Aar Corp Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Aar Corp's revenue surged 19.9% year-over-year to $2.8B, reflecting rapid business expansion. This strong growth earns a score of 85/100.
Aar Corp carries a low D/E ratio of 0.80, meaning only $0.80 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 82/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.72, Aar Corp holds $2.72 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 89/100.
While Aar Corp generated $36.1M in operating cash flow, capex of $34.7M consumed most of it, leaving $1.4M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Aar Corp generates a 1.0% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 4/100. This is down from 3.9% the prior year.
Aar Corp passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Aar Corp generates $2.89 in operating cash flow ($36.1M OCF vs $12.5M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
This page shows Aar Corp (AIR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Aar Corp generated $2.8B in revenue in fiscal year 2025. This represents an increase of 19.9% from the prior year.
Aar Corp generated $1.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 89.9% from the prior year.
Aar Corp reported $12.5M in net income in fiscal year 2025. This represents a decrease of 73.0% from the prior year.
Aar Corp earned $0.35 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 72.9% from the prior year.
Aar Corp held $96.5M in cash against $968.0M in long-term debt as of fiscal year 2025.
Aar Corp had 36M shares outstanding in fiscal year 2025. This represents an increase of 0.4% from the prior year.
Aar Corp's gross margin was 19.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.1 percentage points from the prior year.
Aar Corp's net profit margin was 0.4% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.6 percentage points from the prior year.
Aar Corp's ROE was 1.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.9 percentage points from the prior year.
Aar Corp spent $10.1M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 98.0% from the prior year.
Aar Corp invested $34.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 16.8% from the prior year.
AIR Income Statement
| Metric | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $795.3M+7.5% | $739.6M+9.1% | $678.2M-1.2% | $686.1M+3.7% | $661.7M+16.6% | $567.3M+4.0% | $545.4M-0.8% | $549.7M |
| Cost of Revenue | $638.4M+5.4% | $605.9M+10.9% | $546.5M-2.0% | $557.5M+2.4% | $544.5M+19.1% | $457.0M+3.4% | $442.0M-1.4% | $448.4M |
| Gross Profit | $156.9M+17.4% | $133.7M+1.5% | $131.7M+2.4% | $128.6M+9.7% | $117.2M+6.3% | $110.3M+6.7% | $103.4M+2.1% | $101.3M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $88.7M+24.6% | $71.2M+16.2% | $61.3M-53.9% | $133.1M+75.4% | $75.9M-1.4% | $77.0M+17.2% | $65.7M-12.0% | $74.7M |
| Operating Income | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | $19.1M+1.6% | $18.8M+1.6% | $18.5M-4.1% | $19.3M+2.7% | $18.8M+58.0% | $11.9M+91.9% | $6.2M+6.9% | $5.8M |
| Income Tax | $13.5M+7.1% | $12.6M+672.7% | -$2.2M-127.2% | $8.1M+17.4% | $6.9M+6.2% | $6.5M-17.7% | $7.9M+214.5% | -$6.9M |
| Net Income | $34.6M+0.6% | $34.4M+486.5% | -$8.9M+70.9% | -$30.6M-270.0% | $18.0M+28.6% | $14.0M-41.2% | $23.8M+4066.7% | -$600K |
| EPS (Diluted) | $0.90-5.3% | $0.95+480.0% | $-0.25+71.3% | $-0.87-274.0% | $0.50+28.2% | $0.39-41.8% | $0.67+3450.0% | $-0.02 |
AIR Balance Sheet
| Metric | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $3.2B+10.7% | $2.9B+2.5% | $2.9B+0.3% | $2.8B+2.4% | $2.8B+37.7% | $2.0B+2.9% | $2.0B+0.6% | $2.0B |
| Current Assets | $1.7B+7.9% | $1.6B+2.1% | $1.5B+2.5% | $1.5B+5.0% | $1.4B+15.0% | $1.2B+3.9% | $1.2B-1.1% | $1.2B |
| Cash & Equivalents | $75.6M-5.5% | $80.0M-5.2% | $84.4M+36.8% | $61.7M+25.2% | $49.3M-28.8% | $69.2M+6.3% | $65.1M-7.4% | $70.3M |
| Inventory | $910.8M+5.7% | $861.5M+11.1% | $775.7M-1.8% | $790.0M+5.6% | $748.2M+11.4% | $671.5M+4.0% | $645.9M+5.2% | $614.2M |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $552.2M+1.7% | $543.1M+2.8% | $528.4M-2.7% | $543.2M-1.7% | $552.6M+208.0% | $179.4M+1.9% | $176.0M-0.8% | $177.4M |
| Total Liabilities | $1.7B+0.1% | $1.7B+0.2% | $1.7B+0.5% | $1.7B+6.0% | $1.6B+84.2% | $853.8M+5.4% | $810.1M-2.7% | $832.5M |
| Current Liabilities | $594.2M+10.3% | $538.5M-1.2% | $545.2M-2.3% | $558.3M+19.6% | $466.9M+9.0% | $428.2M+12.7% | $380.1M-3.4% | $393.5M |
| Long-Term Debt | $952.7M-6.8% | $1.0B0.0% | $1.0B+3.6% | $986.7M+0.6% | $981.0M+257.1% | $274.7M-0.1% | $275.0M-9.8% | $304.8M |
