AAR

AIR · NYSE · Industrials · Financials, fiscal 2017 to 2026

AIR · Last close · November 6, 2026

$109.21

AAR's revenue rose 19.0% to $3.3 billion in fiscal 2026. Its net margin was 5.7%, up from 0.5% a year earlier. Free cash flow was $62 million, up 4335.7%. The diluted share count rose 7.3%.

AAR CORP Latest fiscal year ended May 31, 2026 10-K filed July 22, 2026 · 0001104659-26-085459 Updated November 5, 2026

Revenue

$3.3B

19.0%

Net margin

5.7%

5.2 pts

Net income

$188M

1401.6%

Free cash flow

$62M

4335.7%

Return on capital

10.6%

7.8 pts

Market cap

$4.4B

Nov 6 close

P/E

22.4x

On $4.88 EPS, 4 qtrs

Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What AAR does

AAR provides products and services to airlines, militaries and other aviation customers after aircraft are built. It operates in more than twenty countries and reports four segments.

Parts Supply distributes new parts and sells used serviceable material, such as engine and airframe parts. Repair, Engineering and Software overhauls airframes and components and sells maintenance software. Government Solutions manages fleets and supply programs for the U.S. government and foreign governments, and builds pallets, shelters and containers for the military. Legacy Commercial Programs runs component pool and repair programs for airlines; AAR announced it plans to leave this business, which it expects to take about three to four years.

AAR grew through acquisitions in its latest fiscal year, including a distributor of electronic components, a heavy aircraft maintenance provider with hangars in North Carolina and Florida, an aircraft interiors engineering firm and a maintenance-planning software company. It says it competes in highly competitive markets.

Its biggest risks, as it describes them

Downturns in commercial aviation can cut demand for its parts and services.
U.S. government contracts may not continue at current levels.
Cost overruns and losses on long-term contracts.
Acquisitions may not deliver the benefits expected and may strain management.
Airlines may stop outsourcing maintenance, which its repair business depends on.

From AAR's annual report on Form 10-K, filed July 22, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2017 to 2026, earnings per share grew 12.8% a year and net income 14.3% a year, as new shares raised the share count by 12% and diluted each share's earnings.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	54	68	86	96	84
Debt incl. finance leases	99	270	985	968	894
Net debt (negative means net cash)	45	201	900	872	810
Net debt to EBITDA	0.3x	1.2x	6.3x	5.1x	2.1x
Debt to equity	0.1x	0.2x	0.8x	0.8x	0.5x
Interest coverage	44.9x	10.9x	2.4x	1.5x	4.4x
Current ratio	2.9x	3.1x	3.0x	2.7x	2.8x
Quick ratio	1.3x	1.5x	1.4x	1.3x	1.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project AAR's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open AAR's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought AAR shares on the open market, and 7 insiders sold $23.9 million, $1.9 million of it under trading plans set up in advance.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 29, 2026	Ellen M. LordDirector	Sold	4,341	$104.64	$454,238	Form 4
Mar 27, 2026	John McClain Holmes IIIChairman, President & CEO, Director	Sold	26,175	$107.60	$2.8 million	Form 4
Mar 26, 2026	John McClain Holmes IIIChairman, President & CEO, Director	Sold	60,000	$112.41	$6.7 million	Form 4
Mar 26, 2026	Jessica A. GarasciaSenior VP, GC, CAO & Secretary	Sold	6,284	$112.20	$705,065	Form 4
Mar 26, 2026	Billy NolenDirector	Sold	1,562	$111.00	$173,382	Form 4
Feb 4, 2026	Sarah Louise FlanaganInterim CFO VP Fin Ops	Sold	10,750	$108.56	$1.2 million	Form 4
Feb 3, 2026	John McClain Holmes IIIChairman, President & CEO, Director	Sold	10,000	$108.44	$1.1 million	Form 4
Jan 22, 2026	Eric PachapaVP-CAO & Controller	Sold	4,983	$105.94	$527,899	Form 4
Jan 14, 2026	John McClain Holmes IIIChairman, President & CEO, Director	Sold	9,947	$99.41	$988,831	Form 4
Jan 13, 2026	John McClain Holmes IIIChairman, President & CEO, Director	Sold	16,802	$98.93	$1.7 million	Form 4
Jan 12, 2026	John McClain Holmes IIIChairman, President & CEO, Director	Sold	30,000	$97.50	$2.9 million	Form 4
Jan 9, 2026	Christopher A. JessupSenior Vice President-CCO	Sold	23,621	$97.05	$2.3 million	Form 4

