AAR CORP Earnings Per Share Disclosure
9. Earnings Per Share
The computation of basic earnings per share is based on the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share is based on the weighted average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options as shown below:
For the Year Ended | |||||||||
May 31, | |||||||||
| 2025 |
| 2024 |
| 2023 | ||||
Weighted average common shares outstanding – basic |
| 35.6 |
| 35.1 |
| 34.7 | |||
Additional shares from assumed exercise of stock options | 0.2 | 0.3 | 0.4 | ||||||
Weighted average common shares outstanding – diluted | 35.8 | 35.4 | 35.1 | ||||||
At May 31, 2025 and 2023, respectively, outstanding options to purchase 151,000 and 197,300 shares of common stock were not included in the computation of diluted earnings per share, because the exercise price of these options was greater than the average market price of the common shares for the year then ended. At May 31, 2024, no stock options were determined to be anti-dilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 22, 2025 | Showing above |
| 2024 | Jul 19, 2024 | |
| 2023 | Jul 18, 2023 | |
| 2022 | Jul 21, 2022 | |
| 2021 | Jul 21, 2021 | |
| 2020 | Jul 21, 2020 | |
| 2019 | Jul 18, 2019 | |
| 2018 | Jul 11, 2018 | |
| 2017 | Jul 12, 2017 | |
| 2016 | Jul 13, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.