AAR (NYSE:AIR) Posts Earnings Results, Beats Expectations By $0.19 EPS

AAR (NYSE:AIR) issued its quarterly earnings results on Monday. The aerospace company reported $1.49 EPS for the quarter, topping analysts’ consensus estimates of $1.30 by $0.19, Zacks reports. The firm had revenue of $918.00 million for the quarter, compared to analysts’ expectations of $878.81 million. AAR had a return on equity of 13.20% and a net margin of 5.55%.

AAR Stock Down 6.6%

AIR stock opened at $107.45 on Wednesday. The company has a market cap of $4.29 billion, a price-to-earnings ratio of 22.02 and a beta of 1.11. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.24 and a current ratio of 2.84. The business’s 50-day moving average is $131.46 and its two-hundred day moving average is $123.84. AAR has a fifty-two week low of $76.10 and a fifty-two week high of $154.00.

AAR News Roundup

Here are the key news stories impacting AAR this week:

• Positive Sentiment: AAR reported fiscal Q1 2027 revenue of $918 million, up 24% year over year, while adjusted diluted EPS of $1.49 exceeded the $1.29 consensus estimate. Commercial sales rose 28%, government sales increased 14%, and operating cash flow improved to $55.8 million. AAR reports first quarter fiscal year 2027 results
• Positive Sentiment: The company raised second-quarter fiscal 2027 revenue guidance to $906.6 million-$922.5 million, above the roughly $893.5 million analyst consensus, signaling continued demand across its aerospace aftermarket businesses.
• Positive Sentiment: Jefferies raised its price target for AAR to $160, while RBC maintained an Outperform rating with a $145 target, providing supportive analyst sentiment. AAR Corporation price target raised at Jefferies
• Positive Sentiment: AAR agreed to acquire a 65% controlling interest in MRO Holdings, adding more than $1 billion of revenue and potentially increasing adjusted EBITDA margins from approximately 12% to 16% before synergies. Management expects the deal to be adjusted-EPS accretive in the first full fiscal year and is targeting 19%-20% adjusted EBITDA margins within three to four years. AAR acquisition of MRO Holdings
• Neutral Sentiment: The MRO Holdings transaction is expected to close in fiscal Q3 2027 and would substantially expand AAR’s scale and aftermarket exposure, but the longer-term benefits depend on integration and achieving projected synergies.
• Negative Sentiment: Investors appear concerned that the roughly $4 billion enterprise-value transaction will be funded with additional debt and equity, including approximately $780 million in stock issued to MRO owners and a planned $230 million PIPE. Net leverage is expected to rise to about 3.6 times at closing, increasing dilution, balance-sheet risk and execution pressure. Why AAR stock is down today

Analysts Set New Price Targets

A number of brokerages recently issued reports on AIR. Weiss Ratings cut shares of AAR from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday. Jefferies Financial Group raised their price objective on shares of AAR from $155.00 to $160.00 and gave the company a “buy” rating in a research note on Tuesday. KeyCorp reaffirmed a “sector weight” rating on shares of AAR in a report on Wednesday, July 22nd. Royal Bank Of Canada reiterated an “outperform” rating and issued a $145.00 target price on shares of AAR in a research note on Monday. Finally, Zacks Research upgraded shares of AAR from a “hold” rating to a “strong-buy” rating in a report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $140.60.

AAR Company Profile

AAR Corp. is a global provider of aviation services supporting commercial aviation, government and defense customers. The company supplies aircraft parts and equipment, manages inventory and logistics, and provides maintenance, repair and overhaul services for aircraft and components.

AAR’s offerings include parts distribution, supply-chain management, aircraft maintenance, airframe and component repair, and mobility solutions for government and defense operators. Its services are designed to help airlines, aircraft operators and government agencies maintain fleet readiness and manage aviation assets.

Founded in 1955, AAR is headquartered in Wood Dale, Illinois, and serves customers across North America, Europe, Asia and other international markets.