📈 Price History

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📊 Sector Averages

About

AAR Corp. provides products and services to commercial aviation, government, and defense markets in North America, Europe, Africa, Asia, and internationally. It operates through four segments: Parts Supply; Repair, Engineering, and Software; Government Solutions; and Legacy Commercial Programs. The company sells and leases used serviceable material and aftermarket distribution of new, and original equipment manufacturers supplied replacement parts. It also provides airframe maintenance, repair, and overhaul (MRO) services, such as airframe inspection, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior and interior refurbishment and engineering services, and support for various commercial and military aircraft; component MRO services, including repair and overhaul services, engine and airframe accessories, and interior refurbishment; software solutions comprising cloud-based, mobile, and AI-enabled aviation aftermarket software; develops PMA parts for aftermarket applications; and designs proprietary designated engineering representative repairs. In addition, the company designs, manufactures, and repairs transportation pallets; offers fleet management and operations 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 engineering, design, and system integration services for specialized command and control systems. Further, it provides asset-heavy flight hour-based component pool and repair programs for commercial airlines and distribution of consumables and expendables inventory. Additionally, it offers containers and shelters for military and humanitarian tactical deployment activities; and shelters, such as stationary and vehicle-mounted applications. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

Key Ratios Snapshot

📈 Growth Pattern

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🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q4 2025

Confident Specific

Management delivered a confident tone anchored in record financials (14% organic growth, 19% adjusted EBITDA growth, 32% EPS growth) and provided specific guidance: Q1 sales growth 6-11% ex-landing gear, FY2026 organic growth approaching 9%, and adjusted operating margins improving from 9.6%.

Q1 2026

Confident Specific

Management uses phrases like 'very strong start', 'proud of the results', 'significant top-line growth', '17% organic adjusted sales growth', and provides concrete figures and milestones (e.g., 27% parts supply growth, Delta win, Aerostrat acquisition). They do not hedge or evade.

Q2 2026

Confident Specific

Management uses definitive language: 'outstanding quarter', 'strong results', 'exceptional momentum'. They provide precise figures (16% sales growth, 32% organic new parts distribution growth) and are direct about near-term margin dilution from HAECO integration, expecting improvement over 12-18 months.

Q3 2026 latest

Confident Specific

Management repeatedly uses phrases like 'outstanding quarter', 'strong execution', 'above expectations', and provides specific growth percentages (25% total sales, 36% organic new parts, 55% organic govt distribution) and margin improvements, projecting a clear, upbeat narrative without hedging.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is stronger after this call. AAR delivered broad-based organic growth (36% in new parts distribution, 55% in government distribution), HAECO Americas integration is ahead of schedule with the margin trough behind, and Trax momentum (Delta deployment scaling) plus a major government contract signal durable revenue streams. Key watch items: HAECO margin trajectory over the next two quarters, the ramp of Delta’s additional modules, and whether sustained high fuel costs eventually pressure airline MRO budgets. Overall, management’s confident specificity reinforces the narrative of a well-positioned aftermarket consolidator with both commercial and government tailwinds.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED AAR Corp. Q3 FY2026: Sales up 25%, adjusted EPS up 26% to $1.25.

Revenue & Profitability

Q3 FY2026 total sales were $845 million (up 25% YoY), including 14% organic adjusted sales growth. Adjusted EBITDA was $102.1 million (up 26%), adjusted operating income was $86.2 million (up 31%), and adjusted diluted EPS was $1.25 (up 26%). Cash from operations was $75 million.

Outlook

Management sees strong fundamental demand for air travel, with record bookings even after the Middle East conflict began. Customers are planning for a busy summer, and AAR does not anticipate meaningful impacts on maintenance schedules or parts demand from modest capacity adjustments. Government demand is benefitting from increased U.S. military operational readiness.

Growth Drivers

Key growth levers include parts supply (36% organic growth in new parts distribution, 55% organic growth in government distribution), ADI acquisition outperforming expectations, HAECO Americas integration ahead of schedule, and Trax software (record quarter, Delta ramp). Oklahoma City hangar expansion is complete, and Miami expansion is expected operational later this summer.

Balance Sheet & CapEx

Not discussed in this earnings call beyond mention of hangar capacity expansions in Oklahoma City (completed) and Miami (expected later summer).

Margins

Q3 adjusted EBITDA margin was 12.1% (up 10 bps YoY); excluding HAECO Americas, it would have been 12.8%. Adjusted operating margin improved 50 bps to 10.2%. HAECO margin was the low point; sequential improvement is expected. Q4 FY2026 guided operating margin is 10.2%-10.5%. Repair and engineering margins are expected to return to pre-acquisition levels by Q3 FY2027.

Key Risks

Risks include potential impact from the Middle East conflict on airline demand or supply chains, though management sees no material effect yet. Fuel cost increases could lead to modest capacity adjustments by customers. Integration risks exist for HAECO Americas and ART acquisitions. Forward-looking statements are subject to risks detailed in the company's 10-K.

Generated by AI · Q3 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q4 2026 Q4 2026 2026-07-21

Record Q4 and FY2026 results featured double-digit growth in sales, EBITDA, and EPS, driven by strong performance in parts, repair, and software. FY2027 guidance calls for continued double-digit sales growth and margin expansion, supported by robust demand and successful integration of acquisitions.

Q3 2026 Q3 2026 2026-03-24

2021 saw major progress with COVAXIN and gene therapy programs, increased R&D and G&A expenses, and a strengthened cash position. Regulatory milestones were achieved, and the company is well-funded into Q1 2023, with key clinical data expected in the second half of 2022.

Q2 2026 Q2 2026 2026-01-06

Second quarter sales grew 16% year-over-year, led by 29% growth in parts supply and strong performance across all segments. Three strategic acquisitions were completed or announced, supporting expansion in new parts distribution and heavy maintenance. Margin improvement is expected as integration progresses, with full-year sales growth projected near 17%.

Q1 2026 Q1 2026 2025-09-23

Strong Q1 results featured 17% organic sales growth and margin expansion, led by parts supply and new distribution wins. Full-year organic sales growth outlook was raised to nearly 10%, with continued investment in inventory, software, and MRO capacity to support future growth.

Q4 2025 Q4 2025 2025-07-16

Record fiscal 2025 results featured 20% revenue growth, margin expansion, and strong cash flow. New parts distribution and Trax software drove above-market growth, while portfolio optimization and cost synergies improved profitability.

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