At a glance
AAR Corp is worth $4.05B, about 21 times its fiscal 2026 earnings. Revenue grew 19.0% to $3.31B in fiscal 2026, with 5.7% kept as profit; over 5 years it has grown 14.9% a year. It pays no dividend; it spent $107.7M buying back its shares over FY2022–FY2026. The stock returned +19.2% over the past year with dividends reinvested and +23.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 71.8% in the 2020 crash (S&P 500: 33.7%) and 33.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 24 months and 5 months after the lows.
The business in plain English
AAR Corp, incorporated in 1955, sells parts, repairs and software to the aviation aftermarket: the work of keeping aircraft flying after they leave the factory. It operates in over 20 countries, serving airlines, repair shops, aircraft makers and governments. In the fiscal year ended May 31, 2026, sales rose 19% to $3.31 billion. Commercial customers supplied 72.1% of sales and government customers the rest.
Parts Supply, the largest segment at 45% of sales, distributes new parts for more than 20 manufacturers, in most cases as their exclusive distributor in a market. It also purchases used aircraft and engines and sells their refurbished parts. Repair, Engineering, and Software, about a third of sales, does maintenance, repair and overhaul (MRO) on airframes and components at eight airframe sites and five component shops. It also sells maintenance software such as Trax. Government Solutions, 15% of sales, manages customer-owned aircraft and supply chains for the U.S. Department of War, the State Department and foreign governments. It also makes pallets, shelters and containers.
Legacy Commercial Programs, 7% of sales, supplies airlines with pooled parts and repairs priced by flight hour. AAR plans to exit it over three to four years because its large parts pools no longer earn target returns. In fiscal 2026, AAR also made four acquisitions. The largest was ADI, a distributor of electronic parts, for $137.1 million.
Price history
The interactive chart needs JavaScript.
AIR +19.2% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Product | $2.14B | 64.6% |
| Service | $1.17B | 35.4% |
By business segment
| Parts Supply | $1.49B | 45% |
| Repair Engineering And Software Segment | $1.08B | 32.7% |
| Government Solutions Segment | $502.3M | 15.2% |
| Legacy Commercial Programs Segment | $237.2M | 7.2% |
Latest results
- In Q1 FY2027 (ended Aug 31, 2026), revenue was $918.0M, up 24.1% from a year earlier, and net income was $40.1M (+16.6%).
- For fiscal 2026, revenue was $3.31B (+19.0% year over year; +14.9% a year from FY2021 to FY2026) with a 5.7% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +14.9% good |
|---|---|
| Free cash flow margin | 1.9% watch |
| Return on equity (FY2026) | 11% watch |
| Return on assets (FY2026) | 5.6% watch |
| Net cash (cash minus debt) | $-775.1M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.65B | $35.8M | $93.9M |
| FY2022 | $1.82B | $78.7M | $57.9M |
| FY2023 | $1.99B | $90.2M | $-6.2M |
| FY2024 | $2.32B | $46.3M | $13.9M |
| FY2025 | $2.78B | $12.5M | $1.4M |
| FY2026 | $3.31B | $187.7M | $62.1M |
Valuation snapshot
| Market value | $4.05B |
|---|---|
| P/E ratio | 20.7 |
| Dividend yield | 0% |
Rank among 1514 US companies
Market value at each year end
AAR’s market value went from $1.13B at the end of 2016 to $4.05B on Oct 28, 2026, about 3.6 times as much; since the end of 2025 it is up 24%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.05B | +23.7% |
| 2025 | $3.28B | +48.9% |
| 2024 | $2.20B | -0.7% |
| 2023 | $2.22B | +43.2% |
| 2022 | $1.55B | +11.8% |
| 2021 | $1.38B | +8.3% |
| 2020 | $1.28B | -18.8% |
| 2019 | $1.57B | +20.2% |
| 2018 | $1.31B | -4.0% |
| 2017 | $1.36B | +20.3% |
| 2016 | $1.13B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| AIR price data to Oct 28, 2026 | +21.8% | +19.2% | +21.0% | +23.2% | +12.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +21.8% |
| 2025 | +35.1% |
| 2024 | -1.8% |
| 2023 | +39.0% |
| 2022 | +15.0% |
| 2021 | +7.8% |
| 2020 | -19.2% |
| 2019 | +21.8% |
| 2018 | -4.3% |
| 2017 | +19.9% |
| 2016 | +27.3% |
| 2015 | -4.2% |
| 2014 | +0.4% |
| 2013 | +52.1% |
