AAR Corp.
- Open
- 143.04
- Day high
- 146.75
- Day low
- 142.00
- Prev close
- 142.93
- Volume
- 162K
- Mkt cap
- $5.7B
- P/E (TTM)
- 31.7
- EPS (TTM)
- $4.55
- P/B
- 3.5
- P/S
- 1.8
- Yield
- —
- Per share
- —
AAR Corp. (AIR) is a Industrials company listed on NYSE. The stock is up 106% over the past year.
AAR Corp. (AIR) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AIR earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Mar 24, 2026 | $1.21 | $1.25 | +3.3% | $845M | +4.0% |
| Sep 23, 2025 | $0.98 | $1.08 | +9.8% | $740M | +7.3% |
| Mar 27, 2025 | $0.96 | $0.99 | +3.1% | $678M | -2.5% |
| Sep 23, 2024 | $0.82 | $0.85 | +3.7% | $662M | +2.5% |
| Mar 21, 2024 | $0.84 | $0.85 | +1.7% | $567M | -0.4% |
| Dec 21, 2023 | $0.80 | $0.81 | +1.3% | $545M | -2.1% |
| Jul 18, 2023 | $0.78 | $0.83 | +6.4% | $553M | +5.2% |
| Mar 21, 2023 | $0.70 | $0.75 | +7.1% | $521M | +6.9% |
| Dec 20, 2022 | $0.68 | $0.69 | +1.5% | $470M | +1.7% |
| Sep 22, 2022 | $0.57 | $0.61 | +7.0% | $446M | -1.9% |
| Mar 22, 2022 | $0.58 | $0.63 | +8.6% | $452M | +1.9% |
| Dec 21, 2021 | $0.54 | $0.53 | -1.9% | $437M | +0.9% |
AIR insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 3, 2026 | DIETRICH JOHN Wdirector | Grant | 1,364 | — |
| Jun 3, 2026 | McNabb Duncan J.director | Grant | 1,364 | — |
| Jun 3, 2026 | Lord Ellen M.director | Grant | 1,364 | — |
| Jun 2, 2026 | PACE PETERdirector | Grant | 1,364 | — |
| Jun 2, 2026 | VOGEL JENNIFER Ldirector | Grant | 1,364 | — |
| Jun 2, 2026 | Widhani Hemadirector | Grant | 1,364 | — |
| Jun 2, 2026 | Nolen Billydirector | Grant | 1,364 | — |
| Jun 2, 2026 | Edwards Jeffrey Ndirector | Grant | 1,364 | — |
| Jun 2, 2026 | WALFISH MARC JAYdirector | Grant | 1,364 | — |
| Jun 2, 2026 | LEDUC ROBERT Fdirector | Grant | 1,364 | — |
| Jun 2, 2026 | Boyce Michael Rossdirector | Grant | 1,364 | — |
| Jun 1, 2026 | LEDUC ROBERT Fdirector | Grant | 127 | $112.62 |
| Jun 1, 2026 | WALFISH MARC JAYdirector | Grant | 322 | $112.62 |
| Mar 30, 2026 | Holmes John McClain IIIdirector, officer: Chairman, President & CEO | Option | 23,950 | $37.74 |
| Mar 30, 2026 | Holmes John McClain IIIdirector, officer: Chairman, President & CEO | Option | 60,000 | $37.66 |
Source: AIR SEC Form 4 filings, latest Jun 3, 2026. For informational purposes only — not investment advice.
See the full AIR insider & 13F page →AAR Corp. company profile
Overview
AAR Corp. (NYSE:AIR) is a leading provider of aviation aftermarket services founded in 1951 and headquartered in Wood Dale, Illinois. The company has evolved from its origins as a parts distributor into a comprehensive aviation services provider serving both commercial airlines and government defense markets worldwide. AAR went public in 1980 and has built its business around three core segments: maintaining aircraft through repair and overhaul services, supplying replacement parts through distribution and used serviceable materials, and providing integrated logistics solutions primarily to government customers.
Business
AAR operates in the aviation aftermarket industry, which encompasses all services and products needed to keep aircraft flying after they leave the manufacturer. The aviation aftermarket is a critical component of the aerospace ecosystem, as airlines and military operators require ongoing maintenance, repairs, and replacement parts throughout an aircraft's 20-30 year operational life. The company operates through three primary business segments that collectively generated $2.3 billion in revenue in fiscal 2024: Parts Supply (approximately 40% of revenue): This segment distributes new aircraft parts from original equipment manufacturers and sells used serviceable material (USM) - parts removed from retired aircraft that are refurbished and certified for reuse. The distribution business involves partnerships with manufacturers like Sumitomo and Triumph to sell new parts, while the USM business requires AAR to acquire whole aircraft or parts inventories, refurbish components to airworthiness standards, and sell them to airlines at significant discounts compared to new parts. Repair & Engineering (approximately 35% of revenue): This segment provides maintenance, repair, and overhaul (MRO) services for aircraft engines, airframes, and components. AAR operates hangars where it performs everything from routine inspections to major structural repairs, engine overhauls, and aircraft modifications. The company also provides engineering services and holds repair certifications that allow it to return components to service after maintenance. Integrated Solutions (approximately 25% of revenue): This segment primarily serves government customers by providing logistics support, manufacturing specialized equipment like transportation pallets and shelters, and offering command and control systems integration. Much of this work supports U.S. military operations and diplomatic missions worldwide.
