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AAR Corp. (AIR+2.40%) has submitted its 10-Q filing for the quarterly period ended February 28, 2025.
The filing reports a 19.5% increase in consolidated sales to $678.2 million for the third quarter of fiscal 2025, compared to the same period in the previous year. This increase was driven by a 21.6% rise in sales to commercial customers and a 14.6% increase in sales to government and defense customers.
Gross profit for the quarter increased to $131.7 million, with a gross profit margin of 19.4%. Operating income was reported at $71.1 million, up from $33.0 million in the prior year quarter.
The Parts Supply segment saw a 11.7% increase in sales to $270.7 million, with operating income rising to $45.4 million. The Repair & Engineering segment reported a 53.3% increase in sales to $215.9 million, with operating income increasing to $19.0 million.
AAR Corp. reported a net loss of $8.9 million for the quarter, compared to a net income of $14.0 million in the previous year. The loss was primarily due to a $63.0 million impairment charge related to the pending divestiture of the Landing Gear Overhaul business.
The company's liquidity and capital resources included working capital of $989.6 million and cash of $84.4 million as of February 28, 2025. AAR Corp. expects its cash on hand, future cash flows, and available credit to meet its cash requirements for the foreseeable future.
AAR Corp. has amended its revolving credit facility, increasing commitments to $825 million and adjusting interest rate margins. As of February 28, 2025, $482.0 million was borrowed under this facility.
The company also reported on its ongoing legal proceedings, including a $1.8 million judgment in Russian bankruptcy litigation and a $55.6 million settlement with U.S. authorities related to Foreign Corrupt Practices Act violations.
AAR Corp. continues to focus on its strategic initiatives, including the integration of recent acquisitions and expansion of its airframe maintenance facilities in Miami and Oklahoma City.
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 March 28, 2025. To report an error, please email earnings@qz.com.