AIR - Earnings call transcript Q4 2024

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Operator

Good afternoon, everyone, and welcome to AAR's Fiscal 2024 Fourth Quarter Earnings Call.

We are joined today by John Holmes, Chairman, President and Chief Executive Officer; and Sean Gillen, Chief Financial Officer.

Before we begin, I would like to remind you that the comments made during the call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.

Accordingly, these statements are no guarantee of future performance. fiscal are Factors the annual to section Form for uncertainties and earnings report be and XX, XX-K Risk May the the of the on risks file discussed we SEC company's in release and XXXX, with These which ended shortly. expect year the company's

call to Certain the or the anticipated circumstances in forward-looking assumes A non-GAAP In discussed release. future information today. the providing be no obligation set company's the these to unanticipated events. of reflect company statements, to financial will earnings GAAP forth provide non-GAAP updates most the reconciliation or measures on measures is comparable

of shortly website. replay for conference completion available on be on-demand after AAR's A listening call of this will the the call

to time, call and would the President Chairman, this over John AAR's I Holmes. CEO, like turn to At

John Holmes

for Thank us to joining this afternoon. you, you and thank everyone

their I the strategic largest FY and We thank our are during delivered executed ever very our for efforts. proud we of want across completed well our to performance we sharpened focus, record tireless AAR 'XX. company. acquisition the team initiatives, advanced

our are services. structural tailwinds from for and an high We aging fleet, benefiting drives demand of air which levels from travel aftermarket

before within Supply, company more than Solutions. X focused Our & main segments: is Parts Engineering our ever Repair Integrated and

and margins. our 'XX We are FY the these higher each FY We these our deliver in 'XX. in X of our saw segments making to improve benefits investments them and to drive continue efficiency growth, investments expect from in

the $X.X billion, delivered the prior With over that, of full results record will year FY more 'XX XX% sales year. We to turn I up specifically.

from only one we of of Triumph ownership Support to the fiscal share adjusted X.X% continuing XXXX, And from Our adjusted quarter operations of increased compared operating to year. $X.XX record per $X.XX business. reflects last Product diluting higher-margin which generated X.X% margins in

Support from acquisition margin from a and and by quarter our in X.X% impact operating and Parts Adjusted a Product year-over-year distribution record contribution record due driven basis our strong X.X% year-over-year, points Supply in and government-integrated Support ending the to activities. Sales solid of execution both to improved increased fourth the XX% the by maintenance. performance to airframe XXX was Product solutions Our year.

of we the I'm our of segments. into now have that more the each some Given for changes to the to portfolio, go a in made going results detail little X

Parts serviceable grew Distribution Supply well X segment straight quarter, XX% opportunity and driven profitable Distribution sales. gains extremely significant This and organic of Supply executed Parts in XX% growth. double-digit tenth of Parts represents segment, where growth. demand volumes, parts' for government is Supply. and Revenue activities, market share additional fourth our contains posting continued commercial by largest we the about USM. strength. have quarter material organic the or and use new most distribution very

are partners We a largest which aircraft independent all of advantage, types. the serve OEM and our to distributor eliminates is status key and independent allows OEM conflicts our parts strategic

a exclusive these key all are with and relationships on deep an have We basis. few OEMs,

had we Support starter auto expansion agreement several wins the our components, valve and including Triumph product distribute components. and multiyear to of extension to our meaningful multiyear to contract Support electromechanical new with Triumph and VXXXX with and its its our sign the continue Product agreements, with distribute new in line engineering Product actuation We exclusive quarter, expansion to agreement

into gain business new and as electronic share we at about market and general aviation move forward, the We distribution similar are continuing optimistic end lines going components pace a to in markets. particularly add

year-over-year with and well supply Parts sequentially sales in conditions. X% USM. the USM It represents has about up tight despite performed XX% of sales. X% Supply up quarter, extremely total also

have -- disassembly versus a we in significant to this have reminder, and new at individual the sell parts then acquire and savings refurbished used aircraft design a engines, repair [indiscernible]. business, our regular As them plan, customers

which activity and and acquire aircraft an is also important whole and can in resell We engines, our create results. lumpiness

asset in quarter. these XX% growth the sales, sales was parts Excluding whole USM

