AIR
AAR reports fourth quarter and fiscal year 2026 results
Article Summary
BUY- AAR CORP. (NYSE: AIR) reported strong Q4 and fiscal year 2026 results, with total sales up 26% and adjusted EBITDA up 27% year over year, driven by strong growth in parts, repair, and software, with Parts Supply delivering 39% organic growth and the Repair, Engineering, and Software segment reporting 35% growth.
- AAR expanded margins despite the expected short-term dilutive impact of the HAECO Americas acquisition, and maintained strong cash flow performance with adjusted cash flow of $94 million and net leverage of 2.03x at the end of the quarter, well within its 2.0-2.5x target range.
- Management expects further margin expansion as the company shifts sales mix to higher-margin offerings and integrates the acquisition, while restructuring the Legacy Commercial Programs business.
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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.