AAR Corp. (AIR)
NYSE:AIR
Earnings Data
Report Date
Jul 21, 2026After Close (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
1.33Last Year’s EPS
1.16Same Quarter Last Year
Strong Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong, broad-based revenue and profitability growth driven by parts distribution, favorable government demand, accretive M&A (ADI), and Trax software momentum. Near-term lowlights center on margin dilution and operational work required from the HAECO Americas integration, plus facility transitions and geopolitical uncertainty. Management provided improved guidance and clear timelines for integration-driven margin recovery, and cash flow/leverage metrics remained strong.Company Guidance
Strong Top-Line Growth
Total sales grew 25% year-over-year to $845 million, including 14% organic adjusted sales growth. Q3 results drove full-year sales growth guidance to approximately 19% with organic sales growth expected around 12%.
Profitability and EPS Expansion
Adjusted operating income increased 31% to $86.2 million and adjusted EBITDA increased 26% to $102.1 million. Adjusted diluted EPS rose 26% to $1.25 per share. Adjusted operating margin improved 50 basis points to 10.2% and adjusted EBITDA margin ticked up to 12.1% from 12.0%.
Parts Supply Outperformance
Parts supply sales grew 45% to $392.5 million. New parts distribution grew 62% in total and 36% organically (excluding ADI). Parts segment adjusted EBITDA rose 59% to $59 million and adjusted EBITDA margin expanded 130 basis points to 14.9%.
Government Sales and Defense Momentum
Government sales rose 19% year-over-year and government distribution delivered 55% organic growth. Government customers represented roughly 27%–30% of sales, providing revenue diversification and benefit from higher readiness spending.
ADAS/ADI Acquisition Accretive
The ADI acquisition outpaced expectations for a second consecutive quarter and was accretive to margins in the period, contributing to parts segment margin expansion.
Trax Software Momentum and Recurring Revenue
Trax delivered a record quarter, expanded recurring revenue, and is ramping with Delta (deployed to ~2,000 users with an expected increase to ~6,000 users). Trax revenue has grown from ~$25 million at acquisition to north of $50 million, with a stated path to ~$100 million.
Repair & Engineering Expansion Progress
Oklahoma City hangar expansion completed and began aircraft inductions in early March, with first revenues expected in Q4. Component MRO won expanded scopes of work from major U.S. and international carriers.
Strong Cash Generation and Balance Sheet Discipline
Generated $75 million of cash from operating activities in the quarter. Net leverage declined to 2.17x net debt to adjusted EBITDA, inside the target range of 2.0x–2.5x, supporting strategic flexibility and disciplined capital allocation.
Large Government Contract Win
Expeditionary Services awarded a multiyear government contract valued at $450 million to provide specialized talent to forward deployed military units, supporting government revenue visibility.
Improved Outlook and Investor Engagement
Q4 guidance improved versus prior implication: total adjusted sales growth of 19%–21%, organic adjusted sales growth of 6%–8%, and Q4 operating margin expected at 10.2%–10.5%. Company announced an Investor Day to present strategic vision.
AIR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
AIR Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 24, 2026 | $107.81 | $118.52 | +9.93% |
Jan 06, 2026 | $89.46 | $91.34 | +2.10% |
Sep 23, 2025 | $78.35 | $81.62 | +4.17% |
Jul 16, 2025 | $74.88 | $85.10 | +13.65% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does AAR Corp. (AIR) report earnings?
AAR Corp. (AIR) is schdueled to report earning on Jul 21, 2026, After Close (Confirmed).
What is AAR Corp. (AIR) earnings time?
AAR Corp. (AIR) earnings time is at Jul 21, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is AIR EPS forecast?
AIR EPS forecast for the fiscal quarter 2026 (Q4) is 1.33.