This deep supply by expertise and parts, underlying reflects market recurring use significant our parts position world-class evaluate in global strong growth a source relationships underpinned sales to force. to assets

to the to used, will the continue We benefit as a tailwind to to believe increasing of adoption MROs our this USM for of and years benefits continue buying we be from unlock come. airlines business and

demand full particular, engine constrained to other in and issues engines, retirements new the is few as the such aircraft are high GTF this, with asset with relatively due availability. assets Whole driving variants, in coupled

on supply This next new performance. will us retirements, over pressure we aircraft lead engine new of expect and to the the allow parts production and to alleviate of aircraft continue will more engine drive to and individual availability variant based USM. However, recovery improved few in overall whole greater years growth which assets and our

& Repair Engineering.

of Support repair, consists Product and heavy Triumph XX% & initiatives. component well airframe parts Repair PMA growth to as as Turning the Revenue maintenance including this quarter. segment our was Engineering, in

[indiscernible]. hangar track was Excluding beginning in operation for million capacity relatively acquisition, remain in second the City add will approximately $XX Miami of Support XXXX. the annual of expansions Product That our said, Oklahoma expansions These half on flat sales. calendar revenue and

acquisition early X, QX scale acquisition of exceeded the The brings differentiated on unlocking the additional of closed in expectations March value. we Product and on stages increased and fourth Triumph of capability. repair Support, significant are which beginning the the our At we quarter in

facilities. and are our Island beginning in Wellington, In and we Support terms facility Long cost existing Prairie, the Product of to synergy, Kansas consolidate Grand Texas

the previously on are million achieve $XX 'XX. track FY announced by of target QX synergy We associated cost to

in-house brings USM to programs work refurbishment can our that also for capability support repair now commercial and business we use The activities.

aftermarket addition, are In accelerate we our further resources Product Support's our development to growth. government and commercial talented leveraging sales force business

to are make to PMA for that on working develop. have continue We pipeline initiative. FAA actively approval and several also our additional received We progress parts significant we

the and remain this the a meaningful acquisition the next Support into growing integrating the to PMA came in effort committed process existing with are with business combined We several this over Product years. initiative that business of PMA

Integrated Solutions.

commercial this as Solutions, we what segment support with segment, as in logistics in Integrated management Turning of aircraft supply we is the of supporting government well majority government customers. do and The to [indiscernible] this chains offering. and operators

term saw long average our volumes with a fashion. up in are this operators segment parts, and X XX% needs we programs tenure state a sourcing are in aftermarket the programs. in F-XX of the maintenance, of business. Our programmatic general, Revenue logistics greater was and we and year an annuity across In years, an ago, air from craft meaning managing is department

software globally. has gone ago and year the a offering, integration TRAX best-in-class airlines is nearly we ERP the know, acquired supports business and you TRAX customers which a MRO XXX well. As maintenance

the be runway business channel for TRAX the core customers and and a it We have sales TRAX core growth. to are parts reach may business introducing offering. has new not groundwork that been to for a able by for growing and a laying previously long services to our high-margin is TRAX

update concludes That for core X our the segments.

shelters segment Our Ukraine segment, spending to are fourth volumes products depressed prioritize Expeditionary AAR. down pallets this for supporting both non-core in continued Sales on that the and government as were Services forces. due XX% is in

and to during we However, expect we the 'XX. incredibly that now forward, volumes Overall, visibility FY delivered. going and on year normalize have the am proud I funding we quarter of

over it that, Sean. I'll to with turn And

Sean Gillen

$XXX XX% quarter Thanks, John. million. to Total in sales the grew

impacts organic acquired for of was Excluding growth revenue product the the recently X.X%. the support quarter business,

increased sales of consolidated XX% an our Our on commercial segments. X customers in all basis core X% organic to or with growth

as to drive continue we as [indiscernible] expanded sales well. and lines product sales product distribution lines commercial won Our on existing growth newly

On government recovery sales points volume or operating across distribution basis to for quarter. Parts an order also parts adjusted Our airframe an sales Supply increased on improved our driven X.X% margins XX and XX% basis operating XXX XX% our decline increased improvement an was activities. organic organic and by driven increase X% the margin basis, new points government prior program ongoing by maintenance. from organic from basis, profit increased an X.X%. Adjusted a by in activities The

XX.X%. margin EBITDA basis from increased X.X% points Adjusted XXX to

the continued map our over shifts margin the clear term road realize a medium our Support have towards We We Product improvement mix higher-margin segments. for as synergies.

the efficiency capacity online. projects and our expansion come maintenance to airframe We initiatives airframe roll maintenance continue out improvement new

