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Earnings transcript
Read the complete earnings call transcript.
AIR
AAR Corp.
$136.31
-2.27
(-1.64%)
| Exchange: | NYSE |
| Market Cap: | 5.438B |
| Shares Outstanding: | 20.175M |
Delayed data
About The Company
| Sector: | Industrials | |||||
| Industry: | Aerospace & Defense | |||||
| CEO: | John McClain Holmes | |||||
| Full Time Employees: | 7100 | |||||
| Address: |
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| Website: | https://www.aarcorp.com |
AAR Corp. delivers a wide array of products and services to the global commercial aviation, government, and defense sectors. Its Aviation Services division focuses on comprehensive aftermarket support, encompassing inventory management, distribution, and extensive maintenance, repair, and overhaul (MRO) capabilities, alongside specialized engineering services. This segment is also involved in the sale and leasing of new, reconditioned, and repaired aircraft engine and airframe components. It manages tailored inventory and repair programs, processes warranty claims, and provides outsourcing solutions for these critical parts. Furthermore, it implements performance-based supply chain logistics programs specifically designed for the U.S. Department of Defense and international governmental bodies. A full suite of airframe services is offered, including inspection, maintenance, repair, overhaul, painting, line maintenance, modifications, structural repairs, avionics installation, and both exterior and interior refurbishment, complemented by engineering and support. The company also performs repair and overhaul on vital components such as landing gears, wheels, and brakes. The Expeditionary Services division is dedicated to facilitating the movement of equipment and personnel for the U.S. and international governments, as well as non-governmental organizations (NGOs). Its capabilities extend to the design, manufacturing, and repair of various transportation pallets, containers, and shelters. This segment also provides engineering, design, and system integration expertise for sophisticated command and control systems. AAR’s diverse clientele includes both domestic and international passenger and cargo airlines, regional and commuter carriers, business and general aviation operators, original equipment manufacturers (OEMs), aircraft leasing firms, other aftermarket aviation support enterprises, and military customers globally. Its marketing and sales efforts are primarily conducted through its dedicated employees and a network of international sales representatives. Established in 1951, AAR Corp. maintains its corporate headquarters in Wood Dale, Illinois.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 2,318,900 | 2,780,500 | 3,308,000 |
| Gross Profit | 442,300 | 527,700 | 622,000 |
| EBITDA | 142,700 | 169,500 | 345,900 |
| Operating Income | 129,200 | 185,200 | 270,600 |
| Net Income | 46,300 | 12,500 | 187,700 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Total Assets | 2,770,000 | 2,844,600 | 3,355,900 |
| Total Liabilities | 1,580,200 | 1,633,000 | 1,652,100 |
| Total Stockholders Equity | 1,189,800 | 1,211,600 | 1,703,800 |
| Total Debt | 1,065,700 | 1,047,600 | 995,000 |
| Cash and Cash Equivalents | 85,800 | 96,500 | 84,000 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Operating Cash Flow | 43,600 | 36,100 | 98,700 |
| Capital Expenditure | -29,700 | 0 | 0 |
| Free Cash Flow | 13,900 | 36,100 | 98,700 |
| Net Income | 46,300 | 0 | 187,700 |
| Net Change in Cash | 14,300 | 13,100 | -1,400 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 4,306,614.847 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 4,429,771.193 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 4,363,700 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 333,614.876 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 343,155.267 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 338,037.017 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 332,173.064 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 344,571.272 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 337,920.008 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 498,123.590 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 512,368.440 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 504,726.331 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 8.800 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 8.970 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 8.650 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 2 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 1 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Strong Financial Performance: AAR Corp reported a 16% year-over-year increase in total sales for Q2 FY2026, as highlighted in the earnings call transcript. This growth reflects robust revenue streams, supported by consistent operating income and net income figures from income statements, indicating effective cost management and profitability.
- Strategic Growth Initiatives: The company’s focus on acquisitions, as noted in the Q2 FY2026 earnings call, has bolstered its market position. These strategic moves have contributed to expanded product and geographic revenue segments, enhancing diversification and stability.
- Positive Free Cash Flow: Cash flow statements indicate strong free cash flow generation, with net cash provided by operating activities showing resilience. This financial health supports reinvestment in operations and potential dividend stability, as evidenced by the dividend yield TTM in key metrics.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates AIR intrinsic value between $5.78 – $18.16 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
[intrinsic_calculator]
Common questions about AIR valuation
Is AAR Corp. (AIR) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for AAR Corp. (AIR) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is AIR a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether AIR trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is AIR’s P/E ratio?
You can see AIR’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for AIR?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is AIR a good long-term investment?
Whether AIR fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
AIR
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Daily snapshot
-1.64
Trading Metrics:
| Open: | 137.97 | Previous Close: | 138.58 | |
| Day Low: | 134.48 | Day High: | 138.17 | |
| Year Low: | 73.05 | Year High: | 154 | |
| Price Avg 50: | 138.57 | Price Avg 200: | 112.45 | |
| Volume: | 49668 | Average Volume: | 438026 |
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YouTube Video Transcript: Comprehensive Stock Analysis of AAR Corp. (AIR) Hey everyone, welcome back to the channel! I’m thrilled to dive into a deep, comprehensive analysis of AAR Corp., ticker symbol AIR, a player in the aerospace and defense industry that’s been making waves lately. If you’re looking for long-term investment insights, or just curious about this company’s potential, you’ve come to the right place. We’ll break down everything from financials to recent performance, valuation, and more. So, grab a…
