Business Description

AAR Corp. is an independent provider of aviation services to commercial and government customers worldwide. Headquartered in Wood Dale, Illinois, the company specializes in aftermarket support, including aircraft maintenance, repair, and overhaul (MRO), as well as parts distribution. AAR operates through four main segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.

Financial Statements

In thousands, USD
FY 2026FY 2025FY 2024FY 2023
Total Revenues3,308,0002,780,5002,318,9001,990,500
Cost of Sales2,686,0002,252,8001,876,6003,240,800
Gross Profit622,000527,700442,300370,100
Selling, General & Administrative Expenses349,300347,700312,200230,400
Other Operating Expenses(5,100)(5,200)9005,800
Operating Profit277,800185,200129,200133,900
Interest and Investment Income1,6001,8002,2001,000
Interest Expense(72,100)(75,400)(43,200)(12,200)
Non-Operating Income38,600(72,700)(29,900)(1,500)
Total Non-Operating Income(31,900)(146,300)(70,900)(12,700)
Income Before Provision for Income Taxes245,90038,90058,300121,200
Provision for Income Taxes58,20026,40012,00031,400
Consolidated Net Income187,70012,50046,30089,800
Net Income Attributable to Discontinued Operations400
Net Income Attributable to Common Shareholders187,70012,50046,30090,200
Basic EPS4.880.351.302.56
Diluted EPS4.860.351.292.53
Basic Weighted Average Shares Outstanding38,30035,60035,10034,700
Diluted Weighted Average Shares Outstanding38,40035,80035,40035,100
Shares Outstanding39,88035,83035,69434,916
FY 2026FY 2025FY 2024FY 2023
Cash and Cash Equivalents84,00096,50085,80068,400
Total Cash and Cash Equivalents84,00096,50085,80068,400
Accounts Receivable386,800354,800287,200241,300
Other Receivables148,400140,300123,20086,900
Total Trade Receivables535,200495,100410,400328,200
Inventories979,000809,200733,100574,100
Other Current Assets143,900109,800160,300127,200
Total Current Assets1,742,1001,510,6001,389,6001,097,900
Net Property, Plant & Equipment377,700251,800268,300189,800
Net Intangible Assets281,600219,600235,40063,700
Goodwill580,300530,800554,800175,800
Other Long-Term Assets374,200331,800321,900305,900
Total Assets3,355,9002,844,6002,770,0001,833,100
Accounts Payable295,600303,100238,000158,500
Accrued Expenses267,300211,300219,300179,600
Unearned Revenue50,30040,300
Other Current Liabilities9,60013,400
Total Current Liabilities613,200554,700466,900351,500
Long-Term Debt893,900968,000985,400269,700
Leases101,10079,60080,30048,200
Other Long-Term Liabilities43,90030,70047,60064,600
Total Long-Term Liabilities1,038,9001,078,3001,113,300382,500
Total Liabilities1,652,1001,633,0001,580,200734,000
Common Stock48,80045,30045,30045,300
Treasury Stock(287,900)(302,700)(297,500)(317,800)
Additional Paid-in Capital789,700505,200493,900484,500
Accumulated Other Comprehensive Income(3,900)(5,600)(8,800)(23,500)
Retained Earnings1,157,100969,400956,900910,600
Total Common Shareholders' Equity1,703,8001,211,6001,189,8001,099,100
Total Shareholders' Equity1,703,8001,211,6001,189,8001,099,100
Total Liabilities and Shareholders' Equity3,355,9002,844,6002,770,0001,833,100
FY 2026FY 2025FY 2024FY 2023
Net Income187,70012,50046,300179,600
Depreciation & Amortization72,10055,20040,20027,200
Share-Based Compensation Expense17,80019,90015,30013,500
Other Adjustments(43,400)60,8008,1005,300
Changes in Trade Receivables15,800(109,400)(22,400)(31,800)
Changes in Inventories(69,000)(109,300)(90,400)(23,600)
Changes in Accounts Payable(49,900)70,50059,400
Changes in Accrued Expenses21,60040,90016,900(6,400)
Changes in Other Operating Activities(54,000)(5,000)(29,600)(50,200)
Cash from Operating Activities98,70036,10043,60023,300
Capital Expenditure(36,600)(34,700)(29,700)(29,500)
Proceeds from Sale of Property, Plant & Equipment25,1004,700
Payments for Business Acquisitions(259,400)(1,500)(722,900)(103,300)
Proceeds from Business Divestments60048,000
Other Investing Activities(38,400)(5,800)(5,900)(5,200)
Cash from Investing Activities(308,700)10,700(758,500)(138,000)
Issuance of Short-Term Debt172,000
Net Issuance / (Repayments) of Short-Term Debt172,000
Issuance of Long-Term Debt153,000550,000
Net Issuance / (Repayments) of Long-Term Debt153,000550,000
Issuance of Common Shares285,100(3,500)19,60017,700
Repurchases of Common Shares(10,100)(5,100)(50,100)
Net Issuance / (Repurchases) of Common Shares285,100(13,600)14,500(32,400)
Other Financing Activities(229,500)(20,100)164,700(1,900)
Cash from Financing Activities208,600(33,700)729,200137,700
Effect of Exchange Rate Changes on Cash and Cash Equivalents(100)
Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash(1,400)13,10014,30022,900

Key Metrics & Ratios

MetricValue
Market Cap$4.49B
P/E23.17x
P/S1.36x
EV/EBITDA15.44x
Return on Equity12.9%
Return on Invested Capital8.7%
Current Ratio2.84x
Dividend Yield0.0%
Free Cash Flow Margin1.9%

Margins

Gross margin
18.8%
Operating margin
8.4%
Net margin
5.7%

Quarterly Trend

QuarterRevenueYoY growthOperating marginOperating income
Q4 2026 $928M +23.0% 8.6% $80M
Q3 2026 $845M +24.6% 7.8% $66M
Q2 2026 $795M +15.9% 8.4% $67M
Q1 2026 $740M +11.8% 8.8% $65M
Q4 2025 $754M 9.7% $73M
Q3 2025 $678M 10.5% $71M
Q2 2025 $686M -0.3% $-2M
Q1 2025 $662M 6.6% $43M

More on AAR CORP.

Figures compiled from public company filings.

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