AAR Corp Q1 revenue beats estimates as demand for air travel increases
AIR•AAR reported fiscal Q1 revenue of $918 million, up 24% and above the $880.68 million estimate, while adjusted EPS rose 38% to $1.49, beating the $1.29 estimate. The company agreed to acquire a 65% controlling interest in MRO Holdings and raised its fiscal 2027 sales-growth outlook to the low teens, excluding LCP.
1. Quarterly results
AAR said strong air-travel demand drove increased demand for its services. Fiscal Q1 revenue rose 24% to $918 million, compared with analyst expectations of $880.68 million, and adjusted EPS increased 38% to $1.49, above the $1.29 estimate. Net income was $40.10 million.
2. Outlook and segments
AAR expects Q2 sales growth, excluding LCP, of 14% to 16% and an adjusted EBITDA margin of 13.0% to 13.4%. It raised its fiscal 2027 sales-growth outlook, excluding LCP, to the low teens. Parts Supply and Repair, Engineering & Software segment sales each grew 31%. The company also agreed to acquire a 65% controlling interest in MRO Holdings.
