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AAR Corp(AIR)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Growth is steady rather than explosive, tied to broader aerospace industry cycles. |
| Momentum investor | Strong fit while signal remains positive | The stock can exhibit momentum during periods of strong sector-wide aviation recovery. |
| Value investor | Strong fit | Valuations are often reasonable relative to the stable, recurring nature of MRO contract revenue. |
| Dividend investor | Weak fit | The dividend yield is typically low as capital is prioritized for business expansion. |
| Low-risk investor | Mixed fit | Exposure to industrial and cyclical aerospace risks creates moderate volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock price is sensitive to cyclical aerospace trends and broader market sentiment. |
| Valuation risk | Medium | Extended valuation premiums can occur during sector rotation into defense and aerospace. |
| Competition risk (OEM aftermarket) | High | Increased OEM control over proprietary parts and data limits independent MRO market access. |
| Business quality | Medium / high | Strong recurring revenue through multi-year contracts supports long-term quality. |
| Dividend income | Low | The company does not prioritize income distribution to shareholders. |
| Execution risk | Medium | Successfully integrating acquisitions and managing labor shortages is critical to margin maintenance. |
Price Behavior

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

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 Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
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 area | What it includes | Retail investor read |
|---|---|---|
| Aviation Services | MRO, 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 Services | Logistics 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
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 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
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)
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)
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)
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)
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)
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)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
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)
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)
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)
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)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
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)
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)
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 | Website https://www.aarcorp.com |
Full time employees 7100 | 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, 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.

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