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AAR Corp. (AIR)
NYSE:AIR
Earnings Data
Report Date
Mar 24, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
1.16Last Year’s EPS
0.99Same Quarter Last Year
Strong Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call portrayed robust top-line growth, strong margin expansion overall, successful strategic acquisitions, improved balance-sheet metrics (leverage within target), and accelerating momentum in high-growth new parts distribution and software (Trax). Near-term headwinds are principally related to integration and restructuring of recently acquired heavy-maintenance assets (HAECO), which will be margin-dilutive for 12–18 months and require reallocation of work (including exiting Indianapolis). Management provided concrete guidance for continued growth and expects margin recovery as synergies are realized. On balance, positive operational and financial momentum outweighs the integration-related lowlights.Company Guidance
Strong Top-Line Growth
Total sales grew 16% year over year to $795 million, including 12% organic growth. Company expects Q3 total sales growth of 20%–22% (8%–11% organic) and full fiscal year total sales growth approaching 17% (organic ~11%).
Parts Supply Momentum — New Parts Distribution Surge
Parts Supply sales increased 29% year over year to $354 million. New parts distribution activity grew 32% (organic, excluding ADI). Parts Supply adjusted EBITDA rose 37% to $46.5 million and adjusted EBITDA margin improved to 13.2% from 12.4%.
Profitability and EPS Expansion
Adjusted EBITDA increased 23% to $96.5 million with adjusted EBITDA margin of 12.1% (up from 11.4%). Adjusted operating income increased 28% to $81.2 million; adjusted operating margin improved 100 basis points to 10.2% (from 9.2%). Adjusted diluted EPS rose 31% to $1.18 from $0.90.
Successful Strategic M&A Activity
Completed acquisitions of ADI (Sept, $108M; ~ $150M LTM sales, 400 employees) and HAYCO Americas (Nov, $77M); announced ART acquisition for $35M expected to close in fiscal Q4. Management says ADI has performed above expectations and integration is progressing.
HAECO Acquisition Brings Large Contract Awards and Capacity
As part of the HAECO Americas integration, AAR announced approximately $850 million of new contract awards over five years and expects to add ~40% additional heavy-maintenance capacity to its network once integration is complete.
Repair & Engineering Revenue and Capacity Expansion
Repair & Engineering sales grew 7% year over year to $245 million. Ongoing Oklahoma City and Miami heavy-maintenance expansions expected to come online in calendar 2026, adding approximately $60 million in annual revenue.
Integrated Solutions Strong Margin Improvement
Integrated Solutions sales increased 8% to $170 million. Adjusted EBITDA jumped 50% to $18.5 million and adjusted operating income rose 82% to $15.1 million; operating margin improved from 5.1% to 8.6%, driven by favorable mix and government program milestones.
Balance Sheet and Capital Allocation Progress
Net debt leverage decreased from 2.82x to 2.49x, reaching the company’s long-term target range of 2.0–2.5x. Management expects to be cash-positive in Q3 and modestly lower interest expense sequentially; capital allocation priorities remain organic growth and targeted M&A.
Commercial Momentum for Trax and Distribution Renewals
Trax selected by Thai Airways for EMRO suite; partnership announced with Arrow Exchange to enhance supply-network integration. Company renewed key exclusive distribution contracts with Collins Aerospace and Arkwin Industries. Trax upgrade cycle ~30%–35% through customer upgrades with a goal to complete bulk by 2028.
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 |
|---|---|---|---|
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% |
Mar 27, 2025 | $68.35 | $57.14 | -16.40% |
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 Mar 24, 2026, After Close (Confirmed).
What is AAR Corp. (AIR) earnings time?
AAR Corp. (AIR) earnings time is at Mar 24, 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 (Q3) is 1.16.