Q3 25 EPS
$0.99
BEAT +2.70%
Est. $0.96
Q3 25 Revenue
$678.2M
MISS 2.99%
Est. $699.1M
vs S&P Since Q3 25
+61.3%
BEATING MARKET
AIR +97.2% vs S&P +35.9%
Market Reaction
Did AIR Beat Earnings? Q3 2025 Results
AAR Corp. Posted record fiscal third-quarter results for the period ended February 28, 2025, with adjusted diluted EPS climbing 16% to $0.99 and consolidated revenue rising 20% year-over-year to $678.20 million, underscoring the durability of demand … Read more AAR Corp. Posted record fiscal third-quarter results for the period ended February 28, 2025, with adjusted diluted EPS climbing 16% to $0.99 and consolidated revenue rising 20% year-over-year to $678.20 million, underscoring the durability of demand across its aviation aftermarket platform. The standout driver was the Repair & Engineering segment, where the integration of the Product Support acquisition from Triumph Group and strong Airframe MRO throughput pushed segment sales up 53% to $215.90 million, with segment adjusted EBITDA more than doubling and margins expanding from 9.4% to 12.9%. GAAP results were weighed down by a $63.70 million pre-tax charge tied to the planned divestiture of the Landing Gear Overhaul business, expected to close for $51 million in the current quarter. Net leverage stood at 3.06x at quarter-end, down from 3.58x at acquisition close, with management targeting 2.0 to 2.5x as deleveraging continues into fiscal 2026. For Q4, AAR guided to mid-single-digit sales growth and adjusted operating margin between 9.7% and 9.9%.
Key Takeaways
- • Product Support acquisition from Triumph Group driving Repair & Engineering sales and margin expansion
- • Strong demand for new parts Distribution in both commercial and government activities
- • Increased throughput within Airframe MRO facilities
- • Trax software delivering strong margin performance in Integrated Solutions
- • EBITDA margin expanded from 10.3% to 12.0% year-over-year driven by acquisition contributions and internal efficiency initiatives
- • Reversal of $11.1 million Russian court judgment legal charge
- • Sales to commercial customers increased 22%; sales to government customers increased 15%
AIR YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
AIR Revenue by Segment
With YoY comparisons, source: SEC Filings
“We delivered another strong quarter of significant year-over-year sales and earnings growth. Sales were 20% higher than in the same quarter last year as demand remains elevated for our aftermarket services. Parts Supply sales increased 12%, driven by impressive gains in our new parts Distribution with both commercial and government activities. Our Repair & Engineering segment sales increased more than 53% year-over-year, with significant contributions from the Product Support acquisition as well as increased throughput within our Airframe MRO facilities. Integrated Solutions also posted meaningful earnings growth from both commercial and government programs as well as notable contributions from Trax.”
— John M. Holmes, Q3 2025 Earnings Press Release
AIR Earnings Trends
AIR vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AIR EPS Trend
Earnings per share: estimate vs actual
AIR Revenue Trend
Quarterly revenue: estimate vs actual
AIR Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 BEAT | $1.16 | $1.25 | +8.07% | $845.1M | +4.00% |
| Q2 26 BEAT | $1.04 | $1.18 | +13.65% | $795.3M | +4.49% |
| Q1 26 BEAT | $0.98 | $1.08 | +9.76% | $739.6M | +7.27% |
| Q4 25 BEAT FY | $1.01 | $1.16 | +15.05% | $754.5M | +8.44% |
| FY Full Year | $3.76 | $3.91 | +4.04% | $2.78B | +2.22% |
| Q3 25 BEAT | $0.96 | $0.99 | +2.70% | $678.2M | -2.99% |