AAR CORP (NYSE:AIR) Surpasses Q4 and Fiscal 2025 Estimates with Strong Revenue and EPS Growth

AAR CORP (NYSE:AIR) reported its fourth-quarter and full-year fiscal 2025 results, surpassing analyst expectations on both revenue and earnings per share (EPS). The aviation and defense services provider posted revenue of $754.5 million, up 14.9% year-over-year and exceeding the consensus estimate of $702.7 million. Non-GAAP EPS came in at $1.16, beating the $1.02 forecast by 13.7%.

Key Takeaways from the Earnings Report

• Revenue Beat: Sales of $754.5 million outperformed estimates by 7.4%, reflecting strong demand across its commercial and government aviation segments.
• EPS Surprise: The $1.16 EPS figure exceeded expectations by $0.14, driven by improved operational efficiency and higher-margin service contracts.
• After-Hours Reaction: Shares rose approximately 2.8% in after-hours trading, signaling investor optimism following the earnings beat.

Market Reaction and Outlook

The positive price action suggests that investors were encouraged by AAR’s ability to deliver growth despite broader macroeconomic uncertainties. The company’s diversified business model—spanning parts supply, maintenance and repair (MRO), and government logistics—appears to be paying off.

While the press release did not provide explicit forward guidance, analysts will likely revise their estimates upward given the strong Q4 performance. Current consensus estimates for the next quarter and full fiscal year 2026 will be closely watched for any adjustments in response to these results.

Business Segment Performance

AAR operates across four key segments:

1. Parts Supply – Sales of new and used aviation components.
2. Repair & Engineering – Maintenance, repair, and overhaul services.
3. Integrated Solutions – Government and commercial logistics programs.
4. Expeditionary Services – Support for military and humanitarian operations.

The company’s growth was broad-based, with particular strength in government contracts and commercial MRO services.

Final Thoughts

AAR’s latest earnings demonstrate resilience in both commercial and defense aviation markets. The revenue and EPS beats, coupled with a positive market reaction, suggest confidence in the company’s execution. However, investors should monitor upcoming analyst revisions and any macroeconomic factors that could impact the aviation sector.

For more detailed earnings estimates and historical performance, see AAR CORP’s earnings page.

Disclaimer: This article is not investment advice. Always conduct your own research before making financial decisions.