| Total Equity | $1.6B+25.0% | $1.2B+5.6% | $1.2B+0.1% | $1.2B-2.4% | $1.2B+3.6% | $1.2B+1.1% | $1.2B+3.0% | $1.1B |
| Retained Earnings | $1.0B+3.4% | $1.0B+7.3% | $935.4M-0.9% | $944.3M-3.1% | $974.9M+2.9% | $947.8M+1.5% | $933.8M+2.6% | $910.0M |
AIR Cash Flow Statement
| Metric | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $13.6M+130.3% | -$44.9M-140.1% | -$18.7M-185.0% | $22.0M+218.3% | -$18.6M-191.2% | $20.4M+17.2% | $17.4M+193.0% | -$18.7M |
| Capital Expenditures | $7.4M-14.9% | $8.7M+2.4% | $8.5M+2.4% | $8.3M+5.1% | $7.9M+36.2% | $5.8M-20.5% | $7.3M-19.8% | $9.1M |
| Free Cash Flow | $6.2M+111.6% | -$53.6M-97.1% | -$27.2M-298.5% | $13.7M+151.7% | -$26.5M-281.5% | $14.6M+44.6% | $10.1M+136.3% | -$27.8M |
| Investing Cash Flow | -$213.3M-796.2% | -$23.8M-543.2% | -$3.7M+53.2% | -$7.9M-49.1% | -$5.3M+18.5% | -$6.5M+25.3% | -$8.7M+25.0% | -$11.6M |
| Financing Cash Flow | $204.3M+299.8% | $51.1M+25.2% | $40.8M+669.8% | $5.3M+158.2% | -$9.1M-56.9% | -$5.8M+75.2% | -$23.4M-160.5% | $38.7M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | $0 | N/A | N/A | $0 | N/A |
AIR Financial Ratios
| Metric | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.7%+1.7pp | 18.1%-1.3pp | 19.4%+0.7pp | 18.7%+1.0pp | 17.7%-1.7pp | 19.4%+0.5pp | 19.0%+0.5pp | 18.4% |
| Operating Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | 4.3%-0.3pp | 4.7%+6.0pp | -1.3%+3.1pp | -4.5%-7.2pp | 2.7%+0.2pp | 2.5%-1.9pp | 4.4%+4.5pp | -0.1% |
| Return on Equity | 2.2%-0.5pp | 2.8% | N/A | N/A | 1.5%+0.3pp | 1.2%-0.9pp | 2.1% | N/A |
| Return on Assets | 1.1%-0.1pp | 1.2%+1.5pp | -0.3%+0.8pp | -1.1%-1.7pp | 0.7%-0.0pp | 0.7%-0.5pp | 1.2%+1.2pp | -0.0% |
| Current Ratio | 2.84-0.1 | 2.91+0.1 | 2.82+0.1 | 2.68-0.4 | 3.06+0.2 | 2.90-0.2 | 3.14+0.1 | 3.07 |
| Debt-to-Equity | 0.61-0.2 | 0.82-0.0 | 0.86+0.0 | 0.84+0.0 | 0.81+0.6 | 0.240.0 | 0.24-0.0 | 0.27 |
| FCF Margin | 0.8%+8.0pp | -7.2%-3.2pp | -4.0%-6.0pp | 2.0%+6.0pp | -4.0%-6.6pp | 2.6%+0.7pp | 1.8%+6.9pp | -5.1% |
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Frequently Asked Questions
What is Aar Corp's annual revenue?
Aar Corp (AIR) reported $2.8B in total revenue for fiscal year 2025. This represents a 19.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Aar Corp's revenue growing?
Aar Corp (AIR) revenue grew by 19.9% year-over-year, from $2.3B to $2.8B in fiscal year 2025.
Is Aar Corp profitable?
Yes, Aar Corp (AIR) reported a net income of $12.5M in fiscal year 2025, with a net profit margin of 0.4%.
What is Aar Corp's earnings per share (EPS)?
Aar Corp (AIR) reported diluted earnings per share of $0.35 for fiscal year 2025. This represents a -72.9% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
How much debt does Aar Corp have?
As of fiscal year 2025, Aar Corp (AIR) had $96.5M in cash and equivalents against $968.0M in long-term debt.
What is Aar Corp's gross margin?
Aar Corp (AIR) had a gross margin of 19.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Aar Corp's net profit margin?
Aar Corp (AIR) had a net profit margin of 0.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Aar Corp's return on equity (ROE)?
Aar Corp (AIR) has a return on equity of 1.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Aar Corp's free cash flow?
Aar Corp (AIR) generated $1.4M in free cash flow during fiscal year 2025. This represents a -89.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Aar Corp's operating cash flow?
Aar Corp (AIR) generated $36.1M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Aar Corp's total assets?
Aar Corp (AIR) had $2.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Aar Corp's capital expenditures?
Aar Corp (AIR) invested $34.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
Does Aar Corp buy back shares?
Yes, Aar Corp (AIR) spent $10.1M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Aar Corp have outstanding?
Aar Corp (AIR) had 36M shares outstanding as of fiscal year 2025.
What is Aar Corp's current ratio?
Aar Corp (AIR) had a current ratio of 2.72 as of fiscal year 2025, which is generally considered healthy.
What is Aar Corp's debt-to-equity ratio?
Aar Corp (AIR) had a debt-to-equity ratio of 0.80 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Aar Corp's return on assets (ROA)?
Aar Corp (AIR) had a return on assets of 0.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Aar Corp's Piotroski F-Score?
Aar Corp (AIR) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Aar Corp's earnings high quality?
Aar Corp (AIR) has an earnings quality ratio of 2.89x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Aar Corp?
Aar Corp (AIR) scores 52 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.