AIR
AAR Corp (NYSE: AIR) posted record Q4 2026 sales and EBITDA growth driven by record parts supply, repair,...
Article Summary
HOLD- AAR Corp (NYSE: AIR) posted record Q4 2026 sales and EBITDA growth driven by record parts supply, repair, engineering, and software growth and strong integration of four acquisitions.
- AAR expanded into commercial distribution with Woodward and launched Airvoyant, an AI-driven procurement solution, which is entering beta testing with launch partners.
- Margins improved slightly due to integration of HAECO Americas, though government solutions margins declined due to reduced WASS program activity and constrained USM demand.
- Net leverage declined from 2.17x to 2.03x, and cash flow improved from $58 million to $94 million, reflecting improved operational efficiency.
- However, the company faces challenges in the USM market due to constrained asset availability and lower margins, and the Legacy Commercial Programs segment is expected to wind down over the next three to four years, potentially impacting future growth.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 16.9% | 25% | 60.0 ptsModerate (16.9%) - Decent growth |
| EPS Growth Next 5Y ? | 13.2% | 25% | 35.0 ptsBelow Screener (13.2%) - Modest outlook |
| Target Price Upside ? | 2.0% | 20% | 20.0 ptsMinimal Upside (2.0%) - Target: $144.25 vs Current: $141.40 |
| Gross Margin % ? | 19.0% | 15% | 20.0 ptsThin (19.0%) - Low-margin business |
| Drawdown from 52-Wk High ? | -3.7% | 15% | 20.0 ptsBarely a Dip (-3.7%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About AIR
- 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, Integrated Solutions, and Expeditionary Services.
- The company leases and sells aircraft components and replacement parts; and designs, manufactures, and repairs transportation pallets.
- The company also provides airframe maintenance services, such as airframe inspection, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior, and interior refurbishment services; component repair services, including maintenance, repair, and overhaul services, engine and airframe accessories, and interior refurbishment; and engineering services, such as integration, certification and procurement.
- In addition, it develops aircraft components and parts; designs proprietary designated engineering representative repairs; and provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating workflows.
- Further, the company 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, as well as engineering, design, and system integration services for specialized command and control systems; and flight hour component inventory and repair services.
- 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.