In the first quarter of fiscal 2025, AAR Corp reported robust revenue growth of 20% year-over-year, reaching $661.7 million, driven by strong performance across its commercial and government sectors. This significant increase was attributed to strategic acquisitions, particularly in the areas of parts supply and integrated solutions. The company also demonstrated impressive margin expansion, with adjusted operating margins increasing by 180 basis points to 9.1%, indicating effective cost management and operational efficiency. AAR is well-positioned to capitalize on the increasing demand for aftermarket services in a recovering market, with expectations of continued growth momentum in the coming quarters.
CEO John Holmes emphasized on the earnings call that, "We are benefiting from structural tailwinds, elevated levels of air travel, and an aging fleet which drives demand for our aftermarket services," underscoring AAR's strategic focus areas.