AAR CORP. (AIR)

AAR Corp. reported strong financial performance in Q2 FY2026 with revenue up 16% year-over-year and adjusted EPS of $1.18, revising its FY2026 organic sales growth outlook upwards to approximately 11%. The company completed the integration of the Product Support acquisition and divested its Landing Gear Overhaul business for $51 million. Several analysts commented on AIR shares, with a consensus rating of "Moderate Buy" and an average 12-month price target of $110.80. CAO Jessica A. Garascia sold 4,787 shares of the company's stock. AAR Corp. announced the permanent closure of its Indianapolis maintenance facility by February 28, 2027.

AAR Corp. benefits from a sustained aftermarket upcycle in the aerospace industry, driven by a structural undersupply of new aircraft and aging global aircraft fleets, increasing demand for aftermarket parts and maintenance services. The company experiences strong demand across both its commercial and government end-markets. Quarterly revenue trends show consistent growth rather than pronounced seasonal dips or peaks in recent fiscal years.

AAR Corp. is a global aerospace and defense aftermarket solutions company providing products and services to commercial aviation, government, and defense markets. The company operates through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. Parts Supply involves distribution of new engine and airframe components, and the sale of used serviceable material. Repair & Engineering provides airframe maintenance, repair, and overhaul services, component services, and engineering services. Integrated Solutions offers fleet operations management, customized supply chain logistics, flight-hour support, and its Trax software. Expeditionary Services designs and manufactures tactical products such as pallets, containers, and shelters.

AAR Corp. operates in over 20 countries across North America, Europe, Africa, and Asia. The company's headquarters are in Wood Dale, Illinois. AAR operates major maintenance facilities in several U.S. locations including Greensboro, North Carolina; Lake City, Florida; Miami, Florida; Oklahoma City, Oklahoma; and Rockford, Illinois, as well as facilities in Trois Rivières, Quebec, and Windsor, Ontario, in Canada. Historically, AAR also had maintenance facilities in New York, London, and The Netherlands.

AAR Corp.'s brand reputation was impacted by a $55 million settlement in December 2024 related to an investigation by the U.S. Justice Department and SEC concerning schemes to bribe Nepalese and South African officials. The company self-reported the issue in 2019 and cooperated with the investigation, also making significant investments in its compliance program.

AAR Corp.'s ownership is primarily held by institutional investors, who collectively held 102.0% of AAR's shares as of September 2025. Approximately 59.30% of the company's stock is owned by institutional investors, 1.99% by insiders, and 38.71% by public companies and individual investors. Major institutional owners include BlackRock, Inc., Vanguard Group Inc., and Dimensional Fund Advisors LP.