AAR Corp (AIR)
Net profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 12,500 | 46,300 | 90,200 | 78,700 | 35,800 |
| Revenue | US$ in thousands | 2,780,500 | 2,318,900 | 1,990,500 | 1,820,000 | 1,652,300 |
| Net profit margin | 0.45% | 2.00% | 4.53% | 4.32% | 2.17% |
May 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $12,500K ÷ $2,780,500K
= 0.45%
The net profit margin of AAR Corp has exhibited notable fluctuations over the period from May 31, 2021, to May 31, 2025. As of May 31, 2021, the net profit margin stood at 2.17%, indicating that approximately 2.17 cents of profit were realized for every dollar of revenue. This metric increased significantly by May 31, 2022, reaching 4.32%, reflecting improved profitability and possibly more efficient cost management or favorable revenue growth. The upward trend continued into May 31, 2023, with the net profit margin marginally rising to 4.53%, suggesting sustained profitability and efficiency improvements.
However, from the peak in 2023, a downward trajectory commenced. By May 31, 2024, the net profit margin declined sharply to 2.00%, signaling a reduction in net profitability relative to revenue. The downward trend persisted into May 31, 2025, with the net profit margin further diminishing to 0.45%. This substantial decrease indicates a significant erosion of profitability, which could be attributable to increased costs, competitive pressures, or other operational challenges impacting the company's bottom line.
Overall, AAR Corp's net profit margin experienced a period of growth in the early years, reaching a peak in mid-2023, followed by a pronounced decline over the subsequent years. The recent figures suggest a deteriorating profitability position, necessitating further analysis to identify underlying causes and assess the company's future outlook.
Peer comparison
May 31, 2025