Net same million as the interest $XX.X the reflecting and of diluted acquisition, Support approximately million, expense Average quarter shares. Product expense the be count we was the was expect QX. in financing XX.X to for quarter share QX interest the

rate Our effective adjusted effective XX.X%. tax XX%. rate approximately FY for be 'XX, increased to expect XX.X% to we tax adjusted from our And

be diluted EPS for growth slightly expect our and it reflecting to the in increased was accretive expansion. Support Adjusted a earnings the $X.XX, Product dilutive we benefit to record acquisition margin 'XX. of FY to The but from quarter, $X.XX

over Arkwin greater our and lines by growth the the U.S. gain and in several detailed well in AeroControlex quarters impacted ramp-up to of results Growth the million, grew to with X% was we distribution in purchases $XXX Supply the growth we've last and consistent in to distribution quarter by was With driven growth segment. that, market share. the turn growth continue The sales I'll by as experienced double-digit foreign continued as XX% as positively the by X% both Parts U.S. governments.

as USM quarter of were had USM significantly. up Our strong sales a activity parts

types However, in for of offset remains USM these was decline growth largely and transactions. supply a [indiscernible] by this constrained larger

driven by margins. XXX by operating customers increase distribution, basis The contributed benefited and from points the adjusted to quarter, to mix. XX.X% also Supply which sales Parts in the increased improvement in margins to government distribution scale in

hangars heavy the million gains by $XXX certain continue & in growth in inorganic adjusted integration basis the Repair operating were organic and repair impact strong component work. $XX Repair XXX segments. our to sales the gear and points & to increased XX.X% maintenance hangars. of well, increased roll-off sales in progressing continued Engineering to look repair Engineering contributed basis, Support offset quarter, driven efficiency we Product the for The capabilities, in million. by and to remains an were Support revenue XX% fourth by the of in Demand to these the acquisition margins this is Product and drive flat growth quarter. landing as On

we to expansions of capacity paperless forward, and once further segment initiative margin Going from the drive they the synergies, online realization this in expect FY hangar in Support come of rollout expansion 'XX. our Product

department programs. state growth the by decreased TRAX. based XXX our within Integrated to government points program, $XXX the Integrated Solutions Solutions operating X.X% F-XX quarter increased mix sales by driven margin to adjusted from million, basis on and program in in XX%

acquisition Support and Turning net X.Xx as debt to reduced operations the delever activities the the the in to This from of by consolidated we QX. operating quarter X.Xx Cash million EBITDA cash provided growth at flow allowed generation cash. non-product was closing EBITDA forma of by adjusted [indiscernible]. to at Product $XX flow the end from inventory to support us continuing pro

We to this we'll in reduction to the business and are with invest debt pleased and leverage in continue balance reduction. continued opportunity

capital flexibility and to structure value. decisions sufficient business sheet our make balance manage to and us Our maximize affords shareholder

With John. that, I back over the to turn will call

John Holmes

full margin-accretive the Product of Thank the X-year XX% be margin Great. Considering of operating Support this X- expected operating to last acquisition. updating Product acquisition, you, Investor will including we include our margins. adjusted at our We year to adjusted previously Sean. communicated to plus X% the target accretive Support that are impact results, that year's first Day we

to plus XX.X% Product the margins. targets translates of increased out laid the in that as we the acquisition a hitting are year XX.X% and adjusted to confidence XX.X% EBITDA a increasing -- result XX.X% ago. This EBITDA We our to plus Support

XX% sales adjusted to EPS over We average growth annual annual ability years. are XX% and growth our the X to deliver average in next an XX% on X% to of confident to organic X organic

continue In strong, should demand. be supply to revenue very we continued are new Parts aftermarket commercial next to 'XX, the benefit and respect growth parts the retired continue lines over distribution tight limit In expect although in we will the anticipate from distribution growth margin more ramp-up With Supply, will FY USM, likely expansion. aircraft growth new until years. to demand and few of

Oklahoma our expansions In to engineering, repair until Miami will and largely maintenance City 'XX. airframe FY in our come be online in continue hangars and full

to to higher and So greater continue drive existing we footprint in out the expect profitability of efficiency meantime. our

well and likely positioned solutions, in our acquisition. respect FY 'XX, new pipeline we component margin support the full, With 'XX DoD's commercial volume to we drive Product integrated during from of we the be expansion the integrate and best government continue Support remains opportunity would repair, realize expect as practices of commence not government support FY and although And additional the in applying to awards synergies until and to fleet. to interest

