AAR (NYSE:AIR) Releases Earnings Results, Beats Estimates By $0.15 EPS

AAR (NYSE:AIR) released its quarterly earnings results on Tuesday. The aerospace company reported $1.53 EPS for the quarter, topping the consensus estimate of $1.38 by $0.15, Zacks reports. AAR had a return on equity of 13.14% and a net margin of 5.67%.The business had revenue of $928.00 million during the quarter, compared to analysts’ expectations of $893.03 million. During the same quarter in the prior year, the business earned $1.16 earnings per share. The company’s quarterly revenue was up 23.0% compared to the same quarter last year.

Here are the key takeaways from AAR’s conference call:

• AAR reported a record quarter with sales up 26% to $928 million, adjusted EBITDA up 27% to $116 million, and adjusted EPS up 32% to $1.53, reflecting strong execution across its parts, repair, and software platform.
• Management said the business continues to see strong end-market demand, with commercial distribution and repair activity remaining robust and software products like Trax, AeroStrat, and Airvoyant gaining traction.
• The company is seeing meaningful progress in its strategic initiatives, including a new Woodward distribution agreement, expanding airframe MRO capacity, and a large $305 million Navy/Marine Corps contract that supports government business.
• HAECO Americas integration is progressing ahead of schedule but remains a near-term margin drag; management expects margins at the acquired facilities to reach AAR’s normal levels in the second half of fiscal 2027.
• Free cash flow and balance sheet trends improved, with net leverage falling to 2.03x and management reiterating confidence in continued deleveraging and M&A, while guiding fiscal 2027 for low-double-digit to low-teens sales growth excluding Legacy Commercial Programs.

AAR Price Performance

Shares of AIR stock opened at $126.76 on Thursday. The firm has a fifty day simple moving average of $125.82 and a 200-day simple moving average of $115.64. The company has a market capitalization of $5.04 billion, a PE ratio of 26.25 and a beta of 1.09. AAR has a twelve month low of $71.43 and a twelve month high of $146.75. The company has a current ratio of 2.70, a quick ratio of 1.23 and a debt-to-equity ratio of 0.54.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Wall Street Zen cut AAR from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 14th. Royal Bank Of Canada boosted their price objective on shares of AAR from $105.00 to $125.00 and gave the stock an “outperform” rating in a research report on Wednesday, March 25th. Jefferies Financial Group raised their target price on shares of AAR from $150.00 to $155.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Truist Financial upgraded shares of AAR to a “strong-buy” rating in a research report on Friday, May 1st. Finally, Zacks Research raised shares of AAR from a “hold” rating to a “strong-buy” rating in a report on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, AAR presently has an average rating of “Buy” and a consensus price target of $132.20.

Hedge Funds Weigh In On AAR

Hedge funds have recently bought and sold shares of the company. Corient Private Wealth LLC bought a new position in AAR during the 4th quarter worth $244,000. Invesco Ltd. lifted its holdings in shares of AAR by 7.7% in the fourth quarter. Invesco Ltd. now owns 1,122,792 shares of the aerospace company’s stock valued at $92,956,000 after buying an additional 80,265 shares during the period. Skyview Financial Group LLC acquired a new position in AAR during the fourth quarter worth about $2,845,000. State of Tennessee Department of Treasury lifted its holdings in AAR by 23.0% in the 4th quarter. State of Tennessee Department of Treasury now owns 15,902 shares of the aerospace company’s stock valued at $1,317,000 after acquiring an additional 2,972 shares during the last quarter. Finally, Fuller & Thaler Asset Management Inc. boosted its position in shares of AAR by 22.3% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 672,877 shares of the aerospace company’s stock valued at $55,707,000 after purchasing an additional 122,672 shares in the last quarter. 90.74% of the stock is currently owned by institutional investors and hedge funds.

AAR Company Profile

AAR Corp. (NYSE: AIR) is a global provider of aviation products and services to commercial, government and defense customers. The company offers a comprehensive portfolio of maintenance, repair and overhaul (MRO) solutions, component repair and overhaul, and engineering services designed to support a wide variety of fixed-wing and rotary aircraft. Leveraging FAA and EASA certifications, AAR delivers turnkey maintenance programs and ad hoc repair services that enhance aircraft availability and reliability.

In its Aviation Supply Chain Services segment, AAR sources, stores and distributes parts for both commercial airlines and military operators.