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AAR Corp. (AIR+1.46%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing reports consolidated sales of $686.1 million for the three-month period, a 25.8% increase from the prior year. This growth was primarily driven by a 29.9% increase in sales to commercial customers.
Cost of sales for the quarter was $557.5 million, resulting in a gross profit of $128.6 million, a 24.4% increase from the previous year.
Selling, general, and administrative expenses rose to $133.1 million, largely due to costs associated with the resolution of FCPA investigations.
The company reported an operating loss of $2.3 million for the quarter, compared to an operating income of $38.3 million in the previous year.
Interest expense increased to $19.3 million, reflecting higher interest rates and increased borrowings.
AAR Corp. recorded a net loss of $30.6 million for the quarter, compared to a net income of $23.8 million in the previous year.
Cash provided by operating activities was $3.4 million, while cash used in investing and financing activities was $13.2 million and $3.8 million, respectively.
As of November 30, 2024, AAR Corp. had a working capital of $939.7 million. The company expects its liquidity to be sufficient to meet its cash requirements for the foreseeable future.
The filing also details the company's recent acquisition of Triumph Group's Product Support business and the planned divestiture of its Landing Gear Overhaul business.
The company continues to face legal proceedings, including a Russian bankruptcy litigation and a performance guarantee claim related to its former Composites business.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the AAR Corp. quarterly 10-Q report dated January 8, 2025. To report an error, please email earnings@qz.com.