Overview

* AAR Corp ( AIR ) fiscal Q4 sales rise 15% to $755 mln, beating expectations, per LSEG data

* Adjusted EPS for fiscal Q4 beats analyst estimates, per LSEG data

* Co completed integration of Product Support acquisition, divested Landing Gear Overhaul business

Outlook

* Company expects to gain market share in Parts Supply in fiscal 2026.

* AAR Corp ( AIR ) anticipates growth in Trax software business in fiscal 2026.

* Company sees opportunities for margin improvement through efficiency initiatives.

* AAR Corp ( AIR ) plans to expand capabilities in Repair & Engineering in fiscal 2026.

Result Drivers

* PARTS DISTRIBUTION - Over 20% organic sales growth driven by market growth and share gains, per CEO John M. Holmes

* GOVERNMENT DEMAND - 21% increase in sales to government customers due to higher order volumes

* PORTFOLIO OPTIMIZATION - Completed integration of Product Support acquisition and divested Landing Gear Overhaul business

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Beat $754.50 $695.70

mln mln (5

Analysts

)

Q4 Beat $1.16 $1.01 (5

Adjusted Analysts

EPS )

Q4 EPS $0.95

Q4 Net $34 mln

Income

Q4 $500,000

Credit

Loss

Provisio

n

Q4 $73 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy"

* Wall Street's median 12-month price target for AAR Corp ( AIR ) is $80.50, about 8.8% above its July 15 closing price of $73.39

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)