AAR Corp. (AIR) AI Stock Analysis

AAR Corp. is an aerospace and defense company based in Wood Dale, Illinois. It operates through two main segments: Aviation Services and Expeditionary Services. The Aviation Services segment supplies aftermarket support, inventory management, distribution solutions, and maintenance, repair, and overhaul (MRO) services. It also inspects, modifies, paints, and refurbishes aircraft airframes and components, while providing parts sales and repair programs to commercial airlines, the U.S. Department of Defense, and foreign governments. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets, containers, and shelters, and provides logistics and system integration services for government and non-governmental entities.

AAR Corp. grew revenue from $1.82B in FY2022 to $3.31B in FY2026, delivering 19.0% top-line growth in FY2026 and a 5-year CAGR of 14.9%. Operating margin expanded from 5.9% in FY2022 to 8.2% in FY2026, while gross margin stood at 18.8%. Net income rose to $187.7M in FY2026, up from $12.5M in FY2025 and $46.3M in FY2024. Diluted EPS reached $5.04 in FY2026. For the trailing twelve months ended August 31, 2026, revenue totaled $3.49B with an operating margin of 8.1% and a net profit margin of 5.5%. In the latest quarter, revenue grew 24.1% year-over-year, while quarterly earnings grew 4.4%.

As of August 31, 2026, AAR Corp. held $104.5M in cash and short-term investments against $978.4M in total debt, resulting in net debt of $873.9M. The debt-to-equity ratio was 0.56, with shareholders' equity at $1.74B and total assets of $3.43B. The company maintained a current ratio of 2.83. During FY2026, operating cash flow was $98.7M, capital expenditures were $65.4M, and free cash flow was $33.3M. Over the past 5 years, the company's share count increased by 12.1%.

AAR Corp. trades at a trailing P/E of 20.3x, compared to the median of 24.8x for US-listed Industrials peers. Its forward P/E is 21.3x, above the peer median of 17.2x. Enterprise value stands at $5.72B, which corresponds to an EV/EBITDA of 14.7x versus the peer median of 13.9x, and an EV/revenue multiple of 1.7x. The price-to-sales ratio is 1.1x versus the peer median of 1.5x. AIR delivered a 1-year return of 19.3%, outperforming the S&P 500's 16.8%, and gained 192.1% over 5 years compared to 83.0% for the S&P 500.

Wall Street analysts hold 4 Strong Buy, 1 Buy, and 2 Hold ratings on AAR Corp. The mean price target is $154.50, representing an upside of 56.3% from the last close of $98.84. For the fiscal year ending May 31, 2027, consensus estimates project revenue of $3.69B and EPS of $5.80, representing 14.8% EPS growth. For the following fiscal year, 7 analysts project revenue of $3.94B and EPS of $6.71. AAR Corp. has exceeded EPS consensus estimates in each of the last 4 quarters.

This page is an AI-written research summary of AAR Corp. (AIR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AIR income statement, AIR balance sheet, AIR key metrics, AIR analyst forecast, AIR chart. See the AIR stock overview for the latest quote and news.