AAR Corp (AIR)
Pretax margin
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 38,900 | 4,900 | 36,500 | 90,700 | 58,300 | 74,900 | 84,200 | 83,300 | 121,200 | 121,500 | 122,500 | 120,400 | 105,100 | 94,100 | 106,400 | 97,300 | 64,500 | 26,000 | -14,300 | -7,800 |
| Revenue (ttm) | US$ in thousands | 2,780,500 | 2,682,500 | 2,571,600 | 2,430,900 | 2,318,900 | 2,215,700 | 2,169,500 | 2,093,900 | 1,990,500 | 1,913,300 | 1,844,400 | 1,811,200 | 1,820,000 | 1,781,500 | 1,739,600 | 1,706,600 | 1,652,300 | 1,631,200 | 1,774,000 | 1,931,300 |
| Pretax margin | 1.40% | 0.18% | 1.42% | 3.73% | 2.51% | 3.38% | 3.88% | 3.98% | 6.09% | 6.35% | 6.64% | 6.65% | 5.77% | 5.28% | 6.12% | 5.70% | 3.90% | 1.59% | -0.81% | -0.40% |
May 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $38,900K ÷ $2,780,500K
= 1.40%
The pretax margin of AAR Corp has demonstrated notable fluctuations over the analyzed period. Starting from a negative value of -0.40% as of August 31, 2020, the margin further declined to -0.81% by November 30, 2020, indicating unprofitability in that period. Moving into 2021, the company experienced a significant improvement, with the pretax margin turning positive at 1.59% on February 28, 2021, and further increasing to 3.90% by May 31, 2021. The upward trend continued into the subsequent quarters, reaching 5.70% on August 31, 2021, and maintaining strength with margins around 6% through November 2021 and February 2022.
From mid-2022 through early 2023, the pretax margin remained relatively stable, fluctuating slightly around 5.2% to 6.7%. However, starting in the latter half of 2023, a downward trend emerged, with margins decreasing to 3.98% in August 2023 and approximately 3.88% by November 2023. This decline persisted into early 2024, with the margin falling to 3.38% in February 2024, and further decreasing to 2.51% by May 2024.
The most recent data points indicate a continued decline, with the margin reaching 1.42% in November 2024, then sharply dropping to 0.18% in February 2025. Thereafter, a slight recovery is observed, with the margin increasing to 1.40% as of May 2025. Overall, the pretax margin exhibits a pattern of initial losses, subsequent recovery and expansion during 2021 and 2022, followed by a contraction starting in late 2023 and continuing into early 2025, with periods of minor resurgence.
Peer comparison
May 31, 2025