AAR rises after Q1 results beat estimates
AIR•AAR reported first-quarter adjusted earnings of $1.49 per share, up from $1.08 a year earlier, and forecast annual sales growth in the low teens. It also agreed to acquire a 65% controlling interest in MRO Holdings for about $1.8 billion.
1. Quarterly results and outlook
AAR shares rose about 7% to $123 in premarket trading after the company reported first-quarter adjusted earnings per share of $1.49, compared with $1.08 a year earlier. AAR sees annual sales growth in the low teens, compared with its previous forecast of low double-digit to low-teen growth.
2. MRO Holdings deal
AAR said it is acquiring a 65% controlling interest in aircraft maintenance company MRO Holdings for about $1.8 billion. The transaction is expected to close in AAR’s fiscal third quarter ending February 2027.
3. Termination fee
AAR will pay a termination fee of $100 million, or $150 million if the deal is terminated because competition approval is not obtained, SEC filings show.
