AAR Corp (AIR)
🔔 Watch stock
AAR is the spare-parts warehouse and repair shop of aviation — and it shows up in the top 20 of our "Joshua" growth scanner (rank 11, as of July 17, 2026), just below its all-time high after a 94 percent gain in twelve months. We read the annual reports (10-K) for fiscal years 2024 and 2025 and the quarterly report (10-Q) as of February 28, 2026: revenue that rose over three years from $1,990 million to $2,780 million while net income crashed from $90 million to $12 million — a $55.6 million corruption settlement, a 67.9 percent tax rate, and a record quarter in which nearly half the pre-tax profit came from one-off items. Not investment advice — just the question of how much earning power is left once you strip out the asterisks.
Appears in These Scanners
This stock currently matches 17 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
Uses AIEingestuft am 17.07.2026 gegen den Geschäftsbericht (10-K) für das Geschäftsjahr 2025 (eingereicht 22.07.2025), den 10-K für das GJ 2024 sowie die vier jüngsten Quartalsberichte (10-Q). AAR Corp ist ein Luftfahrt-Aftermarket-/MRO-Dienstleister und verkauft keine KI als eigene Umsatzquelle. Die 2023 übernommene Software-Tochter Trax setzt Künstliche Intelligenz jedoch operativ ein, um Wartungsabläufe (MRO-Workflows) in ihren eMRO-/eMobility-Produkten zu automatisieren; zusätzlich beschreibt AAR im 10-K 2025, man „explore“ die Einführung von KI-Strategien für die eigenen Produkte und Dienstleistungen. Das ist dokumentierter operativer/produktbezogener KI-Einsatz zur Effizienzsteigerung — aber (noch) keine eigenständige KI-Umsatzquelle und kein konkretes, gegen das eigene Geschäftsmodell gerichtetes KI-Risiko (die weiteren KI-Nennungen im 10-K sind generische Cybersecurity-Floskeln). Nach der Vorrang-Regel verkauft > bedroht > nutzt > neutral bleibt es damit bei „nutzt“.
View the full file — quotes, sources, reviewed filings
„Through its eMRO and eMobility products, Trax provides comprehensive software solutions for aircraft maintenance ... a full suite of “paperless” mobility apps that are in process of automating MRO workflows with artificial intelligence."
Über ihre Produkte eMRO und eMobility bietet Trax umfassende Softwarelösungen für die Flugzeugwartung … eine vollständige Suite „papierloser“ Mobility-Apps, die dabei sind, Wartungsabläufe (MRO-Workflows) mit Künstlicher Intelligenz zu automatisieren.
„In addition, we are exploring implementing artificial intelligence strategies for our products and services, which may be costly or ineffective, introduce errors, cause loss of intellectual property, and raise complex regulatory compliance ... concerns."
Darüber hinaus prüfen wir die Einführung von Strategien für Künstliche Intelligenz für unsere Produkte und Dienstleistungen, was kostspielig oder wirkungslos sein, Fehler verursachen, zum Verlust geistigen Eigentums führen und komplexe regulatorische Compliance-Fragen aufwerfen kann.
Filings Reviewed: 10-Q 2026-03-25 · 10-Q 2026-01-07 · 10-Q 2025-09-23 · 10-K 2025-07-22 · 10-Q 2025-03-28 · 10-K 2024-07-19
Rated on July 17, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.87 | -228.90 | 686 | 25.80 | -4.50 | 22 | 30 |
| 2025: Q1 | -0.25 | -163.20 | 678 | 19.50 | -1.30 | -19 | -27 |
| 2025: Q2 | 0.96 | 271.50 | 755 | 14.90 | 4.50 | 51 | 41 |
| 2025: Q3 | 0.96 | 89.50 | 740 | 11.80 | 4.70 | -45 | -54 |
| 2025: Q4 | 0.94 | – | 795 | 15.90 | 4.40 | 14 | 6 |
| 2026: Q1 | 1.79 | – | 845 | 24.60 | 8.00 | 75 | 42 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
The aviation aftermarket is a structural growth market (aging fleets, high utilization, parts scarcity), and AAR is one of the few large independent players, with four segments and two customer worlds (71% commercial, 29% government/defense). Revenue FY 2025 +19.9% to $2,780.5 million, 9M FY 2026 +17.5% (10-K FY 2025, 10-Q as of 02/28/2026).
