# AAR Corp. (AIR)

> Source: Nexqual · https://nexqual.com/AIR · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, AAR Corp. (AIR), nexqual.com/AIR" · informational, not investment advice.

**Price:** USD 96.67 (-2.98% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 99.64 · day 94.05–98.63 · 52w 76.1–154 · market cap $3.89B · NYQ

## Key facts
- Last four reported quarters (through Aug 31, 2026): revenue $3.49B, net income $193M (5.5% margin), free cash flow $160M (SEC filings).
- Valuation: P/E 20.1x (avg 84.4x at the last 3 fiscal year-ends), net debt $775M.
- 3 of 80 tracked superinvestors hold AIR (13F, Q2 2026): 0 new, 2 added, 1 reduced, 0 unchanged.
- Analysts: Buy (mean 2.14 on a 1–5 scale) (7 analysts), mean target USD 154.5 (range 145–168).
- Total return with dividends: 1Y +12.8% vs S&P 500 +14.9%; 5Y +176.5% vs S&P 500 +80.3%.
- Next earnings: 2026-09-28, EPS estimate USD 1.38, revenue estimate $894M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.82B | $1.99B | $2.32B | $2.78B | $3.31B | $3.49B |
| Gross profit | $313M | $370M | $442M | $528M | $622M | — |
| Net income | $78.7M | $90.2M | $46.3M | $12.5M | $188M | $193M |
| EPS (diluted) | $2.17 | $2.53 | $1.29 | $0.35 | $4.86 | — |
| Free cash flow | $57.9M | -$6.2M | $13.9M | $1.4M | $62.1M | $160M |
| Gross margin | 17.2% | 18.6% | 19.1% | 19.0% | 18.8% | — |
| Net margin | 4.3% | 4.5% | 2.0% | 0.4% | 5.7% | 5.5% |
| Revenue growth | +10.1% | +9.4% | +16.5% | +19.9% | +19.0% | — |
| Cash + short-term investments | $53.5M | $68.4M | $85.8M | $96.5M | $84.0M | — |
| Total debt | $100M | $272M | $985M | $968M | $894M | — |
Fiscal years end May. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Aug 31, 2026)
P/E 20.1x · P/S 1.1x · EV/Sales 1.3x · P/FCF 24.3x · P/B 2.2x · FCF yield 4.11% · Earnings yield 4.98% · Net debt $775M · EV $4.66B
P/E at fiscal year-ends: May 2026 23.0x, May 2025 175.9x, May 2024 54.3x.

## Superinvestors (SEC 13F-HR, Q2 2026)
3 of 80 tracked investors hold AIR. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Mairs & Power | Mairs & Power Funds | 0.11% | $12.0M | Reduced -6.1% |
| Polen Capital | Polen Capital Management | 0.03% | $3.4M | Added +45.4% |
| First Eagle Investment | First Eagle Investment Management | 0.02% | $11.6M | Added +26.7% |

## Analysts
Consensus Buy (mean 2.14 on a 1–5 scale), 7 analysts; mean target USD 154.5 (low 145, high 168).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-09-29 | Jefferies | Target raised | Buy | $155 → $160 |
| 2026-09-28 | RBC Capital | Reiterated | Outperform | $145 |
| 2026-09-15 | Guggenheim | Initiated | Neutral |  |
| 2026-07-27 | Truist Securities | Target raised | Buy | $128 → $145 |
| 2026-07-14 | Jefferies | Target raised | Buy | $150 → $155 |
| 2026-06-30 | Keybanc | Downgrade | Overweight → Sector Weight |  |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +12.8% | +176.5% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +12.9% | +22.5% |
| Volatility (annualized) | 44.1% | 35.8% |
| Max drawdown | -37.1% (Aug 2026→Oct 2026) | -33.5% (Aug 2026→Oct 2026) |

## Peers (Aerospace & Defense)
KTOS (Kratos Defense & Security Solut) USD 38.27 -1.21% · SARO (StandardAero, Inc.) USD 21.72 +1.26% · CAE (CAE Inc) USD 25.02 +2.08% · DRS (Leonardo DRS, Inc.) USD 34.3 +1.06% · MOG-A (Moog Inc.) USD 341.71 -6.96% · HII (Huntington Ingalls Industries, ) USD 278.86 +1.79%

## More
Full page: https://nexqual.com/AIR · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in AIR's own 10-K filed 2026-07-22 (https://www.sec.gov/Archives/edgar/data/1750/000110465926085459/air-20260531x10k.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Airbus | "Our Repair, Engineering, and Software segment primarily supports narrow-body Airbus, Boeing and Embraer regional aircraft for customers, as well as U.S. government defense agencies." |
| Customer | Boeing (BA) | "Our Repair, Engineering, and Software segment primarily supports narrow-body Airbus, Boeing and Embraer regional aircraft for customers, as well as U.S. government defense agencies." |
| Partner | Asia | "We also have an interest in a joint venture supporting the distribution of OEM parts to customers in Asia." |

## Revenue by business segment (quarter ended 2026-08-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Aviation Services | $918.0M | 96.0% | +24.1% |
| — Parts Supply (part of Aviation Services) | $414.8M | 43.4% | +30.5% |
| — Repair Engineering & Software (part of Aviation Services) | $297.5M | 31.1% | +31.4% |
| — Government Solutions (part of Aviation Services) | $138.8M | 14.5% | +3.7% |
| — Legacy Commercial Programs (part of Aviation Services) | $66.9M | 7.0% | +8.8% |
| Reportable Segment Aggregation Before Corporate & Other Operating | $918.0M | 96.0% | +24.1% |
| Total revenue | $956.7M | 100% | — |
The lines above cover 191.9% of total revenue.

## Revenue by product line (quarter ended 2026-08-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Product | $603.7M | 63.1% | +23.8% |
| Service | $314.3M | 32.9% | +24.8% |
| Government Programs | $106.0M | 11.1% | -5.1% |
| Component Repair Program | $63.1M | 6.6% | +17.1% |
| Mobility Systems | $32.8M | 3.4% | +47.7% |
| Distribution Of C & E Inventory | $3.8M | 0.4% | -50.0% |
| Total revenue | $956.7M | 100% | — |
The lines above cover 117.5% of total revenue.

## Company outlook (8-K filed 2026-09-28)

- "SECOND QUARTER AND FULL YEAR FISCAL 2027 GUIDANCE The Company is providing the following guidance for the second quarter and full year fiscal 2027."
- "This guidance does not include any impact of the MRO Holdings acquisition: Second quarter FY 2027 As of September 28, 2026 Sales growth (ex."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-11-30) | $1.38 | $1.36 | +1.4% | $894.3M | 6 |
| Next quarter (ends 2027-02-28) | $1.44 | $1.35 | +6.8% | $910.9M | 6 |
| Current fiscal year (ends 2027-05-31) | $5.80 | $5.59 | +3.8% | $3.69B | 8 |
| Next fiscal year (ends 2028-05-31) | $6.71 | $6.50 | +3.3% | $3.94B | 7 |