AAR Corp
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Why this colour
Whoever buys today at an all-time high is betting that the normalized earning power of the aftermarket business justifies the 31 times P/E once the FCPA charge and the one-off gains have left the numbers — and carries $888 million of acquisition debt for it. Whoever waits may miss the next leg up but can check a quarterly report (10-Q) or two without special items for how high the true profit really is: clean operating income with no bargain purchase or building gains, plus a stable aftermarket margin, would be the evidence. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
AAR is the spare-parts warehouse and repair shop of aviation — a growing, independent aftermarket consolidator in a structurally attractive end market. The operating business is healthy (revenue +19.9% in FY 2025), but reported profit is a roller coaster: a $55.6 million corruption settlement crushed FY 2025 (a 67.9% tax rate), and roughly $45 million of one-off gains inflated the Q3 FY 2026 record quarter. On top come $888 million of acquisition debt, no dividend, and insiders selling at an all-time high. Whoever invests here buys a quality consolidator — but has to back out the true, recurring profit from the noise. Not investment advice.
End market & business model
The aviation aftermarket is a structural growth market (aging fleets, high utilization, parts scarcity), and AAR is one of the few large independent players, with four segments and two customer worlds (71% commercial, 29% government/defense). Revenue FY 2025 +19.9% to $2,780.5 million, 9M FY 2026 +17.5% (10-K FY 2025, 10-Q as of 02/28/2026).
Earnings quality & special items
Reported profit is distorted three years running: a $55.6 million FCPA settlement (pushed FY 2025 to $12.5 million net income, a 67.9% tax rate), then a $35.7 million bargain purchase plus a $9.8 million building gain in Q3 FY 2026 — roughly $45 of the $93.1 million pre-tax income are one-off. Whoever does not adjust is valuing phantom profits.
Balance sheet & financing
$888.3 million of long-term debt (6.75% note due 2029, increased to $700 million) against $1,643.4 million of equity (02/28/2026); interest expense FY 2025 +$32.2 million — the acquisition-driven growth is built on debt, but leverage is contained with a 3.75x EBITDA covenant. No dividend.
Compliance & governance
FCPA settlement with the DoJ (an 18-month Non-Prosecution Agreement to mid-2026) and the SEC (both 12/19/2024); a meaningful share of business in "high-risk jurisdictions"; a separate Nepal proceeding against more than 35 parties including an AAR subsidiary. Plus 17 insider sales against no purchase at an all-time high (data as of July 17, 2026).
Valuation & technicals
A stage-2 uptrend, above the 50-/200-day averages, "Joshua" and "quality growth" hits, plus 94% in twelve months meet a P/E around 31, a P/S around 1.8 and a P/B around 3.5 (data as of July 17, 2026) — a quality stock at an all-time high whose profit denominator is jumpy from special items.
Worth Noting
AIR reached our research list via the "Joshua" growth scanner (rank 11 of the top 20, as of July 17, 2026) and a confluence of stage-2 trend, "quality growth," above the 50-/200-day averages and institutional accumulation in our in-house stock scanner.
Mind the calendar: AAR’s fiscal year ends May 31 — every quarterly reference carries that fiscal-year offset (FY 2025 = June 2024 through May 2025).
Reported net income is distorted by special items (FCPA settlement Q2 FY 2025; bargain purchase and building gains Q3 FY 2026) — trailing metrics such as the P/E should be read with caution accordingly. Price and valuation figures are dated to July 17, 2026; analyses are evergreen, daily prices are not a buy argument.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at AIR since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 74.80 $ to 153.70 $ · Last price: 112.10 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Aerospace & Defense
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| AAR Corp AIR | 4.5 | 26.0 | 14.3 | 18.8 | 7.6 | 19.9 | 50.0 |
| Space Exploration Technologies Corp. SPCX | 1,172.1 | – | 511.6 | 51.9 | – | – | – |
| GE Aerospace GE | 326.7 | 40.1 | 27.6 | 31.1 | 20.2 | 18.5 | 8.8 |