Revenue model
AAR generates revenue through multiple complementary business models across its three segments. The Parts Supply segment operates on product sales margins, purchasing parts from manufacturers or acquiring used aircraft/components, then selling them to airlines and maintenance providers at marked-up prices. This business benefits from the significant cost advantage of USM parts compared to new parts - airlines can save 40-60% while still receiving airworthy components. The Repair & Engineering segment generates revenue through service fees charged for maintenance work, typically billing customers based on labor hours and materials used. This creates a recurring revenue stream as aircraft require regular maintenance throughout their operational lives. The segment also benefits from performance-based logistics contracts where AAR guarantees parts availability and aircraft readiness for fixed fees. The Integrated Solutions segment primarily operates through government contracts, earning revenue from manufacturing specialized equipment and providing logistics services. Much of this revenue comes from multi-year defense contracts that provide stable, predictable cash flows. Several factors influence AAR's profitability margins. Positive margin drivers include the growing global aircraft fleet requiring more aftermarket services, airline preferences for outsourcing non-core maintenance activities, and the increasing availability of older aircraft for USM harvesting as the fleet ages. The company's scale advantages in parts sourcing and repair capabilities also support margin expansion. Margin pressures come from competition with original equipment manufacturers who are expanding their own aftermarket services, labor cost inflation in skilled aviation maintenance roles, and cyclical downturns in air travel that reduce airline maintenance spending. Additionally, newer aircraft with improved reliability require less frequent maintenance, though this is offset by fleet growth and the complexity of modern avionics systems.
Competitive moat
AAR possesses several competitive advantages that create meaningful barriers to entry, though the strength of these moats varies across business segments. The company's most significant moat lies in its regulatory certifications and technical expertise. Aviation maintenance requires extensive Federal Aviation Administration (FAA) and international regulatory approvals that take years to obtain and maintain. AAR holds numerous Designated Engineering Representative (DER) authorizations and repair station certificates that allow it to approve and certify maintenance work - capabilities that competitors cannot easily replicate. The company's scale advantages in parts sourcing create another defensive moat. AAR's relationships with airlines, leasing companies, and parts suppliers provide preferential access to USM inventory and new parts distribution agreements. The company's inventory management systems and global logistics network represent significant invested capital that smaller competitors struggle to match. However, AAR faces meaningful competitive threats that limit the durability of its moat. Original equipment manufacturers like Boeing, Airbus, and engine manufacturers are increasingly competing in the aftermarket through their own service divisions, leveraging their technical knowledge and parts access. These OEMs can offer integrated solutions and potentially undercut independent providers on pricing. The rise of digital technologies and predictive maintenance also poses disruption risks. Airlines are investing in data analytics to optimize maintenance schedules and reduce unplanned repairs - potentially reducing overall aftermarket demand. Additionally, newer aircraft designs with improved reliability and longer maintenance intervals could compress the total addressable market over time. The company's government business provides some stability through long-term contracts, but this segment faces budget pressures and competition from larger defense contractors. Overall, AAR maintains a moderate competitive moat supported by regulatory barriers and scale advantages, but faces ongoing pressure from well-capitalized OEM competitors and technological disruption.
Risks & safety
AAR's margin of safety appears moderate with mixed financial health indicators and elevated valuation metrics. Liquidity and Solvency: - Current ratio of 2.82x indicates strong short-term liquidity - Cash position of $84.4 million provides limited cushion relative to operations - Free cash flow negative at -$27.2 million in Q3 2025, showing cash consumption - Debt-to-equity ratio of 0.92x represents moderate leverage - Net debt leverage around 3.06x EBITDA is manageable but elevated Valuation Metrics: - EV/EBITDA of 41.1x appears extremely elevated due to low trailing EBITDA - Price-to-book ratio of 1.95x suggests modest premium to book value - Graham net-net value deeply negative, indicating no asset-based margin of safety Other Considerations: - Cyclical industry exposure creates earnings volatility risk - Recent FCPA settlement of $55.6 million demonstrates regulatory/compliance risks - Integration challenges from recent acquisitions could pressure near-term performance
Recent development
Over the past several years, AAR has executed a strategic transformation focused on expanding its aftermarket services capabilities and improving profitability margins. The most significant development was the 2023 acquisition of Triumph Product Support for approximately $300 million, representing AAR's largest-ever acquisition. This deal significantly expanded the company's repair and engineering capabilities while adding new customer relationships and parts distribution agreements. The company has been investing heavily in capacity expansion, particularly in its Miami airframe maintenance facility in partnership with United Airlines, and expanding hangar capacity in Oklahoma City. These investments are expected to come online in the second half of fiscal 2025 and support future growth in the repair and engineering segment. AAR has also been developing its Trax software platform, which provides inventory management and maintenance planning solutions to airline customers. While still a small part of the business, management sees significant potential for Trax to serve as a platform for expanding parts sales and deepening customer relationships. The company resolved a long-standing Foreign Corrupt Practices Act (FCPA) investigation with a $55.6 million settlement in fiscal 2025, removing a significant regulatory overhang. Additionally, AAR has been streamlining its portfolio by divesting non-core assets, including the planned sale of its landing gear overhaul business for $51 million. Strategically, AAR has been focusing on expanding its government business through new contract wins, including a significant Navy P-8 fleet support contract that represents an entirely new revenue stream. The company has also been investing in expanding its Designated Engineering Representative (DER) capabilities to capture more high-margin repair and certification work.
AIR company profile · for informational purposes only — not investment advice.
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