FY and year we Day, on adjusted X%. a and at 'XX our in those Last strategy of of made QX outlined we vision, specifically, we margin objectives. to XX% Looking expect progress to XX% a Investor of FY executing revenue approximately growth tremendous operating 'XX, and

position expansions, through continue airframe and our integrated in broke our higher differentiated margins ever We large TRAX, on maintenance to expand our Supply, investments drove capability. completed leadership efficiency acquisition in Parts ground and

We and well on I'm we our to strength markets, are exceptionally our positioned about the seeing future. in are capitalize very excited that

turn it I'll to operator over that, the for questions. With

Operator

first Our Instructions] from of Securities. [Operator Truist question line Ciarmoli with the Michael comes

Michael Ciarmoli

on just Just that margins the that down last the said are item What dipping puts more sequentially Is driving takes off and that last for quarter? you margins. X% sequentially? seasonality just the

John Holmes

it are past, of we in as the much Yes, aircraft aircraft the do that's business severe X.X%. QX airlines is last that X% it a because although a years we're And working was bit I component we're obviously, than increase the experience volumes though the exactly during have Even it. it's bit in still year. year-over-year, on and the less year It's less forecasting flying the nice a seasonality summer mean, seasonality. was this

Michael Ciarmoli

don't to expense then the confused, the got same. guess, the in margin a I'm it's I a long the CAGR been I'm And just -- the is but expansion, it. if day. targets, bit you've got term. interest know Got little organic you've Presumably, short some higher EPS but I

you up with pro lower. organic can had reconcile take forma 'XX, I'm I What's of starting to I something come I'm in annualized can come Triumph, $X.XX that get midpoint up years I actual if because come guess at an the going basis, I number $X -- here for can your -- quarter with delever with You're point these on trying I and or one a up X -- my just to but targets.

these we should how interpret targets? So

John Holmes

a whole interpret includes expect, same organic would growth curve Triumph. that I to as applying shifted the do up, meaning We assumptions has the we are base higher yes.

Michael Ciarmoli

'XX, So million for like an at assumptions take annualized give $XXX off I make base? that or closest of and margins take, could hits my that those

John Holmes

That's right. right. That's

Michael Ciarmoli

Okay.

helps. And that just had. That one I then Okay. last

and you get I I it color Just like tight. out seeing struggles Airbus in mean USM, aftermarket other Boeing the any there are the on mean I it are seems parts marketplace? this What with you hard is changes? kind behavioral continues there. just any airline the to of benefit. can customers get any from out give material the it lay of or out Obviously, to But there? Any color land

John Holmes

that Yes, couple sure. a of I different come at ways.

for a First you're all a perspective. demand component But from less less carriers little strong of some -- remains customers, as a still seeing from great very of large and, but of strong. lower-cost is extremely perspective, the of out the United, bit strong, bit would little carriers we expect. from demand maybe maybe for all, a strength parts perspective of that we maintenance our extremely larger course, like a do And repair overall

everything tight bifurcating sales USM. all now. reasons, whole quarter sales, sales. as sales, for is last in part that are quarter very on even our tight, parts and very though the the on well we demand XX% drove that individual first saw we sales. getting parts, growth executing as of on very We asking really is started individual started very, well right individual those Part and the parts You into USM asset highest that hands

soon by. really mainly wing And in tighten we've Whole on whole difficult available, last few seen quarters are are assets, become going those meaning the to up engines those engines assets, market as like expect engine increasingly of because they of they're all than come cetera. as when to exactly to new the but operator that that's predict alleviate, issues, difficult are an very it's to we et to because more Again, to us GTF, going occur. guys they that worth

Operator

Subin comes next Our Bert with question from of the Stifel. line

Bert Subin

below, organic something X% maybe to probably to on John, a target. XX% note commentary up to for imply to that relative little I that longer-term the X.X% XX% that growth, would pick guess XQ XX% around just on last

maybe So it. end you below about go X.X% plus? changes think next to lower of growth of through time being as quarter to sort What quarter being how that, sort a we get this do of we

John Holmes

of see of quarter, things. Triumph But to this we the few loosening we those expect you've drive we as Again, in the deals in as as increasing some bit growth. so A continue seasonality supply of that's end organic up will market, Yes. to all it. integrate got continue Support, ramp sign, driving we a to new distribution continue U.S. we that

Bert Subin

distribution good. to quarter Okay. was really follow-up this quarter XX%. last And was maybe, want just growth I XX%, a I the on say, guess, side,

I You've start got for several don't going but the another to quarters. deal, believe that's Triumph

So meantime, that distribution, in sort for we double -- like expect runway growing a period digit there what's just of of in a the keep time? to the growth is double-digit

John Holmes

this we Yes. fiscal And see that through continuing year.

