By Connor Hart
AAR swung to a profit in its fiscal second quarter as sales rose, boosted by the company's parts supply business.
The aviation services company on Tuesday posted a profit of $34.6 million, or 90 cents a share, for its three months ended Nov. 30. That is compared with a loss of $30.6 million, or 87 cents a share, a year ago.
Stripping out one-time items, earnings were $1.18 a share. Analysts polled by FactSet had expected adjusted earnings of $1.03 a share.
Sales rose 16% to $795.3 million, topping Wall Street expectations for $763.6 million.
Chief Executive John Holmes attributed the higher top line primarily to the company's parts supply business, where AAR continues to gain market share and sales climbed 29%. The company closed two acquisitions during the recent quarter, one of which will support the parts supply business moving forward.
"We also delivered growth in our repair and engineering segment, as we continue to drive efficiency in our hangars and additional volume to our component repair facilities," he said. "Finally, we saw another quarter of increased sales to government customers, which were up 23%."
Looking ahead, AAR guided for total sales to grow 20% to 22% during the current quarter. Analysts were looking for third-quarter sales of $801 million, up 18% from last year.
For the year, total sales are expected to be up approximately 17%. Wall Street had forecast fiscal-year sales of $3.17 billion, marking a 14% increase.
Shares climbed 3%, to $92.19, in after-hours trading. The stock ended the regular session up 1.6% at $89.46.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 06, 2026 16:31 ET (21:31 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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