued to reduce its net leverage, ending the fiscal year at 2.72x. It also signed a new parts Distribution Supply Chain Alliance charter with the U.S. Defense Logistics Agency (DLA) and was awarded an E-6B Mercury pilot training contract from the U.S. Navy through its joint venture with KIRA Aviation Services.

Management's Perspective

John M. Holmes, AAR’s Chairman, President, and Chief Executive Officer, commented, “In Fiscal Year 2025, we delivered record sales and profitability and made meaningful progress against our strategic objectives. Our optimized portfolio, combined with our strengthened balance sheet, is delivering higher growth, higher margins, and stronger returns.”

Future Outlook

Looking ahead to fiscal year 2026, AAR CORP. expects to continue gaining market share in Parts Supply and expand its capabilities and footprint in Repair & Engineering. The company also anticipates continued growth for its Trax software solution and aims to convert its large pipeline of government opportunities into new business wins.

SEC Filing: AAR CORP [ AIR ] - 8-K - Jul. 16, 2025