The latest 12 of 14 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY24	FY25	FY26
Piotroski F-score	4 of 9	4 of 9	6 of 9
Rule of 40	17.1%	20.0%	20.9%
Altman Z''	4.35	4.36	5.05
Accruals ratio	0.1%	−0.8%	2.9%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY24	FY25	FY26
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Fail	Pass	Fail
Debt fell relative to assets	Fail	Pass	Pass
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Fail	Fail
Revenue rose relative to assets	Pass	Fail	Pass
F-score	4 of 9	4 of 9	6 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put AAR side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
AAR	FY26	19.0%	—	1.9%	10.6%	2.1x	6
BWX Technologies	FY25	18.3%	12.7%	9.2%	13.9%	3.0x	7	Compare
Curtiss-Wright	FY25	12.1%	18.1%	15.8%	15.9%	0.8x	8	Compare
Leonardo DRS	FY25	12.8%	9.5%	6.2%	11.6%	−0.4x	7	Compare
Moog	FY25	7.0%	11.7%	3.3%	11.7%	1.8x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	1,591	1,748	2,052	2,072	1,652	1,820	1,990	2,319	2,780	3,308
Revenue growth	4.3%	9.9%	17.4%	1.0%	−20.3%	10.2%	9.4%	16.5%	19.9%	19.0%
Gross profit	263	294	330	269	276	313	370	442	528	622
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	—	—	—	—	—	—	—	—	—	—
Net income	56	16	8	4	36	79	90	46	12	188
Diluted EPS (US$)	1.64	0.41	0.21	0.13	1.00	2.17	2.53	1.29	0.35	4.86
Diluted shares (millions)	34	35	35	35	35	36	35	35	36	38
Cash flow
Cash from operations	22	64	67	−36	105	75	23	44	36	99
Capital expenditure	25	22	17	24	11	17	30	30	35	37
Free cash flow	−3	42	50	−60	94	58	−6	14	1	62
Dividends paid	10	10	10	11	0	0	0	0	0	0
Share buybacks	20	13	10	4	0	42	50	5	10	0
Acquisitions	12	23	2	0	0	0	103	723	2	259
Stock-based compensation	11	15	14	7	9	8	14	15	20	18
Balance sheet at fiscal year end
Cash and short-term investments	10	31	21	405	52	54	68	86	96	84
Debt incl. finance leases	154	177	142	600	134	99	270	985	968	894
Total assets	1,504	1,525	1,517	2,079	1,540	1,574	1,833	2,770	2,845	3,356
Total liabilities	590	588	611	1,176	565	539	734	1,580	1,633	1,652
Shareholders' equity	914	936	906	903	974	1,034	1,099	1,190	1,212	1,704
Margins and ratios
Gross margin	16.6%	16.8%	16.1%	13.0%	16.7%	17.2%	18.6%	19.1%	19.0%	18.8%
Operating margin	—	—	—	—	—	—	—	—	—	—
Net margin	3.5%	0.9%	0.4%	0.2%	2.2%	4.3%	4.5%	2.0%	0.5%	5.7%
Free cash flow margin	−0.2%	2.4%	2.4%	−2.9%	5.7%	3.2%	−0.3%	0.6%	0.1%	1.9%
Rule of 40 (growth + FCF margin)	4.1%	12.3%	19.8%	−1.9%	−14.6%	13.3%	9.1%	17.1%	20.0%	20.9%
Return on capital	5.9%	2.1%	1.3%	0.9%	3.6%	7.5%	8.3%	4.8%	2.7%	10.6%
Return on equity	6.3%	1.7%	0.8%	0.5%	3.8%	7.8%	8.5%	4.0%	1.0%	12.9%
Return on assets	3.8%	1.0%	0.5%	0.2%	2.0%	5.1%	5.3%	2.0%	0.5%	6.0%
Net debt to EBITDA	1.2x	2.2x	1.9x	3.1x	0.9x	0.3x	1.2x	6.3x	5.1x	2.1x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: AAR's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with AAR.