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Earnings transcript
Read the complete earnings call transcript.
AIR
AAR Corp.
$109.78
-1.59
(-1.43%)
| Exchange: | NYSE |
| Market Cap: | 4.365B |
| Shares Outstanding: | 20.175M |
About The Company
| Sector: | Industrials | |||||
| Industry: | Aerospace & Defense | |||||
| CEO: | John McClain Holmes | |||||
| Full Time Employees: | 5700 | |||||
| Address: |
| |||||
| Website: | https://www.aarcorp.com |
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Aviation Services segment offers aftermarket support and services; inventory management and distribution services; and maintenance, repair, and overhaul, as well as engineering services. This segment also sells and leases new, overhauled, and repaired engine and airframe parts, and components; and provides inventory and repair programs, warranty claim management, and outsourcing programs for engine and airframe parts and components, as well as performance-based supply chain logistics programs in support of the U.S. department of defense and foreign governments. In addition, it offers airframe inspection, maintenance, repair and overhaul, painting, line maintenance, airframe modification, structural repair, avionic and installation, exterior and interior refurbishment, and engineering and support services; and repairs and overhauls components, landing gears, wheels, and brakes. The Expeditionary Services segment provides products and services supporting the movement of equipment and personnel by the U.S. and foreign governments, and non-governmental organizations. This segment also designs, manufactures, and repairs transportation pallets, and various containers and shelters; and provides engineering, design, and system integration services for command and control systems. The company serves domestic and foreign passenger airlines; domestic and foreign cargo airlines; regional and commuter airlines; business and general aviation operators; original equipment manufacturers; aircraft leasing companies; aftermarket aviation support companies; and domestic and foreign military customers. It primarily markets and sells products and services through its employees and foreign sales representatives. AAR Corp. was founded in 1951 and is headquartered 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 | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1,990,500 | 2,318,900 | 2,780,500 |
| Gross Profit | 370,100 | 442,300 | 527,700 |
| EBITDA | 161,300 | 142,700 | 169,500 |
| Operating Income | 133,900 | 129,200 | 185,200 |
| Net Income | 90,200 | 46,300 | 12,500 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 1,833,100 | 2,770,000 | 2,844,600 |
| Total Liabilities | 734,000 | 1,580,200 | 1,633,000 |
| Total Stockholders Equity | 1,099,100 | 1,189,800 | 1,211,600 |
| Total Debt | 317,900 | 1,065,700 | 1,047,600 |
| Cash and Cash Equivalents | 68,400 | 85,800 | 96,500 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 23,300 | 43,600 | 36,100 |
| Capital Expenditure | -29,500 | -29,700 | 0 |
| Free Cash Flow | -6,200 | 13,900 | 36,100 |
| Net Income | 89,800 | 46,300 | 0 |
| Net Change in Cash | 22,900 | 14,300 | 13,100 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 4,339,621.587 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 4,428,855.565 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 4,386,000 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 283,815.680 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 289,651.673 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 286,848.876 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 301,882.434 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 309,977.888 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 306,090.008 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 506,106.539 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 516,513.414 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 511,515.401 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 8.550 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 8.660 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 8.430 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 3 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 1 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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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.
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
1-day price chart preview. Log in for 1W through 5Y ranges and period tabs.
-1.43
Trading Metrics:
| Open: | 108.45 | Previous Close: | 111.37 | |
| Day Low: | 107 | Day High: | 111.7 | |
| Year Low: | 46.51 | Year High: | 122.97 | |
| Price Avg 50: | 110.35 | Price Avg 200: | 87.6 | |
| Volume: | 410162 | Average Volume: | 496723 |
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