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AAR CORP. and its subsidiaries are referred to herein collectively as AAR, Company, we, us, and our unless the context indicates otherwise. AAR was incorporated in 1955 and we are a leading independent provider of solutions to the global aviation aftermarket.
Operating margin is thin at 6.47%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 19.9%, still solid. Free cash flow declined 90% despite revenue growth, conversion is weakening.
Free cash flow declined 90% versus the prior year, cash generation momentum has weakened. Net debt of $963M represents 688.1x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$3.13B
▲ +19.9% YoY
Net Income (TTM)
$171M
▼ -73.0% YoY
Op. Margin
8.56%
▲ +0.9pp YoY
ROIC
8.27%
▲ +0.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$60M
▼ -89.9% YoY
Op. Cash Flow (TTM)
$95M
▼ -17.2% YoY
Net Debt
$901M
Cash & Equiv.
$79M
5Y CAGR: +6.1%
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