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AAR Corp (AIR)


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Upturn Advisory Summary
10/15/2025: AIR (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $91
1 Year Target Price $91
5 | Strong Buy |
1 | Buy |
0 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -38.73% | Avg. Invested days 26 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.22B USD | Price to earnings Ratio 101.6 | 1Y Target Price 91 |
Price to earnings Ratio 101.6 | 1Y Target Price 91 | ||
Volume (30-day avg) 6 | Beta 1.52 | 52 Weeks Range 46.51 - 89.69 | Updated Date 10/13/2025 |
52 Weeks Range 46.51 - 89.69 | Updated Date 10/13/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.8 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-09-22 | When Before Market | Estimate 1.04 | Actual 1.08 |
Profitability
Profit Margin 1.01% | Operating Margin (TTM) 8.37% |
Management Effectiveness
Return on Assets (TTM) 4.37% | Return on Equity (TTM) 2.35% |
Valuation
Trailing PE 101.6 | Forward PE 18.69 | Enterprise Value 4303493619 | Price to Sales(TTM) 1.12 |
Enterprise Value 4303493619 | Price to Sales(TTM) 1.12 | ||
Enterprise Value to Revenue 1.42 | Enterprise Value to EBITDA 21.11 | Shares Outstanding 39562491 | Shares Floating 34787404 |
Shares Outstanding 39562491 | Shares Floating 34787404 | ||
Percent Insiders 2.19 | Percent Institutions 89.05 |
Upturn AI SWOT
AAR Corp

Company Overview
History and Background
AAR Corp. was founded in 1951. It initially focused on aircraft parts distribution and has evolved into a global provider of aviation services to commercial and government customers. Key milestones include expanding into maintenance, repair, and overhaul (MRO) services, as well as supply chain solutions.
Core Business Areas
- Aviation Services: This segment provides MRO, engineering, and supply chain solutions to airlines, OEMs, and government customers. It includes airframe maintenance, component repair, and inventory management.
- Expeditionary Services: This segment provides mobility systems and support for defense and humanitarian operations. It includes manufacturing of cargo pallets, shelter systems, and related services.
Leadership and Structure
AAR Corp. is led by a Board of Directors and a senior management team. The organizational structure is divided into the Aviation Services and Expeditionary Services segments, each with dedicated leadership.
Top Products and Market Share
Key Offerings
- Airframe Maintenance: AAR provides comprehensive airframe maintenance services, including heavy checks, modifications, and repairs. Market share is estimated at 5-7% of the global airframe MRO market. Competitors include ST Engineering, Lufthansa Technik, and AFI KLM E&M.
- Component Repair: AAR offers repair and overhaul services for aircraft components, including avionics, hydraulics, and pneumatics. Competitors include Honeywell, Collins Aerospace and Safran.
- Inventory Management: AAR provides inventory management solutions for aircraft parts, including warehousing, distribution, and supply chain optimization. This segment has seen growth due to supply chain constraits in the aerospace market. Key Competitors include Boeing, Airbus, and aftermarket suppliers.
- Mobility Systems: AAR's Expeditionary Services segment manufactures cargo pallets, shelter systems, and related mobility products for military and humanitarian applications. Competitors include companies like HDT Global and General Dynamics.
Market Dynamics
Industry Overview
The aviation services industry is characterized by increasing demand for MRO services, driven by the growing global aircraft fleet. The expeditionary services market is influenced by government defense spending and humanitarian aid efforts.
Positioning
AAR Corp. is positioned as a leading independent provider of aviation services, with a strong reputation for quality and reliability. Its competitive advantages include its global network, technical expertise, and long-standing customer relationships.
Total Addressable Market (TAM)
The global MRO market is estimated to be worth over $100 billion. The mobility systems and support market is heavily dependent on government contracts, estimated to be approximately $10 billion annually. AAR Corp. is positioned to capture a portion of these markets through its diverse service offerings.
Upturn SWOT Analysis
Strengths
- Strong market position in aviation services
- Diversified service offerings
- Global network
- Long-standing customer relationships
- Technical expertise
Weaknesses
- Dependence on airline industry cycles
- Exposure to government defense spending fluctuations
- Competition from larger players
- Supply chain vulnerabilities
Opportunities
- Expanding MRO services in emerging markets
- Increasing demand for digital solutions in aviation
- Growing demand for sustainable aviation solutions
- Acquiring complementary businesses
Threats
- Economic downturns
- Geopolitical instability
- Technological disruptions
- Increased competition
Competitors and Market Share
Key Competitors
- HEI (HEI.A)
- LHA (DLAKY)
- AIR (EADSY)
Competitive Landscape
AAR Corp. faces competition from larger, more diversified players in the aviation services industry. AAR's advantage lies in its specialization, agility, and customer focus.
Major Acquisitions
Airinmar
- Year: 2018
- Acquisition Price (USD millions): 235
- Strategic Rationale: Expanded AAR's supply chain solutions and predictive maintenance capabilities.
Growth Trajectory and Initiatives
Historical Growth: Historical growth requires financial data to be added.
Future Projections: Future projections are available from analyst research reports.
Recent Initiatives: Recent initiatives include expanding into new markets, investing in technology, and pursuing strategic acquisitions.
Summary
AAR Corp. is a moderately strong player in the aviation services industry. It benefits from a diversified service portfolio and established customer relationships. However, it is exposed to cyclical industry conditions and faces competition from larger players. Strategic initiatives focused on technology and market expansion should improve its growth prospects.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It is not financial advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About AAR Corp
Exchange NYSE | Headquaters Wood Dale, IL, United States | ||
IPO Launch date 1988-01-01 | Chairman, President & CEO Mr. John McClain Holmes III | ||
Sector Industrials | Industry Aerospace & Defense | Full time employees 5600 | Website https://www.aarcorp.com |
Full time employees 5600 | Website https://www.aarcorp.com |
AAR Corp. provides products and services to commercial aviation, government, and defense markets in North America, Europe, Africa, Asia, and internationally. It operates through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. The company leases and sells aircraft components and replacement parts; and designs, manufactures, and repairs transportation pallets. The company also provides airframe maintenance services, such as airframe inspection, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior, and interior refurbishment services; component repair services, including maintenance, repair, and overhaul services, engine and airframe accessories, and interior refurbishment; and engineering services, such as integration, certification and procurement. In addition, it develops aircraft components and parts; designs proprietary designated engineering representative repairs; and provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating workflows. Further, the company engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services, as well as engineering, design, and system integration services for specialized command and control systems; and flight hour component inventory and repair services. Additionally, it offers containers and shelters for military and humanitarian tactical deployment activities; and shelters, such as stationary and vehicle-mounted applications. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

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