Q4 25 EPS
$1.16
BEAT +15.05%
Est. $1.01
Q4 25 Revenue
$754.5M
BEAT +8.44%
Est. $695.8M
vs S&P Since Q4 25
+55.4%
BEATING MARKET
AIR +75.1% vs S&P +19.7%
Full Year 2025 Results
FY 25 EPS
$3.91
BEAT +4.04%
Est. $3.76
FY 25 Revenue
$2.78B
BEAT +2.22%
Est. $2.72B
Market Reaction
Did AIR Beat Earnings? Q4 2025 Results
AAR Corp closed out fiscal year 2025 with a standout fourth quarter, posting adjusted diluted EPS of $1.16 against a consensus estimate of $1.00, a 16.00% beat, while revenue of $754.50 million topped the $694.01 million estimate by 8.72% and climbed… Read more AAR Corp closed out fiscal year 2025 with a standout fourth quarter, posting adjusted diluted EPS of $1.16 against a consensus estimate of $1.00, a 16.00% beat, while revenue of $754.50 million topped the $694.01 million estimate by 8.72% and climbed 14.9% year over year. The primary engine behind the outperformance was Parts Supply, where over 20% organic growth in new parts Distribution, fueled by both market expansion and share gains, drove segment sales to $305.50 million at adjusted EBITDA margins of 17.1%. Adjusted EBITDA for the quarter rose 19% to $90.90 million, with margins expanding 80 basis points to 12.4%, capping a full fiscal year in which consolidated sales reached $2.78 billion, up 20%. AAR's stock climbed in aftermarket trading following the release, reflecting investor confidence in the company's trajectory. Looking ahead, management guided Q1 FY2026 sales growth of 6% to 11% off an adjusted base of $633.00 million, with adjusted operating margins of 9.6% to 10.0%, while targeting net leverage of 2.0x to 2.5x by year end.
Key Takeaways
- • Over 20% organic growth in new parts Distribution activities driven by market growth and market share gains
- • Strong demand across commercial and government end-markets
- • Favorable mix in Parts Supply driving adjusted operating margin expansion from 9.3% to 10.5%
- • Product Support acquisition integration substantially completed
- • Commercial customer sales increased 12% and government customer sales increased 21% year-over-year
AIR YoY Financials
Q4 2025 vs Q4 2024, source: SEC Filings
AIR Revenue by Segment
With YoY comparisons, source: SEC Filings
“In Fiscal Year 2025, we delivered record sales and profitability and made meaningful progress against our strategic objectives. We substantially completed the integration of the Product Support acquisition and continued to optimize our portfolio with the divestiture of our Landing Gear Overhaul business. We further invested in our fast growing new parts Distribution activities, launched two hangar expansions, and announced several key new business wins for our Trax software solution. We continued to reduce our net leverage, ending the fiscal year at 2.72x. Our optimized portfolio, combined with our strengthened balance sheet, is delivering higher growth, higher margins, and stronger returns.”
— John M. Holmes, Q4 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% |