AAR (NYSE:AIR) Reaches New 1-Year High Following Better-Than-Expected Earnings

AAR Corp. (NYSE:AIR)’s stock price hit a new 52-week high during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $89.70 and last traded at $88.7320, with a volume of 607599 shares traded. The stock had previously closed at $88.02.

The aerospace company reported $1.18 EPS for the quarter, beating analysts’ consensus estimates of $1.02 by $0.16. The business had revenue of $795.30 million during the quarter, compared to analyst estimates of $760.95 million. AAR had a return on equity of 12.40% and a net margin of 3.17%.AAR’s quarterly revenue was up 15.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.90 EPS.

AAR News Summary

Here are the key news stories impacting AAR this week:

• Positive Sentiment: Q2 results topped Street expectations — AAR reported $1.18 EPS vs. $1.02 expected and revenue of $795.3M (beat estimates) with ~16% YoY revenue growth, signaling recovery in parts & services and supporting the rally. AAR reports second quarter fiscal year 2026 results
• Positive Sentiment: Company raised revenue guidance/targets for the quarter and FY26 and highlighted margin expansion from acquisitions — increased visibility on top-line momentum is supporting investor bullishness. AAR targets 17% full-year sales growth
• Positive Sentiment: Commercial deal wins: Thai Airways selected AAR’s Trax and Aerostrat for a digital MRO upgrade, and AAR began an exclusive distribution agreement with TRIUMPH — these contracts support recurring SaaS/services and aftermarket parts revenue. Thai Airways selects Trax and Aerostrat AAR commences exclusive distribution agreement with TRIUMPH
• Positive Sentiment: Analyst activity is supportive — Truist raised its price target to $99 with a Buy rating and other firms/institional interest have been constructive, adding upward pressure. Truist raises AIR price target
• Neutral Sentiment: Operational cash and liquidity improved year-over-year and the balance sheet metrics (current ratio ~2.9, debt/equity ~0.82) give flexibility for M&A, but these are medium-term positives rather than immediate catalysts.
• Negative Sentiment: Insider selling: CEO John McClain Holmes III sold 23,077 shares (~$1.94M) in early January and CAO Jessica Garascia sold 4,787 shares on Jan 8 — repeated insider sales can create short-term investor caution even though executives still hold large positions. SEC Form 4 — CEO sale SEC Form 4 — CAO sale

Analyst Upgrades and Downgrades

A number of research firms have issued reports on AIR. Wall Street Zen raised AAR from a “hold” rating to a “buy” rating in a report on Saturday, January 3rd. Royal Bank Of Canada increased their price objective on AAR from $90.00 to $105.00 and gave the company an “outperform” rating in a research note on Wednesday. Truist Financial boosted their price objective on AAR from $90.00 to $99.00 and gave the stock a “buy” rating in a research note on Wednesday. Weiss Ratings reissued a “hold (c-)” rating on shares of AAR in a research note on Monday, December 29th. Finally, Jefferies Financial Group assumed coverage on shares of AAR in a report on Wednesday, December 17th. They issued a “buy” rating and a $100.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $99.25.

Insider Activity

In other AAR news, CEO John Mcclain Holmes III sold 23,077 shares of AAR stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $84.12, for a total transaction of $1,941,237.24. Following the transaction, the chief executive officer directly owned 237,064 shares of the company’s stock, valued at $19,941,823.68. The trade was a 8.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CAO Jessica A. Garascia sold 4,787 shares of the company’s stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $95.25, for a total transaction of $455,961.75. Following the sale, the chief accounting officer directly owned 29,557 shares of the company’s stock, valued at approximately $2,815,304.25. This trade represents a 13.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 66,326 shares of company stock worth $5,608,776 over the last quarter. Insiders own 3.60% of the company’s stock.

Institutional Investors Weigh In On AAR

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of AAR by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,779 shares of the aerospace company’s stock valued at $1,163,000 after purchasing an additional 904 shares during the period. Millennium Management LLC grew its position in AAR by 35.8% during the first quarter. Millennium Management LLC now owns 134,966 shares of the aerospace company’s stock worth $7,557,000 after buying an additional 35,608 shares in the last quarter. Petrus Trust Company LTA bought a new stake in shares of AAR during the first quarter valued at approximately $225,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in AAR by 4.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 97,384 shares of the aerospace company’s stock valued at $5,453,000 after buying an additional 4,288 shares during the period. Finally, Intech Investment Management LLC raised its stake in shares of AAR by 122.7% in the 1st quarter. Intech Investment Management LLC now owns 52,651 shares of the aerospace company’s stock valued at $2,948,000 after buying an additional 29,005 shares in the last quarter. 90.74% of the stock is currently owned by institutional investors.

AAR Price Performance

The company has a 50-day moving average of $83.26 and a 200 day moving average of $79.34. The firm has a market cap of $3.71 billion, a P/E ratio of 37.22 and a beta of 1.24. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.31 and a current ratio of 2.84.

About AAR

AAR Corp. (NYSE: AIR) is a global provider of aviation products and services to commercial, government and defense customers. The company offers a comprehensive portfolio of maintenance, repair and overhaul (MRO) solutions, component repair and overhaul, and engineering services designed to support a wide variety of fixed-wing and rotary aircraft. Leveraging FAA and EASA certifications, AAR delivers turnkey maintenance programs and ad hoc repair services that enhance aircraft availability and reliability.

In its Aviation Supply Chain Services segment, AAR sources, stores and distributes parts for both commercial airlines and military operators.