AAR Corp logo

AAR Corp(AIR)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$112.77
09/18/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for AIR

09/18/2026: AIR (1-star) is currently NOT-A-BUY. Pass it for now.

AAR Corp is an independent aviation services company that provides essential maintenance, repair, and overhaul (MRO) and supply chain support to commercial and government operators. The company is known for its neutral, third-party service model, which helps it maintain long-term relationships despite competition from large OEMs. Its main growth opportunity lies in digital transformation through software acquisitions and expanding its hangar footprint to meet high global demand. Primary risks include the consolidation of aftermarket services by OEMs and cyclical sensitivity to air travel. AAR Corp may suit investors seeking exposure to the aviation services sector, though potential investors should monitor labor costs and long-term contract success.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is steady rather than explosive, tied to broader aerospace industry cycles.
Momentum investorStrong fit while signal remains positiveThe stock can exhibit momentum during periods of strong sector-wide aviation recovery.
Value investorStrong fitValuations are often reasonable relative to the stable, recurring nature of MRO contract revenue.
Dividend investorWeak fitThe dividend yield is typically low as capital is prioritized for business expansion.
Low-risk investorMixed fitExposure to industrial and cyclical aerospace risks creates moderate volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock price is sensitive to cyclical aerospace trends and broader market sentiment.
Valuation riskMediumExtended valuation premiums can occur during sector rotation into defense and aerospace.
Competition risk (OEM aftermarket)HighIncreased OEM control over proprietary parts and data limits independent MRO market access.
Business qualityMedium / highStrong recurring revenue through multi-year contracts supports long-term quality.
Dividend incomeLowThe company does not prioritize income distribution to shareholders.
Execution riskMediumSuccessfully integrating acquisitions and managing labor shortages is critical to margin maintenance.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -43.65%
Avg. Invested days 28
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/18/2026

Upturn Scorecard

Upturn Star Rating

AIR receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

AIR has solid overall fundamentals (4 stars), with moderate financial health, strong growth momentum, and solid ownership. In FY2026 versus FY2025, strong earnings growth (+1401.6%) and solid revenue growth (+19.0%) are partially offset by soft cash generation (FCF margin 1.0%), soft profitability (net margin 5.7%), modest insider ownership of 2.47%.

Financial Health Rating

AIR's financial health is supported by solid cash strength, including free-cash-flow generation (1.0% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Free-cash-flow growth is AIR's strongest growth driver at +2278.6% FY2026 versus FY2025 (strong, 5 stars). Revenue growth (+19.0%, solid) and earnings growth (+1401.6%, strong) are also constructive, though not equally high across every growth measure.

Ownership

Institutional ownership is 102.6% and approximately 95.4% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 2.47% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 15.34%
State Street Corp 6.43%
Vanguard Portfolio Management, LLC 5.29%
Dimensional Fund Advisors, Inc. 4.80%
Vanguard Capital Management, LLC 4.21%

Unit Economics (Per $1K Revenue)

AIR generates approximately $188 of gross profit, $82 of operating income, and $10 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 23.67%

Quantitative Style Profile

AIR has a liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedSmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 4.51B USD
Price to earnings Ratio 24.11
1Y Target Price 145.2
Price to earnings Ratio 24.11
1Y Target Price 145.2
Volume (30-day avg) 395.0K shares
Beta 1.11
52 Weeks Range 74.25 - 154.00
Updated Date 09/18/2026
52 Weeks Range 74.25 - 154.00
Updated Date 09/18/2026
Dividends yield (FY) -
Basic EPS (TTM) 4.65

How Company Makes Money

Business areaWhat it includesRetail investor read
Aviation ServicesMRO, parts supply, and repair services for commercial airlines.The primary revenue driver is keeping commercial planes flying safely through routine maintenance and parts replacement.
Expeditionary ServicesLogistics and fleet management for government and military clients.This segment provides steady income through long-term government contracts.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 24.11
Forward PE 20.92
Enterprise Value 5.63B
Price to Sales(TTM) 1.36
Enterprise Value 5.63B
Price to Sales(TTM) 1.36
Enterprise Value to Revenue 1.7
Enterprise Value to EBITDA 14.43
Shares Outstanding 40.26M
Shares Floating 38.40M
Shares Outstanding 40.26M
Shares Floating 38.40M
Percent Insiders 2.47
Percent Institutions 102.62

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About AAR Corp

Exchange NYSE
Headquarters 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 7100
Full time employees 7100

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, and Software; Government Solutions; and Legacy Commercial Programs. The company sells and leases used serviceable material and aftermarket distribution of new, and original equipment manufacturers supplied replacement parts. It also provides airframe maintenance, repair, and overhaul (MRO) services, such as airframe inspection, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior and interior refurbishment and engineering services, and support for various commercial and military aircraft; component MRO services, including repair and overhaul services, engine and airframe accessories, and interior refurbishment; software solutions comprising cloud-based, mobile, and AI-enabled aviation aftermarket software; develops PMA parts for aftermarket applications; and designs proprietary designated engineering representative repairs. In addition, the company designs, manufactures, and repairs transportation pallets; offers fleet management and operations 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; and engineering, design, and system integration services for specialized command and control systems. Further, it provides asset-heavy flight hour-based component pool and repair programs for commercial airlines and distribution of consumables and expendables inventory. 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.