| RTX Corporation RTX | 254.2 | 36.5 | 18.5 | 20.3 | 13.2 | 9.7 | 24.1 |
| The Boeing Company BA | 155.3 | 78.7 | 25.5 | 4.7 | 1.7 | 34.5 | -8.2 |
| Lockheed Martin Corporation LMT | 124.1 | 26.0 | 13.6 | 11.8 | 11.0 | 5.7 | 16.7 |
| General Dynamics Corporation GD | 96.7 | 22.8 | 15.1 | 15.4 | 10.5 | 10.1 | 11.4 |
| Howmet Aerospace Inc HWM | 90.3 | 52.0 | 34.8 | 36.0 | 28.2 | 11.1 | 22.0 |
| Northrop Grumman Corporation NOC | 73.6 | 16.6 | 11.8 | 20.1 | 11.7 | 2.2 | -7.7 |
| Median of companies shown | 124.1 | 31.3 | 18.5 | 20.1 | 11.3 | 10.6 | 14.0 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2017 | 1,768 | 80 | 57 | 1.65 | 22 | 914 | 1,504 |
| 2018 | 1,748 | 86 | 16 | 0.45 | 64 | 936 | 1,525 |
| 2019 | 2,052 | 98 | 8 | 0.21 | 67 | 906 | 1,517 |
| 2020 | 2,072 | 41 | 25 | 0.71 | -36 | 903 | 2,079 |
| 2021 | 1,652 | 85 | 36 | 1.01 | 105 | 974 | 1,540 |
| 2022 | 1,820 | 107 | 79 | 2.19 | 75 | 1,035 | 1,574 |
| 2023 | 1,991 | 134 | 90 | 2.57 | 23 | 1,099 | 1,833 |
| 2024 | 2,319 | 129 | 46 | 1.31 | 44 | 1,190 | 2,770 |
| 2025 | 2,781 | 185 | 13 | 0.35 | 36 | 1,212 | 2,845 |
| 2026 | 3,308 | 271 | 188 | 4.89 | 99 | 1,704 | 3,356 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.87 | -228.90 | 686 | 25.80 | -4.50 | 22 | 30 |
| 2025: Q1 | -0.25 | -163.20 | 678 | 19.50 | -1.30 | -19 | -27 |
| 2025: Q2 | 0.96 | 271.50 | 755 | 14.90 | 4.50 | 51 | 41 |
| 2025: Q3 | 0.96 | 89.50 | 740 | 11.80 | 4.70 | -45 | -54 |
| 2025: Q4 | 0.90 | – | 795 | 15.90 | 4.40 | 14 | 6 |
| 2026: Q1 | 1.71 | – | 845 | 24.60 | 8.00 | 75 | 42 |
| 2026: Q2 | 1.27 | 32.30 | 928 | 23.00 | 5.50 | 55 | 43 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 16 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Breakout & Setup
Momentum & Trend
- 21-EMA Trend
- Above the 50- & 200-SMA
- Gary Antonacci: Dual Momentum (Stock Adaptation)
- Mark Minervini: Trend Criteria — 1 Month
- Mike Webster: Power Trend Leader
- Near 52-Week High
- Stage 2 Leader
- Stan Weinstein: Stage 2
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 05/31/2027 | 5.72 | 5.52 – 5.95 | 3,656 | 13.3% | 8 |
| 05/31/2028 | 6.55 | 6.21 – 6.94 | 3,910 | 14.4% | 7 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 27.9% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $52.1M |
|---|---|
| Market cap | $4.53B |
| Free cash flow in year ten | $610.6M |
| Terminal value as a share of market value | 71.1% |
For comparison: over the past five years free cash flow shrank by 18.7% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Eingestuft am 17.07.2026 gegen den Geschäftsbericht (10-K) für das Geschäftsjahr 2025 (eingereicht 22.07.2025), den 10-K für das GJ 2024 sowie die vier jüngsten Quartalsberichte (10-Q). AAR Corp ist ein Luftfahrt-Aftermarket-/MRO-Dienstleister und verkauft keine KI als eigene Umsatzquelle. Die 2023 übernommene Software-Tochter Trax setzt Künstliche Intelligenz jedoch operativ ein, um Wartungsabläufe (MRO-Workflows) in ihren eMRO-/eMobility-Produkten zu automatisieren; zusätzlich beschreibt AAR im 10-K 2025, man „explore“ die Einführung von KI-Strategien für die eigenen Produkte und Dienstleistungen. Das ist dokumentierter operativer/produktbezogener KI-Einsatz zur Effizienzsteigerung — aber (noch) keine eigenständige KI-Umsatzquelle und kein konkretes, gegen das eigene Geschäftsmodell gerichtetes KI-Risiko (die weiteren KI-Nennungen im 10-K sind generische Cybersecurity-Floskeln). Nach der Vorrang-Regel verkauft > bedroht > nutzt > neutral bleibt es damit bei „nutzt“.
View the full file — quotes, sources, reviewed filings
„Through its eMRO and eMobility products, Trax provides comprehensive software solutions for aircraft maintenance ... a full suite of “paperless” mobility apps that are in process of automating MRO workflows with artificial intelligence."
Über ihre Produkte eMRO und eMobility bietet Trax umfassende Softwarelösungen für die Flugzeugwartung … eine vollständige Suite „papierloser“ Mobility-Apps, die dabei sind, Wartungsabläufe (MRO-Workflows) mit Künstlicher Intelligenz zu automatisieren.
10-K · 2025-07-22 · View SEC filing
„In addition, we are exploring implementing artificial intelligence strategies for our products and services, which may be costly or ineffective, introduce errors, cause loss of intellectual property, and raise complex regulatory compliance ... concerns."