Bert Subin

Got it. And then...

John Holmes

some And on for same-store but that as demand about the -- place well. in contracts strong also we that the we've if out out of layering think a there, it's continue mentioned, had sales, it our of of just terms new again, see that's mature of you to because deals you agreements overall growth healthy year in

Bert Subin

the I side. -- that's that's commercial And mainly Okay. on mean,

You in government business a And to Is there break distribution have of down the going sort [indiscernible]. has you mentioned obviously, potentially growth here. been? way a into where

John Holmes

this quarters, inflection last Yes. had growth and Great That to and in on into bookings several the We in did [indiscernible] now decline quarter. quarters sales. point we see of been see question. a return an terms in government did of a distribution for nice couple

backlog the that we FY of we based to government have. out expect growth distribution through on would 'XX So continue

as for product our beyond significant government. on by some lines in of the build 'XX the be and force presence the be But as market, and build I those would a we more electronics, we relatively out [indiscernible] are out The kind that in early and we've new the focus return to us. as distribution encouraged as wins 'XX had efforts growth that and those in We're on to contributors. sales view of will would expect commercial more and growth well

Bert Subin

Got it.

leverage just did. one at the pace see Pretty then encouraging And to me you, down for net it the for Okay. last Sean. ticked

deleveraging? we down what I over X target? Xx next talked that sort from getting expect about future the of think should the closer years. Is you've still to And

Sean Gillen

I've be Yes, to that's leverage. long-term of right. mentioned, the before, bat. acquisition, there. first net that being Target to quarter talked time is range But you to that very that as line right on on back off X-year Xx Xx of X able the to take leverage that, appropriate the X had to into the we pleased kind get to focused frame, And getting turns by with down time get as

Operator

Our next the line question comes Scott Research. of [indiscernible] from

Unknown Analyst

Supply. Parts I quarter in Sean, ask slides John, at distribution. XX.X%, on mentioned mix favorable to were strong and They wanted and the margins at

So we is point should FY I'm just be wondering, for we jumping using is that Or more there 'XX? there using? off as that margin normalized be -- a should a

Sean Gillen

benefit higher side. It those and the of mixed with bit sales margin the be improved, Yes. part than government as the a a little commercial was distribution tend had that to the side mixed benefit on associated

So that it. was of part

that bit that XX%. higher So high is kind were XX.X% of a in past than the few quarters, I which more think

sales point right jumping continue in some ramp drive in the to right look new of Code somewhere get we and ZIP somewhere lines good volume to think But is point. as I off that to up. and starting incremental these a product So that we margin

Unknown Analyst

airlines seen about And in recently, Okay. market. the domestic we've U.S. overcapacity, talking especially then

low-cost are parts domestic-focused whether also hangars any less then wondering, slowdown, your or well? bookings a from they ordering U.S. And in seeing of it carriers? just be carriers as are more I'm So you sort for

John Holmes

Yes.

see seeing United, of And to So largest we We're cetera. bit a the of from bit et our customers. demand pull-back have the of a some seeing out of those exceptionally to fill quick demand of softness of kind little Deltas, very seen a any strong shift. Southwest. out -- larger continue are carriers, the larger the seen like guys. But those carriers we're have the We've lower-cost been up carriers the

fiscal healthy. So very the be have we we rest given environment expect again, overall, remains through to the of the And the visibility year, in the hangars full.

would very is that would parts us assets a of you strong to go If service board, hands the aircraft constrained get positive be across thing fill need do again, on leading demand. and it's and From to perspective, supply. that see retirement, to we for out which, do see a the come our we still we very that softening because

Operator

Blair. Our comes Louie line the William question with of from DiPalma next

Louie Dipalma

your You that, have distribution you to with engineering. expansion many APAC opportunities the partners? do add how large business? announced your to of distribution APAC Related auto is OEM to And other

John Holmes

Yes.

