AAR (NYSE:AIR) shares rose over 4% pre-market today after the aviation services provider reported fourth-quarter fiscal 2025 results that exceeded expectations, driven by robust demand across both its commercial and government segments.
Revenue for the quarter rose 15% to $755 million, handily beating analyst forecasts. The company saw strong performance in new parts distribution and integrated solutions, fueling top-line growth.
Adjusted earnings per share came in at $1.16, surpassing expectations by $0.16. Adjusted EBITDA rose 19% to $91 million, while the EBITDA margin improved to 12.4% from 11.6% a year earlier, reflecting increased operational efficiency and a favorable shift in sales mix.
AAR also made notable progress in reducing debt, bringing net leverage down to 2.72x from 3.58x following its Product Support acquisition. Operating margin nearly doubled to 9.7% from 5.0% in the prior-year quarter, supported by scaled growth in parts supply and disciplined cost management.
For the full fiscal year, AAR posted $2.8 billion in revenue, marking a 20% increase, while adjusted diluted EPS climbed 17% to $3.91. Although GAAP net income declined due to non-operating charges, adjusted EBITDA soared 34% to $324 million, reinforcing the company’s strong financial momentum.