Darüber hinaus prüfen wir die Einführung von Strategien für Künstliche Intelligenz für unsere Produkte und Dienstleistungen, was kostspielig oder wirkungslos sein, Fehler verursachen, zum Verlust geistigen Eigentums führen und komplexe regulatorische Compliance-Fragen aufwerfen kann.
10-K · 2025-07-22 · View SEC filing
Filings Reviewed: 10-Q 2026-03-25 · 10-Q 2026-01-07 · 10-Q 2025-09-23 · 10-K 2025-07-22 · 10-Q 2025-03-28 · 10-K 2024-07-19
Rated on July 17, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 18.5%
- More than 10% revenue growth is expected for the coming year 10.8%
- Share count grows by less than 3% a year 3.0%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 20.0%
- Gross margin at 40% or higher and without meaningful erosion 18.8%
- Goodwill from acquisitions does not grow faster than revenue 17.3%
- Net debt below twice EBITDA 2.6 x EBITDA
- Operating cash flow covers the profits of the last three years -68 m
- Return on capital at 15% or higher, or up versus two years ago 9.9%
- Insiders hold at least 10% or are net buyers 2.1%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
8/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 7.2%
- Exp. sales growth 3Y > 5% 8.7%
- EBIT growth 10Y > 5% 14.6%
- Exp. EBIT growth 3Y > 5% 15.7%
- Net debt < 4x EBIT 3.4x
- EBIT positive, 10Y straight 10
- Max. EBIT decline < 50% 58.0%
- Return on equity > 15% 22.3%
- ROCE > 15% 9.9%
- Expected return > 10% 16.6%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Jul 31, 2026 | Pachapa Eric | VP-CAO & Controller | Other | 614 | 140.04 | 85,985 |
| Jul 31, 2026 | Pachapa Eric | VP-CAO & Controller | Other | 3,365 | 140.04 | 471,235 |
| Jul 31, 2026 | Jessup Christopher A. | Senior Vice President-CCO | Other | 1,294 | 140.04 | 181,212 |
| Jul 31, 2026 | Jessup Christopher A. | Senior Vice President-CCO | Other | 7,098 | 140.04 | 994,004 |
| Jul 31, 2026 | Garascia Jessica A. | Senior VP, GC, CAO & Secretary | Other | 1,028 | 140.04 | 143,961 |
| Jul 31, 2026 | Garascia Jessica A. | Senior VP, GC, CAO & Secretary | Other | 5,635 | 140.04 | 789,125 |
| Jul 31, 2026 | Holmes John McClain III | Chairman, President & CEO | Other | 6,220 | 140.04 | 871,049 |
| Jul 31, 2026 | Holmes John McClain III | Chairman, President & CEO | Other | 34,143 | 140.04 | 4,781,386 |
| Jul 23, 2026 | Pachapa Eric | VP-CAO & Controller | Other | 2,086 | 0.00 | – |
| Jul 23, 2026 | Pachapa Eric | VP-CAO & Controller | Other | 1,390 | 0.00 | – |
The company
About the Company
AAR Corp. bietet Produkte und Dienstleistungen für die kommerzielle Luftfahrt sowie für Behörden- und Verteidigungsmärkte in Nordamerika, Europa, Afrika, Asien und international an.
- CEO Insider Trades (12 Mo.)
- selling own stock
- Employees
- 7,100
- Headquarters
- Wood Dale, IL
- Address
- One AAR Place, 60191 Wood Dale, United States
- Phone
- 630 227 2000
- Website
- aarcorp.com
- IPO Date
- 01/01/1988
- ISIN
- US0003611052
- Stock Split
- 3:2 on 02/24/1998
- Stock Split
- 3:2 on 10/27/1987
- Stock Split
- 3:2 on 02/11/1986
Management
| Name | Title | Birth Year |
|---|---|---|
| John McClain Holmes III | Chairman, President & CEO | 1977 |
| Dylan Z. Wolin | Chief Financial Officer & Senior VP | 1977 |
| Eric S. Pachapa | VP, Controller & Chief Accounting Officer | 1973 |
| Jessica A. Garascia J.D. | Senior VP, General Counsel, Chief Administrative Officer & Secretary | 1979 |
| Christopher A. Jessup | Senior VP & Chief Commercial Officer | 1978 |
| Sanjay Sood | Senior VP and Chief Digital & Technology Officer | – |
| Christopher Paul Tillett C.F.A. | Vice President of Investor Relations | – |
| Lori A. Knudson | VP and Chief Ethics & Compliance Officer | – |
| Sharon N. Purnell | Senior VP & Chief Human Resources Officer | 1978 |
| Terry D. Stinson | Executive Vice President | 1942 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 07/24/2026 AAR CORP (AIR): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Financial Statements and Exhibits SEC ↗
- 07/21/2026 AAR CORP (AIR): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.