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AAR Corp.

AAR Corp.

NYSE•AIR
CEO: Mr. John McClain Holmes III
Sector: Industrials
Industry: Aerospace & Defense
Listing Date: 1980-03-17
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.
Contact Information
One AAR Place, 1100 North Wood Dale Road, Wood Dale, IL, 60191, United States
630-227-2000
www.aarcorp.com
Market Cap
$3.00B
P/E (TTM)
103.7
37
Dividend Yield
--
52W High
$89.69
52W Low
$46.51
52W Range
87%
3.7
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Weak • 3.7 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2015-2024

Financial Dashboard

Q1 2026 Data

Revenue

$739.60M+11.77%
4-Quarter Trend

EPS

$0.96+88.23%
4-Quarter Trend

FCF

-$56.10M+111.70%
4-Quarter Trend

2026 Q1 Earnings Highlights

Key Highlights

Sales and Net Income Surge Total sales reached $739.6M, up 11.8% from $661.7M last year. Net income doubled to $34.4M from $18.0M in the prior period.
Diluted EPS Substantially Higher Diluted EPS was $0.95 for the quarter, significantly increasing from $0.50 reported in the prior year period, reflecting strong operational leverage.
Government Profitability Jumps Gross profit margin for government sales rose sharply to 20.4% from 12.9% due to strong demand and volume growth in Parts Supply Distribution.
Firm Backlog Position Solid Firm backlog stands at approximately $490M as of August 31, 2025, with 75% expected recognized as revenue within the next twelve months.

Risk Factors

Operating Cash Flow Deterioration Net cash used in operating activities increased to ($44.9M) from ($18.6M) due to working capital changes, notably increased inventory investment in the current quarter.
Commercial Margin Pressure Commercial gross profit margin fell to 17.1% from 19.6% due to lower profitability observed specifically within the power-by-the-hour programs activities.
Russian Litigation Liability Remains Accrued interest liability for the Russian judgment stands at $2.0M classified as long-term Other liabilities as of August 31, 2025.
Unestimable Performance Guarantee Loss Potential loss exists from a customer suit regarding the divested Composites business, currently unestimable, though management believes it has numerous defenses.

Outlook

Facility Expansion Underway Repair & Engineering expanding Miami and Oklahoma City maintenance facilities, with expected completion dates set for early to mid-calendar 2026.
Restructuring Plan Initiated Executed Q1 FY2026 restructuring plan, eliminating 60 positions and recognizing $1.0M in severance charges to streamline operations and reduce costs.
Aerostrat Integration Progressing Aerostrat acquisition results are now reported within the Integrated Solutions segment; integration costs and expected synergies will materialize over time.
Favorable Market Trends Expected Expect strength in aviation products and services, believing long-term commercial aftermarket growth trends remain favorable for future strategy.

Peer Comparison

Revenue (TTM)

AAR Corp.AIR
$2.86B
+17.6%
VSE CorporationVSEC
$1.11B
+39.8%
Cadre Holdings, Inc.CDRE
$572.61M
+7.7%

Gross Margin (Latest Quarter)

AMMO, Inc.POWW
87.2%
+28.6 pp
Cadre Holdings, Inc.CDRE
40.9%
+1.5 pp
AAR Corp.AIR
18.1%
+0.4 pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
VSEC$3.70B330.21.1%2.9%
AIR$3.00B103.72.4%37.5%
LUNR$2.04B-4.648.2%7.9%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
+2.5%
Moderate Growth
4Q Net Income CAGR
N/M
Profitability Shift
Cash Flow Stability
50%
Cash Flow Needs Attention

Research & Insights

Reports
All Years
  • Form 10-Q - Q1 2026

    Period End: Aug 31, 2025|Filed: Sep 23, 2025|
    Revenue: $739.60M+11.8%
    |
    EPS: $0.96+88.2%
    Meet
  • Form 10-K - FY 2025

    Period End: May 31, 2025|Filed: Jul 22, 2025|
    Revenue: $2.78B+19.9%
    |
    EPS: $0.35-73.1%
    Miss
  • Form 10-Q - Q3 2025

    Period End: Feb 28, 2025|Filed: Mar 28, 2025|
    Revenue: $678.20M+19.5%
    |
    EPS: $-0.25-162.5%
    Miss
  • Form 10-Q - Q2 2025

    Period End: Nov 30, 2024|Filed: Jan 8, 2025|
    Revenue: $686.10M+25.8%
    |
    EPS: $-0.51-176.1%
    Miss
  • Form 10-Q - Q1 2025

    Period End: Aug 31, 2024|Filed: Sep 24, 2024|
    Revenue: $661.70M+20.4%
    |
    EPS: $0.51-3048.0%
    Miss
  • Form 10-K - FY 2024

    Period End: May 31, 2024|Filed: Jul 19, 2024|
    Revenue: $2.32B+16.5%
    |
    EPS: $1.30-49.2%
    Beat
  • Form 10-Q - Q3 2024

    Period End: Feb 29, 2024|Filed: Mar 21, 2024|
    Revenue: $567.30M+8.9%
    |
    EPS: $0.40-36.5%
    Miss
  • Form 10-Q - Q2 2024

    Period End: Nov 30, 2023|Filed: Dec 21, 2023|
    Revenue: $545.40M+16.1%
    |
    EPS: $0.67+3.1%
    Miss