AAR (AIR) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

AAR

NYSE•Industrials•Aerospace & Defense

$112.12-5.11(-0.04%)After hours

Market Cap

$4.74B

P/E

25.2x

P/S

1.4x

P/B

2.8x

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.

How this company scores

GoodMetricSide Score: 78/100

Strongest: Growth (22/25); weakest: Balance Sheet & Red Flags (17/25).

Profitability19/25

Growth22/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality20/25

Strengths

Growing revenueRising free cash flowRising earningsProfit converts from growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 25.2x5y range 16.1x – 233.1x

Currently near its 19-quarter median.

P/S · 1.4x5y range 0.0x – 1.5x

Currently above its 20-quarter median.

P/B · 2.8x5y range 0.0x – 2.8x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $4.74B

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $3.31B
Q. Revenue: $928.00M
TTM EBITDA: $349.90M
TTM Op. Income: $277.80M
Q. Op. Income: $80.10M
TTM Net Income: $187.70M
Q. Net Income: $50.70M
EPS: $1.255
Shares Out.: $40.40M

$3.31B in TTM revenue grew 19.0% YoY, reaching $928.00M last quarter. TTM EBITDA of $349.90M and TTM operating income of $277.80M show growth is flowing through to the bottom line. TTM net income of $187.70M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 19.0%
EBITDA Margin: 10.9%
Op. Margin: 8.6%
Net Margin: 5.5%

Op. margin of 8.6% is down 1.0% YoY — costs are rising relative to revenue. Net margin at 5.5% and gross margin of 19.0% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 11% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 25.2x
P/S Ratio: 1.4x
P/B Ratio: 2.8x

At 25.2x P/E, the stock trades within typical market levels. P/S of 1.4x and P/B of 2.8x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 7 quarters, P/E has fallen for 5 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $3.36B
Cash: $84.00M
Long-Term Debt: $893.90M
Book Value: $1.70B
D/E Ratio: 0.5
Debt/EBITDA: 8.8

With $3.36B in assets and $893.90M in long-term debt, D/E is 0.5and book value is $1.70B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $55.30M
TTM Free Cash Flow: $62.10M
FCF Margin: 1.9%
FCF / Net Income: 0.3

TTM FCF of $62.10M on $55.30M in operating cash flow. The FCF / Net Income ratio of 0.3x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.