AAR has announced its full-year financial results for fiscal year 2025, revealing consolidated sales of US$2.8 billion—marking a 20% increase on the previous year. The substantial rise in revenue is primarily attributed to the acquisition of its Product Support business and heightened activity in its new parts distribution operations.
The company also reported an improvement in operating margins, which reached 6.7% for the year, compared to 5.6% in fiscal year 2024. On an adjusted basis, operating margins climbed to 9.6%, up from 8.3% the previous year. This enhanced profitability reflects the positive impact of the Product Support division and ongoing growth in Parts Supply.
Net income for the year totalled US$12.5 million, or US$0.35 per diluted share. However, this figure includes significant after-tax charges amounting to US$115 million, related to the sale of its Landing Gear Overhaul business and costs connected to its FCPA settlement. By contrast, net income for fiscal year 2024 stood at US$46.3 million, or US$1.29 per share. On an adjusted basis, diluted earnings per share rose to US$3.91, compared to US$3.33 the year before, underlining the benefits of improved operational efficiency and increased sales volume.
Sales to commercial customers continued to represent 71% of total revenue, consistent with the previous year. AAR generated US$36.1 million in cash flow from operating activities. When excluding the impact of its accounts receivable financing programme, this figure stood at US$28.5 million for the year.