the front the that But distributing. market vein, I market capability now, of terms that Triumph facility expansion In of specifically, OEM in and for going that region been have parts particular. a want Having is the -- large we business to for answer. the of agreement, right me is continued the repair that get they've of and presence also distribution, help same APAC a us. in Thailand, we to have don't it's to great we're we it Japan, in to in that in we In distribution growing speak partners an our in with synergistic physical with number that joint a can growth expect venture partner announced also in

dialogue go Triumph now. further those encouraging having result expansion we about So but a that having facility of there together. potential things are It's as some still early, Asian course, of over

Louie Dipalma

synergies initial Great. year the taking that operating half And rate higher be threshold? of the should margin the some first the Sean, in into than will when approach XX% the for, account half? exit And second

Sean Gillen

Yes.

the end have this the in as past this as is well. margin, by see move of target. we'll this we'll through year, medium it, but think the targets is about expect which getting we increase, our operating we year, benefit fiscal to as will to the with through terms revise of synergies But we got of year operating one, that as the some margin the XX% And year, we So in year. is the towards similar move we goal

Louie Dipalma

one. distribution And expect lumpy? year? The return that sustainable this in should improved. growth, government is Or one last The to to that be Great. fiscal we

John Holmes

X coming different I government. in the government growth got backlog areas: rate would X mentioned, right parts would as is break of parts. government. be from now. one, to that you down expect consistent One, to into the growth based We on year overall throughout the you've the The new the sales that just that we have

because, other during few notably the the quarter That's most have The until of program know increased don't little part the contract. growth difficult at are we to tempo often the WASS Department, that programs, the the pace for this they came actually are that saw at the moving we government flown. operational for flying larger with State missions predict and a more of government again, the a are the we we

that operational distribution the fiscal about parts rate of the increase program sales quarter government. the saw this the that the we're good year in on feel hopeful will fourth continue throughout out to we tempo So And new growth side. we

Operator

the Our RBC. next Ken Herbert question comes of with from line

Kenneth Herbert

break of growth commercial distribution what particular, in if Can you was in provide can that within Supply Parts government quarter? the you the just versus out

John Holmes

back may specific great. that both to to We see we get We you were detail. have They that handy. on need if

Kenneth Herbert

side some it agreements? pushback incremental specifically distribution to Okay. We'll follow from the customers, you pricing commercial your of on relates the that. I on up any on as seen have But guess,

John Holmes

We have not.

the obviously We it depending have extent along. as price those there severity. OEM increases not. well the we impacted price reactions increases, certain we has And that buy of to Certainly, there's that you're on flow. are pass But the aware, not order to

Sean Gillen

Commercial distribution had XX% kind year-over-year of back real the growth. and actually a was nice growth on was growth. teens to closer government low and Just bounce

Kenneth Herbert

in keep we mean slower commercial sequentially there out Was results. I part in commercial the remember quarter you that it like fourth the I third of for called anything that growth, side growth the quarter. on anything mind? in maybe third or Okay. tougher as quarter than lower that was the particular looks comps should the

John Holmes

do largely the flows chains I as I But anything now. you that are depends point on I ebbs quite No. to wouldn't particular. we in particular. supply won't when to see the And OEM order mean still in and anything from receive volume know, material you dynamic partners. right in point

Kenneth Herbert

margins there mean, issues Great. -- about jumping that Solutions, I negatively was that onetime margins some event for State sounds like it -- anything the impacted one with quarter Okay. And was in maybe Department we should the Integrated that there the within there. that fiscal business into quarter that a is off in 'XX? of Does or point sort think how contract

Sean Gillen

lower-margin Yes. of significant associated there that. government relates with it items Solutions. within to Integrated wasn't as slightly onetime quarter anything of the onetime There kind were in but no mix the was the was programs, some in The margin sales mix towards of some

Kenneth Herbert

low now? single for that maybe about digits segment to think way margins right So the

Sean Gillen

programs mentioned that think then portfolio. about think through Code right accretive the ZIP from kind and Well, as that of I year, be this in expectations. [indiscernible] yes to moving piece, margin is our you that the to that in the will will accretive margins the we And place be near term, the fiscal

Operator

questions and the Ladies management showing I in closing over to remarks. call gentlemen, I'm now to no further turn the queue. would for back like

John Holmes

Again, of you. 'XX, forward with again FY and speaking Thank September. We're for attention. you, to you extremely about we look the proud we're in Great. time Well, and thank your excited results. everybody,

Operator

call. for participation. this Ladies Thank conference you today's and your concludes gentlemen,

now may disconnect. You

AAR (AIR) 18 Jul 242024 Q4 Earnings call transcript