AAR (AIR) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
AIR's fiscal second-quarter earnings beat the Zacks Consensus Estimate by 8.4%, while the quarterly sales top the consensus estimate by 5.1%.
AAR Corp. (NYSE:AIR ) Q2 2025 Earnings Conference Call January 7, 2024 5:00 PM ET Company Participants Denise Pacioni - IR John Holmes - Chairman, President and CEO Sean Gillen - Chief Financial Officer Conference Call Participants Scott Mikus - Melius Research Ken Herbert - RBC Capital Markets Michael Ciarmoli - Truist Securities Louie DiPalma - William Blair Josh Sullivan - Benchmark Operator Hello, and thank you for standing by. Welcome to AAR Corp. Q2 2025 Earnings Conference Call.
AAR (AIR) came out with quarterly earnings of $0.90 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.81 per share a year ago.
AAR Corp. AIR will release earnings results for its second quarter, after the closing bell on Tuesday, Jan. 7, 2025.
Air India has expanded an order from Airbus Group (EPA:AIR) to include 100 additional jets, including widebody Rolls-Royce Holdings PLC (LSE:RR.)-powered A350s.
AIR makes a strong case for investment in the aerospace sector, given its growth prospects, low debt, high liquidity and expanding presence in the MRO industry.
Airbus Group (EPA:AIR) is cutting up to 2,500 jobs in its defence and space business due to tough competition and "rapid changes in warfare". The French aircraft maker said it planned to axe around 7% of the division's workforce by the middle of 2026.
AIR, BZH and BRY have been added to the Zacks Rank #5 (Strong Sell) List on October 1, 2024.
AIR wins a deal from the U.S. Navy's Naval Air Systems Command for the maintenance and repair of its P-8A Poseidon Aircraft.
AAR Corp. reported robust year-over-year sales growth of 20.4% in 1Q25, driven by increased demand and volume in the commercial aerospace sector, particularly within its parts supply segment. The company is well-positioned to benefit from the recovery in air traffic and aging fleets, which are driving the demand for aftermarket services. MRO demand is expected to exceed supply by the end of the decade, providing strong growth potential for the company.
Despite underperforming the S&P 500, AAR's robust aftermarket demand and capacity expansions suggest significant upside, maintaining a buy rating with an $86 FY26 price target. Sales grew 20% in Q1 FY25, driven by commercial and defense sectors, though gross profit growth was limited by contract and customer mix. Risks include operating at capacity limits and lower USM sales due to airplane shortages, but efficiency improvements and capacity expansions offer growth potential.