AAR quarterly sales jump 24% and full-year growth outlook tightens higher

AAR ($AIR) reported fiscal first-quarter sales of $918 million, up 24%, with adjusted earnings per diluted share rising 38% to $1.49. GAAP net income was about $40 million, or $1.00 per diluted share. Adjusted EBITDA increased 34% to approximately $117 million, and its margin improved to 12.7% from 11.7%. Commercial-customer sales grew faster than government sales.

Operating cash flow turned positive at $55.8 million, versus a $44.9 million outflow a year earlier, while net debt stood at $780.5 million. AAR now expects low-teens full-year sales growth excluding Legacy Commercial Programs, compared with its previous low-double-digit-to-low-teens range. For the next quarter, it expects 14%–16% growth on that basis. These forecasts exclude the separately announced MRO Holdings acquisition, so they describe the existing operating perimeter rather than the proposed enlarged group.

Sources:

• AAR PRNewswire quarterly results