Zacks Investment Research·1 day ago
AAR (AIR) Upgraded to Buy: Here's WhyAAR (AIR) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
AAR Corp.(AIR)Earnings, Financials & Key Ratios
AIR•NYSE
$136.63
390.4× P/E·Price updated Jul 7, 2026
AboutAAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Aviation Services segment offers aftermarket support and services; inventory management and distribution services; and maintenance, repair, and overhaul, as well as engineering services. This segment also sells and leases new, overhauled, and repaired engine and airframe parts, and components; and provides inventory and repair programs, warranty claim management, and outsourcing programs for engine and airframe parts and components, as well as performance-based supply chain logistics programs in support of the U.S. department of defense and foreign governments. In addition, it offers airframe inspection, maintenance, repair and overhaul, painting, line maintenance, airframe modification, structural repair, avionic and installation, exterior and interior refurbishment, and engineering and support services; and repairs and overhauls components, landing gears, wheels, and brakes. The Expeditionary Services segment provides products and services supporting the movement of equipment and personnel by the U.S. and foreign governments, and non-governmental organizations. This segment also designs, manufactures, and repairs transportation pallets, and various containers and shelters; and provides engineering, design, and system integration services for command and control systems. The company serves domestic and foreign passenger airlines; domestic and foreign cargo airlines; regional and commuter airlines; business and general aviation operators; original equipment manufacturers; aircraft leasing companies; aftermarket aviation support companies; and domestic and foreign military customers. It primarily markets and sells products and services through its employees and foreign sales representatives. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.Show more
- Revenue$2.78B+19.9%
- EBITDA$240M+41.1%
- Net Income$13M-73.0%
- EPS (Diluted)0.35-72.9%
- Gross Margin18.98%-0.5%
- EBITDA Margin8.65%+17.7%
- Operating Margin6.66%+19.5%
- Net Margin0.45%-77.5%
- ROE1.04%-74.3%
AIR Price & Volume
AAR Corp. (AIR) stock price & volume — 10-year historical chart
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Aggressive Inorganic Growth Masks Structural Margin Volatility
Investment Thesis • Updated 2026Q3
VerdictNeutral
Growth:Accelerating
Profitability:Strained
Financial:Adequate
Cash Flow:Mixed
Primary Risk:Margin compression from labor
Key Thesis Takeaways
- AAR Corp.
- is currently navigating a period of rapid top-line expansion, evidenced by a 24.6% year-over-year revenue increase in 2026Q3, driven by an aggressive acquisition strategy that has pushed total assets to $3.3 billion.
- However, the company's reliance on labor-intensive MRO services continues to constrain profitability, with operating margins fluctuating between -0.3% and 10.5% over the last ten quarters.
- Investors should remain cautious as the significant buildup of $840.9 million in goodwill and a surge in total debt to $979.7 million necessitate successful integration of acquired units to justify the current 408.97 P/E valuation.
Verdict Logic
while top-line growth is robust at 24.6%, the extreme instability in free cash flow, which swung from a $74.7 million peak to a -$53.6 million trough, warrants a wait-and-see approach regarding operational consistency.
AIR Growth Metrics
AAR Corp. (AIR) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years5.72%
5 Years6.06%
3 Years15.17%
TTM16.85%
Profit CAGR
10 Years2.05%
5 Years-12.8%
3 Years-45.84%
TTM1479.03%
EPS CAGR
10 Years3.85%
5 Years-13.19%
3 Years-45.48%
TTM45400%
Return on Capital
10 Years7.11%
5 Years7.89%
3 Years8.26%
Last Year8.06%
AIR Recent Earnings
AAR Corp. (AIR) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 8/12 qtrs (67%)
Q2 2026Latest
Mar 24, 2026Metric
Actual
Est
EPS
$1.25+8.7%
$1.15
Rev
$845M+4.0%
$813M
Q1 2026
Jan 6, 2026Metric
Actual
Est
EPS
$1.18+15.7%
$1.02
Rev
$795M+4.1%
$764M
Q4 2025
Sep 23, 2025Metric
Actual
Est
EPS
$1.08+9.8%
$0.98
Rev
$740M+7.3%
$689M
Q3 2025
Jul 16, 2025Metric
Actual
Est
EPS
$1.16+16.0%
$1.00
Rev
$755M+8.4%
$696M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Mar 24, 2026 | $1.25vs $1.15+8.7% | $845Mvs $813M+4.0% |
| Q1 2026 | Jan 6, 2026 | $1.18vs $1.02+15.7% | $795Mvs $764M+4.1% |
| Q4 2025 | Sep 23, 2025 | $1.08vs $0.98+9.8% | $740Mvs $689M+7.3% |
| Q3 2025 | Jul 16, 2025 | $1.16vs $1.00+16.0% | $755Mvs $696M+8.4% |
Based on last 12 quarters of dataView full earnings history →
Latest AIR News
Recent stock market news and headlines for AAR Corp. (AIR)
Zacks Investment Research·1 day ago
Are Aerospace Stocks Lagging AAR (AIR) This Year?Here is how AAR (AIR) and RTX (RTX) have performed compared to their sector so far this year.
Zacks Investment Research·6 days ago
Here's Why AAR (AIR) is a Strong Growth StockWondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Benzinga·Jun 30, 2026
This AAR Analyst Is No Longer Bullish; Here Are Top 3 Downgrades For TuesdayTop Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Zacks Investment Research·Jun 25, 2026
AAR Corp. (AIR) Hits Fresh High: Is There Still Room to Run?AAR (AIR) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Peers Comparison
Key metrics vs top competitors for AAR Corp. (AIR)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $136.63 | $5.43B | 390.37 | 19.91% | 0.45% | 1.04% | — | |
| $358.02 | $49.88B | 73.07 | 16.26% | 16.08% | 16.23% | — | |
| $302.97 | $3.58B | 35.03 | -0.11% | 9.45% | 10.62% | — | |
| $16.44 | $3.57B | 24.18 | 6.71% | 13.98% | 10.32% | — | |
| $45.47 | $12.13B | 44.15 | 12.8% | 7.85% | 10.79% | — | |
| $1309.18 | $73.23B | 40.81 | 11.22% | 21.29% | — | — |
Compare AIR vs Peers
AAR Corp. (AIR) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
AIR SEC Filings & Documents
AAR Corp. (AIR) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 12, 2026·SEC
Material company update
May 6, 2026·SEC
Material company update
Apr 24, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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AIR Frequently Asked Questions
AAR Corp. (AIR) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is AAR Corp.'s revenue?
AAR Corp. (AIR) reported $3.13B in revenue for fiscal year 2025. This represents a 521% increase from $505.0M in 1996.
How fast is AAR Corp. growing?
AAR Corp. (AIR) grew revenue by 19.9% over the past year. This is strong growth.
Is AIR profitable?
Yes, AAR Corp. (AIR) is profitable, generating $171.0M in net income for fiscal year 2025 (0.4% net margin).
Dividend & Returns
What is AIR's return on equity?
AAR Corp. (AIR) has a return on equity (ROE) of 1.0%. This is below average, suggesting room for improvement.
What is AAR Corp.'s free cash flow?
AAR Corp. (AIR) generated $35.7M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.