Aar Corp. · NYSE:AIR
Aar — Q1 FY2025 Earnings Presentation
11 slides from Aar's earnings presentation, Sep 23, 2024
Slide 1: Fiscal Q1 2025 Earnings Call
Fiscal Q 1 202 5 Earnings Call NYSE: AIR September 23 , 2024
Slide 2: Forward-looking statements
Forward - looking statements 1 © 2024 AAR CORP. All rights reserved worldwide. Note: All results and expectations in the presentation reflect continuing operations unless otherwise noted. This presentation contains certain statements relating to future results, which are forward - looking statements
Slide 3: Q1 2025 highlights
Q 1 202 5 highlights As compared to Q 1 202 4 Sales $6 62 M + 20 % Adj op margin 9. 1 % +1 8 0bps Adj EPS $0.8 5 + 8 % • Solid results across our portfolio » Consolidated commercial sales increased 20% » Consolidated government sales increased 20% • Continued execution against long - term initiative
Slide 4: Parts Supply
• Sales up 5 % vs. Q 1 ’2 4 » Distribution up 26% » USM down ( 22 % ) • Adjusted operating income up 14 % vs. Q 1 ’2 4 » Favorable mix in Distribution » Additional leverage on fixed costs Parts Supply Y/Y delta Fiscal Q 1 - 25 $ millions + $ 12.9 $2 49.7 Sales + $ 3 . 8 $ 30.1 Adj op income + 100 bp
Slide 5: Repair & Engineering
• Sales growth driven by Product Support acquisition » Strong demand for airframe heavy maintenance » Airframe hangars a t near full capacity • Both inorganic and organic margin expansion » Contribution from higher margin Product Support » Efficiency gains in airframe hangars Repair & Engineering St
Slide 6: Integrated Solutions
• Sales up 6 % vs. Q 1 ’2 4 » Commercial programs up 12 % » Government programs ~flat • Adjusted operating income up 2 % vs. Q 1 ’2 4 » Lower profitability in government programs due to mix of products and services Integrated Solutions Structural margin opportunities driven by Trax; strong governmen
Slide 7: Appendix
~) : 42 AAR Doing It Right’ Appendix
Slide 8: Non-GAAP financial measures
Non - GAAP financial measures 8 © 2024 AAR CORP. All rights reserved worldwide. This presentation includes financial results for the Company with respect to adjusted diluted earnings per share from continuing operations, adjusted sales, adjusted EBITDA and adjusted operating income, which are “non -
Slide 9: Adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin
Non - GAAP financial measures A djusted sales, operating income, operating margin, EBITDA, and EBITDA margin 9 © 2024 AAR CORP. All rights reserved worldwide. Q1 FY25 Q1 FY24 Parts Repair & Integrated Expeditionary Corporate Parts Repair & Integrated Expeditionary Corporate ($ in millions) Supply En
Slide 10: Adjusted EBITDA and EBITDA margin
Non - GAAP financial measures Adjusted EBITDA and EBITDA margin 1 1 © 2024 AAR CORP. All rights reserved worldwide. ($ in millions) Q1 FY25 Q1 FY24 Sales $661.7 $549.7 Net income (loss) 18.0 (0.6) Net income (loss) margin 2.7% -0.1% Net income (loss) $18.0 ($0.6) Income tax expense (benefit) 6.9 (6.
Slide 11: Adjusted diluted earnings per share
Non - GAAP financial measures Adjusted diluted earnings per share 1 2 © 2024 AAR CORP. All rights reserved worldwide. ($ in millions) Q1 FY25 Q1 FY24 Diluted earnings (loss) per share $0.50 ($0.02) Acquisition, integration, and amortization expenses 0.25 0.08 Investigation costs 0.14 0.03 Contract t