AAR CORP. has posted fourth-quarter 2024 consolidated sales of US$656.5 million and income from continuing operations of US$9.1 million. For the fourth quarter of the prior year, the company reported sales of US$553.3 million and income from continuing operations of US$23.2 million.
Consolidated fourth-quarter sales increased by 19% over the prior year quarter. Consolidated sales to commercial customers increased by 20% over the prior year quarter, primarily due to the acquisition of the Product Support business and strong demand for new parts distribution activities. Sales to government customers increased by 15%, primarily due to increased order volume for new parts distribution activities and improved performance across the company's government programme activities. Sales to commercial customers were 70% of consolidated sales, compared to 69% in the prior year quarter.
“We delivered another record quarter driven by both record performance in our new parts distribution activities and the Triumph Product Support acquisition, which exceeded our expectations during the period. We also continued to drive growth in our heavy maintenance hangars out of our existing footprint. In addition to this record performance in our commercial business, we saw double-digit growth in our government business,” said John M. Holmes, Chairman, President, and Chief Executive Officer of AAR CORP.
Gross profit margin decreased from 19.5% in the prior year quarter to 19.4% in the current quarter, primarily due to a commercial programmes PBH agreement that was terminated during the quarter. This was partially offset by the favourable margin contribution from the recently acquired Product Support business.
Selling, general, and administrative expenses were US$94.8 million in the current quarter, which included US$17.5 million related to acquisition and amortisation expenses and US$4.8 million related to investigation costs.
Operating margins were 5.0% in the current quarter, compared to 6.6% in the prior year quarter. Adjusted operating margin increased from 7.8% in the prior year quarter to 9.3% in the current year quarter. Sequentially, adjusted operating margin increased from 8.3% to 9.3%. The improved adjusted margins are primarily driven by the favourable contribution from the recently acquired Product Support business.
