AAR CORP. Reports 19.9% Revenue Growth to $2.78 Billion for Fiscal Year Ending May 31, 2025

AAR CORP. reported a significant increase in financial performance for the fiscal year ending May 31, 2025, with consolidated sales reaching $2.78 billion, a 19.9% increase from the previous year. This growth was primarily driven by a 20.6% rise in sales to commercial customers, totaling $1.98 billion, and an 18.1% increase in sales to government customers, amounting to $804.4 million. The company attributed this performance to strong demand in its Parts Supply segment and the successful integration of the Product Support business acquired in the previous fiscal year.

The company’s profitability also improved, with gross profit rising to $527.7 million, a 19.3% increase compared to the prior year. The gross profit margin slightly decreased to 19.0% from 19.1%, reflecting challenges in the government segment due to inefficiencies related to the shutdown of a facility in New York. Operating income surged by 43.3% to $185.2 million, bolstered by the acquisition of the Product Support business and increased sales volumes across various segments.

Strategically, AAR CORP. has focused on optimizing its product and service portfolio, which included the divestiture of its Landing Gear Overhaul business to concentrate on higher-margin offerings. The company has also made significant investments in digital technologies, enhancing service delivery and operational efficiency. Notably, AAR has expanded its airframe maintenance facilities in Miami and Oklahoma City to meet growing customer demand, with both expansions expected to be operational within the next 12-18 months.

Operationally, AAR CORP. employed approximately 5,600 individuals as of May 31, 2025, with a significant portion of its workforce based in the United States. The company has also seen a notable increase in customer engagement, winning long-term contracts with major airlines and government entities, including the U.S. Navy. The firm backlog stood at $537.2 million, with expectations to recognize approximately 75% of this backlog as revenue in fiscal 2026.

Looking ahead, AAR CORP. remains optimistic about the long-term growth prospects in the aviation aftermarket, driven by favorable trends in both commercial and government sectors. The company plans to continue investing in its business and capitalizing on emerging opportunities, particularly in the government market, while navigating potential challenges related to economic conditions and geopolitical factors.