AAR Corp (AIR)
Pretax margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 38,900 | 58,300 | 121,200 | 105,100 | 64,500 |
| Revenue | US$ in thousands | 2,780,500 | 2,318,900 | 1,990,500 | 1,820,000 | 1,652,300 |
| Pretax margin | 1.40% | 2.51% | 6.09% | 5.77% | 3.90% |
May 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $38,900K ÷ $2,780,500K
= 1.40%
The pretax margin of AAR Corp has demonstrated notable fluctuations over the specified period. As of May 31, 2021, the pretax margin stood at 3.90%, indicating a relatively modest profitability before taxes. This margin increased significantly by May 31, 2022, reaching 5.77%, reflecting an improvement in operational efficiency or higher margins on revenue-generating activities. The upward trend continued into May 31, 2023, with the pretax margin rising slightly to 6.09%, suggesting sustained or enhanced profitability levels during that year.
However, a decline is observed in the subsequent year, with the pretax margin decreasing markedly to 2.51% as of May 31, 2024. This shift signals a reduction in profitability before taxes, potentially driven by increased costs, lower revenue margins, or other operational challenges. The trend persists into May 31, 2025, with a further decrease to 1.40%. This continued decline indicates that AAR Corp faced ongoing pressures impacting its pretax profitability, culminating in a significantly narrower margin compared to previous years.
Overall, the data depicts a period of initial growth in pretax margins, followed by a pronounced contraction in recent years, which warrants further investigation into the underlying causes such as changes in revenue, cost structure, or market conditions affecting the company's pretax profitability.
Peer comparison
May 31, 2025