AAR Corp. Sees 20% Sales Surge Despite Reporting Net Loss in Q3 2025
Wood Dale, Friday, 28 March 2025.
AAR Corp. witnessed a remarkable 20% year-over-year sales increase to $678 million in Q3 2025, but faced a GAAP net loss of $9 million, demonstrating significant operational efficiency improvements with adjusted EBITDA growth of 39%.
Financial Performance Overview
AAR Corp. (NYSE: AIR), headquartered in Wood Dale, Illinois, reported mixed financial results for its third quarter fiscal 2025, ended February 28, 2025. While achieving sales of $678.2 million, the company posted a GAAP net loss of $8.9 million, compared to a net income of $14.0 million in the same period last year [1][2]. The loss primarily stemmed from a substantial pre-tax charge of $63.7 million related to the planned divestiture of the company’s Landing Gear Overhaul business [3].
Operational Efficiency and Market Performance
Despite the reported net loss, AAR demonstrated strong operational performance with adjusted diluted earnings per share of $0.99, exceeding analyst expectations of $0.96 per share [7]. The company’s adjusted EBITDA reached $81 million, marking a significant improvement in operational efficiency with the EBITDA margin expanding from 10.3% to 12.0% year-over-year [1]. In the market, AAR shares have shown resilience, climbing 11% since the beginning of the year, with shares reaching $68.08 in recent trading [7].
Strategic Developments and Future Outlook
The company has secured several strategic agreements that position it for continued growth. These include multi-year exclusive agreements with Unison for parts distribution and Chromalloy for PMA turbine blades, as well as a significant contract with Cebu Pacific Air for engine nacelle maintenance services [1]. The anticipated sale of the Landing Gear Overhaul business for $51 million is expected to conclude in the fourth quarter of fiscal year 2025 [1], representing a strategic shift in the company’s portfolio management.