AAR (NYSE:AIR) Issues Quarterly Earnings Results, Beats Estimates By $0.04 EPS

AAR (NYSE:AIR) released its quarterly earnings results on Tuesday. The aerospace company reported $1.25 EPS for the quarter, beating analysts’ consensus estimates of $1.21 by $0.04, FiscalAI reports. The firm had revenue of $845.10 million for the quarter, compared to analyst estimates of $812.58 million. AAR had a net margin of 5.46% and a return on equity of 13.09%. The company’s revenue for the quarter was up 24.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.99 earnings per share.

Here are the key takeaways from AAR’s conference call:

• AAR delivered strong quarterly results with 25% total sales growth, ~25–31% increases across adjusted operating income, EBITDA and EPS, and generated $75 million of operating cash, leaving net leverage at 2.17x.
• Parts distribution led performance with 36% organic growth in new parts distribution (62% total), while the ADI acquisition outpaced expectations and was accretive to margins; government distribution grew 55% organic.
• The HAECO Americas integration is progressing ahead of schedule but caused near-term margin dilution (management calls the quarter the low point); they are rightsizing revenue and costs and expect margins to recover by Q3 FY2027.
• Trax software showed strong momentum — record quarter, Delta deployment increased to ~2,000 users with ~6,000 expected in coming months, and AAR plans to launch a parts marketplace this calendar year to drive recurring revenue.
• Management raised its outlook, now expecting ~19% total sales growth for the year and ~12% organic growth, sees Q4 adjusted sales up 19%–21% with operating margin ~10.2%–10.5%, and will host an investor day on May 12 to outline strategy.

AAR Stock Performance

Shares of AAR stock opened at $118.71 on Thursday. The company has a debt-to-equity ratio of 0.61, a current ratio of 2.84 and a quick ratio of 1.31. The firm has a 50 day simple moving average of $110.18 and a 200 day simple moving average of $92.52. AAR has a fifty-two week low of $46.51 and a fifty-two week high of $122.97. The firm has a market cap of $4.70 billion, a P/E ratio of 26.32 and a beta of 1.19.

Analysts Set New Price Targets

AIR has been the subject of a number of research analyst reports. Royal Bank Of Canada lifted their target price on shares of AAR from $105.00 to $125.00 and gave the company an “outperform” rating in a research note on Wednesday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of AAR in a report on Monday, December 29th. Wall Street Zen upgraded AAR from a “hold” rating to a “buy” rating in a research report on Saturday, February 21st. Zacks Research lowered AAR from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Finally, The Goldman Sachs Group initiated coverage on AAR in a report on Monday, January 26th. They set a “neutral” rating and a $121.00 target price on the stock. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, AAR presently has an average rating of “Moderate Buy” and an average target price of $125.80.

Insider Transactions at AAR

In other news, CAO Jessica A. Garascia sold 4,787 shares of the business’s stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $95.25, for a total transaction of $455,961.75. Following the completion of the sale, the chief accounting officer owned 29,557 shares in the company, valued at $2,815,304.25. The trade was a 13.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Sarah Louise Flanagan sold 10,750 shares of the company’s stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $108.56, for a total value of $1,167,020.00. Following the transaction, the chief financial officer directly owned 32,848 shares in the company, valued at $3,565,978.88. This trade represents a 24.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 128,984 shares of company stock worth $12,517,090 in the last quarter. 3.60% of the stock is owned by corporate insiders.

Institutional Trading of AAR

Several institutional investors and hedge funds have recently added to or reduced their stakes in AIR. Lido Advisors LLC increased its stake in AAR by 2.8% in the 4th quarter. Lido Advisors LLC now owns 3,618 shares of the aerospace company’s stock valued at $318,000 after buying an additional 98 shares during the last quarter. Smartleaf Asset Management LLC boosted its stake in shares of AAR by 12.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,162 shares of the aerospace company’s stock worth $97,000 after buying an additional 126 shares during the last quarter. Captrust Financial Advisors grew its holdings in shares of AAR by 5.2% in the 4th quarter. Captrust Financial Advisors now owns 3,395 shares of the aerospace company’s stock valued at $281,000 after acquiring an additional 168 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in shares of AAR by 5.2% in the 4th quarter. Russell Investments Group Ltd. now owns 3,432 shares of the aerospace company’s stock valued at $284,000 after acquiring an additional 171 shares in the last quarter. Finally, Police & Firemen s Retirement System of New Jersey increased its position in shares of AAR by 2.2% in the fourth quarter. Police & Firemen s Retirement System of New Jersey now owns 10,106 shares of the aerospace company’s stock valued at $837,000 after acquiring an additional 218 shares during the last quarter. 90.74% of the stock is owned by institutional investors.

Trending Headlines about AAR

Here are the key news stories impacting AAR this week:

• Positive Sentiment: Q3 results beat expectations — AAR reported $1.25 EPS vs. $1.21 expected and revenue of $845.1M (up ~24.6% YoY), driven by strong parts distribution and broad segment gains. This earnings beat and healthy top-line growth are the main near-term drivers of the rally. AAR Q3 Earnings Surpass Estimates, Sales Increase Year Over Year
• Positive Sentiment: $450M Air Force pallet contract — AAR was awarded $450 million in pallet contracts for the U.S. Air Force, adding a sizable, government-backed revenue stream and improving visibility into future defense-related revenue. AAR awarded $450 million in pallet contracts for U.S. Air Force
• Positive Sentiment: Analyst upgrades and higher price targets — Royal Bank of Canada bumped its target to $125 (outperform) and KeyCorp raised its target to $120 (overweight), reinforcing buy-side momentum and supporting higher valuations. Benzinga coverage of price target changes
• Positive Sentiment: Consensus broker view is constructive — Brokerages maintain a consensus “Moderate Buy” on AIR, which helps sustain positive investor sentiment after the quarter. AAR Corp. (NYSE:AIR) Given Consensus Recommendation of “Moderate Buy” by Brokerages
• Neutral Sentiment: Earnings call and materials available — Management’s Q3 call, transcript and slide deck provide detail on margin drivers, parts demand, and integration plans; useful for modeling but not a surprise catalyst by itself. AAR (AIR) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Risk disclosure unchanged for FY2025 — AAR left most risk factors unchanged and added a Regulation-category item; the lack of expanded disclosure on emerging threats and oversight prompted investor questions about governance and downside risks. AAR Corp Keeps Risk Disclosures Unchanged for FY2025

AAR Company Profile

AAR Corp. (NYSE: AIR) is a global provider of aviation products and services to commercial, government and defense customers. The company offers a comprehensive portfolio of maintenance, repair and overhaul (MRO) solutions, component repair and overhaul, and engineering services designed to support a wide variety of fixed-wing and rotary aircraft. Leveraging FAA and EASA certifications, AAR delivers turnkey maintenance programs and ad hoc repair services that enhance aircraft availability and reliability.

In its Aviation Supply Chain Services segment, AAR sources, stores and distributes parts for both commercial airlines and military operators.