Reported profit is distorted three years running: a $55.6 million FCPA settlement (pushed FY 2025 to $12.5 million net income, a 67.9% tax rate), then a $35.7 million bargain purchase plus a $9.8 million building gain in Q3 FY 2026 — roughly $45 of the $93.1 million pre-tax income are one-off. Whoever does not adjust is valuing phantom profits.
$888.3 million of long-term debt (6.75% note due 2029, increased to $700 million) against $1,643.4 million of equity (02/28/2026); interest expense FY 2025 +$32.2 million — the acquisition-driven growth is built on debt, but leverage is contained with a 3.75x EBITDA covenant. No dividend.
FCPA settlement with the DoJ (an 18-month Non-Prosecution Agreement to mid-2026) and the SEC (both 12/19/2024); a meaningful share of business in "high-risk jurisdictions"; a separate Nepal proceeding against more than 35 parties including an AAR subsidiary. Plus 17 insider sales against no purchase at an all-time high (data as of July 17, 2026).
A stage-2 uptrend, above the 50-/200-day averages, "Joshua" and "quality growth" hits, plus 94% in twelve months meet a P/E around 31, a P/S around 1.8 and a P/B around 3.5 (data as of July 17, 2026) — a quality stock at an all-time high whose profit denominator is jumpy from special items.
AAR is the spare-parts warehouse and repair shop of aviation — a growing, independent aftermarket consolidator in a structurally attractive end market. The operating business is healthy (revenue +19.9% in FY 2025), but reported profit is a roller coaster: a $55.6 million corruption settlement crushed FY 2025 (a 67.9% tax rate), and roughly $45 million of one-off gains inflated the Q3 FY 2026 record quarter. On top come $888 million of acquisition debt, no dividend, and insiders selling at an all-time high. Whoever invests here buys a quality consolidator — but has to back out the true, recurring profit from the noise. Not investment advice.
- AIR reached our research list via the "Joshua" growth scanner (rank 11 of the top 20, as of July 17, 2026) and a confluence of stage-2 trend, "quality growth," above the 50-/200-day averages and institutional accumulation in our in-house stock scanner.
- Mind the calendar: AAR’s fiscal year ends May 31 — every quarterly reference carries that fiscal-year offset (FY 2025 = June 2024 through May 2025).
- Reported net income is distorted by special items (FCPA settlement Q2 FY 2025; bargain purchase and building gains Q3 FY 2026) — trailing metrics such as the P/E should be read with caution accordingly. Price and valuation figures are dated to July 17, 2026; analyses are evergreen, daily prices are not a buy argument.
About the Company
AAR Corp. bietet Produkte und Dienstleistungen für die kommerzielle Luftfahrt sowie für Behörden- und Verteidigungsmärkte in Nordamerika, Europa, Afrika, Asien und international an.
| CEO Insider Trades (12 Mo.) | selling own stock |
|---|---|
| Employees | 5,600 |
| Headquarters | Wood Dale, IL |
| Website | aarcorp.com |
| IPO Date | 1. Jan 1988 |
| Next Earnings | 15. Jul 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| John McClain Holmes III | Chairman, President & CEO | 1977 |
| Eric S. Pachapa | VP, Controller & Chief Accounting Officer | 1973 |
| Jessica A. Garascia J.D. | Senior VP, General Counsel, Chief Administrative Officer & Secretary | 1979 |
| Christopher A. Jessup | Senior VP & Chief Commercial Officer | 1978 |
| Dylan Z. Wolin | Chief Financial Officer & Senior VP | 1977 |
| John Janachowski | Interim Chief Digital and Technology Officer | – |
| Christopher Paul Tillett C.F.A. | Vice President of Investor Relations | – |
| Lori A. Knudson | VP and Chief Ethics & Compliance Officer | – |
| Sharon N. Purnell | Senior VP & Chief Human Resources Officer | 1978 |
| Terry D. Stinson | Executive Vice President | 1942 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.