"Our second quarter sales of $686 million improved 26% from the same quarter last year... We are very proud of the performance we delivered this past quarter."
— John Holmes
03Detailed Report
AIR
AAR Corp
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
AAR Corp (Ticker: AIR) delivered robust financial performance in Q2 2025, with revenue soaring to $686 million, representing a 26% increase year-over-year. This growth showcases strong demand across both the commercial and government sectors, aided by a healthy aerospace aftermarket. The company's adjusted earnings per share reached $0.90, a testament to effective margin management and operational efficiencies. However, AAR's net income recorded a loss of $30.6 million due to large expenditures, including a significant FCPA-related settlement, necessitating close attention from investors on expense management moving forward. Management expresses optimism for fiscal year 2025 driven by continued growth in aftermarket services and strategic business acquisitions.
Key Performance Indicators
Revenue
Increasing
686.10M
QoQ: 3.69% | YoY: 25.80%
Gross Profit
Increasing
128.60M
18.74% margin
QoQ: 9.73% | YoY: 24.37%
Operating Income
Decreasing
-2.30M
QoQ: -105.30% | YoY: -106.01%
Net Income
Decreasing
-30.60M
QoQ: -270.00% | YoY: -228.57%
EPS
Decreasing
-0.51
QoQ: -200.00% | YoY: -176.12%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Performance Metrics
- Revenue: $686 million (up 26% YoY)
- Gross Profit: $128.6 million (up 24% YoY, gross margin 18.74%)
- Operating Income: -$2.3 million (down 106% YoY)
- Net Income: -$30.6 million (down 229% YoY)
- Adjusted EBITDA: $78.3 million (up 42% YoY)
- EBITDA Margin: 11.4% (improved from 10.1% YoY)
- EPS: -$0.51 (compared to $0.40 previous year)
#### Comparison
AAR’s performance reflects acceleration in growth rates compared to the previous quarter, moving from 6% to 12% organic sales growth quarter-over-quarter, supported by a favorable environment for repair, maintenance, and parts supply services.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
686.10M
25.80%
3.69%
Gross Profit
128.60M
24.37%
9.73%
Operating Income
-2.30M
-106.01%
-105.30%
Net Income
-30.60M
-228.57%
-270.00%
EPS
-0.51
-176.12%
-200.00%
Key Financial Ratios
Gross Profit Margin
Weak
18.70%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
0.00%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.04%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.68
Current ratio indicates excellent liquidity and financial flexibility
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