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AAR Corp.

AIR

AAR Corp. • NYSE
$83.21 ▲ 0.28% (+0.23)
Market Cap $2.97 B
52w High $89.69
52w Low $46.51
Dividend Yield 0%
P/E 104.01
Volume 180.36K
Outstanding Shares 35.73M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $739.6M ▼ $68.8M ▼ $34.4M ▲ 4.651% ▲ $0.96 $79.6M ▼
Q4-2025 $754.5M ▲ $77.2M ▲ $34M ▲ 4.506% ▲ $0.96 ▲ $80.3M ▲
Q3-2025 $678.2M ▼ $60.6M ▼ $-8.9M ▲ -1.312% ▲ $-0.25 ▲ $20.1M ▲
Q2-2025 $686.1M ▲ $130.9M ▲ $-30.6M ▼ -4.46% ▼ $-0.51 ▼ $11.4M ▼
Q1-2025 $661.7M $73.8M $18M 2.72% $0.51 $57.9M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $80M ▼ $2.93B ▲ $1.68B ▲ $1.249B ▲
Q4-2025 $96.5M ▲ $2.845B ▼ $1.633B ▼ $1.212B ▲
Q3-2025 $84.4M ▲ $2.859B ▲ $1.677B ▲ $1.183B ▲
Q2-2025 $61.7M ▲ $2.849B ▲ $1.668B ▲ $1.182B ▼
Q1-2025 $49.3M $2.783B $1.573B $1.21B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $34.4M ▲ $-44.9M ▼ $-23.8M ▼ $51.1M ▲ $-17.6M ▼ $-56.1M ▼
Q4-2025 $34M ▲ $51.4M ▲ $27.6M ▲ $-70.7M ▼ $8.3M ▼ $51.4M ▲
Q3-2025 $-8.9M ▲ $-18.7M ▼ $-3.7M ▲ $40.8M ▲ $18.4M ▼ $-27.2M ▼
Q2-2025 $-30.6M ▼ $22M ▲ $-7.9M ▼ $5.3M ▲ $19.4M ▲ $29.9M ▲
Q1-2025 $18M $-18.6M $-5.3M $-9.1M $-33M $-26.5M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Product
Product
 $400.00M ▲$420.00M ▲$520.00M ▲$490.00M ▼
Service
Service
 $280.00M ▲$260.00M ▼$240.00M ▼$250.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has risen steadily over the past five years, and growth has recently accelerated, showing strong demand for AAR’s services. Profit at the operating level has also improved, suggesting the core business is scaling reasonably well. However, bottom‑line earnings have moved in the opposite direction: net income and earnings per share peaked a couple of years ago and have since fallen sharply, despite higher sales. This gap between operating progress and weaker net profit likely reflects higher interest costs, integration expenses, or other non‑operating items, and it introduces some uncertainty about how much of the growth is actually flowing through to shareholders.

Balance Sheet

Balance Sheet The balance sheet has grown meaningfully, with total assets expanding, likely helped by acquisitions and capacity investments. Shareholders’ equity has increased steadily, which is a positive sign of accumulated value over time. At the same time, debt levels have risen much faster than equity, and leverage is now materially higher than a few years ago. Cash on hand has improved slightly but still looks modest relative to the size of the business, so the company appears more reliant on borrowed money and ongoing cash generation to support its operations and growth.

Cash Flow

Cash Flow Cash generation has not kept up with the growth story on the income statement. Operating cash flow has trended downward from earlier levels and has been relatively thin in recent years. Free cash flow has hovered around breakeven, with only small surpluses or shortfalls after capital spending. Capital expenditures are not huge but have been creeping up, which further pressures free cash flow. Overall, the business is growing and reporting higher revenues and operating profits, but the cash profile is tighter, suggesting working capital intensity, deal costs, or other timing effects that investors would want to understand more deeply.

Competitive Edge

Competitive Edge AAR operates as an independent maintenance, repair, and overhaul provider with a “nose‑to‑tail” offering, covering parts supply, repairs, and integrated fleet solutions. This independence from aircraft manufacturers and airlines lets the company serve a wide range of customers and aircraft types, which helps diversify risk. Its long operating history, global footprint, and reputation for reliability support a solid competitive position, especially in winning long‑term commercial and government contracts. The strategic move into software and digital solutions deepens customer relationships and raises switching costs. However, the company still competes in a demanding market with strong peers and cyclical exposure to the health of airline and defense budgets.

Innovation and R&D

Innovation and R&D AAR’s innovation strategy leans heavily on digital tools and acquisitions rather than large in‑house research budgets. The Trax and Aerostrat deals give it a strong suite of maintenance and planning software that can be tightly integrated with its physical services, creating a more “sticky” ecosystem for customers. Proprietary platforms like AirVolution and AARIVE, along with drone‑based inspections, point to a focus on data, automation, and visibility for airline and defense clients. Future upside depends on how well AAR expands these digital offerings into predictive analytics, unmanned systems support, and sustainability‑linked solutions, and on how smoothly it continues to integrate acquired technologies into a unified platform.

Summary

AAR is showing clear top‑line momentum and a stronger operating business, supported by a differentiated position as an independent, integrated aviation services provider with growing digital capabilities. The main financial tension is that rising revenue and operating profit have not translated into stronger net income or robust free cash flow, while leverage has increased meaningfully to fund growth and acquisitions. On the strategic side, the company appears well aligned with long‑term trends in aftermarket services, fleet aging, and digitalization, and its software platforms and government exposure enhance its competitive moat. The key watch points are execution on integration, improvement in cash conversion, and managing higher debt levels while continuing to invest in technology and capacity without overstretching the balance sheet.

NEWS

November 25, 2025 · 8:30 AM UTC

Trax selected to power Pan Am's modern maintenance operations

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November 18, 2025 · 4:30 PM UTC

AAR publishes 2025 Sustainability Report

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November 18, 2025 · 8:30 AM UTC

AAR included among Forbes' America's Dream Employers 2026

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November 11, 2025 · 8:30 AM UTC

AAR earns 2026 Military Friendly® Employer and Military Friendly Spouse® Employer designations

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November 3, 2025 · 4:05 PM UTC

AAR acquires HAECO Americas and signs multi-year contracts with key customers, extending North American MRO leadership

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