| 2012 | -0.6% |
| 2011 | -29.5% |
| 2010 | +19.5% |
| 2009 | +24.8% |
| 2008 | -51.6% |
| 2007 | +30.3% |
| 2006 | +21.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 67.9% over that stretch · deepest drop along the way 73.1%, back to its old high 96.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 70.8% over that stretch · deepest drop along the way 71.8%, back to its old high 24 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 4.2% over that stretch · deepest drop along the way 33.2%, back to its old high 4.6 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 3 sales ($4.3M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 26, 2026 | John McClain III Holmes Chairman, President & CEO, Director | sell | $3.4M |
| Oct 29, 2026 | Ellen M. Lord Director | sell | $454K |
| Oct 20, 2026 | Ellen M. Lord Director | sell | $425K |
Who owns it
Large shareholders (13G filings)
| STATE STREET CORPORATION | 6.5% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.4% | Mar 31, 2026 |
| Vanguard Capital Management | 5% | Mar 31, 2026 |
| Dimensional Fund Advisors LP | 4.9% | Mar 31, 2026 |
ETFs with the most weight in AIR
| OASC OneAscent Small Cap Core ETF | 0.44% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.43% |
| ITA iShares U.S. Aerospace & Defense ETF | 0.36% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.35% |
| IJS iShares S&P Small-Cap 600 Value ETF | 0.32% |
| SLYV SPDR S&P 600 Small Cap Value ETF | 0.32% |
| PPA Invesco Aerospace & Defense ETF | 0.28% |
| TPSC Timothy Plan US Small Cap Core ETF | 0.21% |
What could go wrong
- Heavy reliance on airline spending. Commercial customers supplied 72.1% of fiscal 2026 sales. Commercial aviation is cyclical. Fuel spikes, wars, recessions or pandemics can cut demand and leave AAR with unpaid bills, as happened in 2020 and 2021.
- Government contracts could shrink or end. Government Solutions serves the U.S. Department of War, the State Department and foreign governments. Contracts may not continue at the same level, and breaking federal contracting rules could bring penalties or lost business.
- Aircraft parts can lose value. AAR purchases aircraft, engines and rotable parts (components that are repaired and reused many times). Prices move up and down, so it may not recover its costs. This includes selling Legacy Commercial Programs assets during the planned wind-down.
- Repair work depends on outsourcing and labor. The repair business relies on airlines continuing to outsource maintenance and on having enough skilled technicians. A shift back to in-house work, staff shortages or work stoppages could cut sales and strain its hangar network.
- Absorbing a burst of acquisitions. AAR made more acquisitions in fiscal 2026 than in any earlier year. The four deals included ADI for $137.1 million and HAECO Americas for $78.0 million. Acquired businesses may not deliver the benefits AAR expects.
- Debt and loan restrictions. As of August 31, 2026, AAR had $879.6 million of debt and $104.5 million of cash. Loan terms limit its flexibility, and new financing may not be available on acceptable terms.
Recent events
- Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Investor presentation or announcement
- Major agreement signed; Unregistered sale of shares; Investor presentation or announcement
- Quarterly results released
- Executive or board change; Shareholder vote results
- Executive or board change
- Quarterly results released
- Investor presentation or announcement
- Investor presentation or announcement; Other company announcement
- Quarterly results released
For income and retirement investors
AAR pays no dividend. Its dividend yield was 0% as of October 28, 2026, and it paid no dividends from fiscal 2022 through fiscal 2026. It spent $107.7 million on share buybacks over those five years. Even so, shares outstanding rose 13.3% between November 2021 and August 2026. Free cash flow (cash left after running and investing in the business) was $62.1 million in fiscal 2026, well below net income of $187.7 million. For an income investor, any cash from AAR would have to come from selling shares.
The stock has fallen hard in market slumps. It dropped 73.1% around the 2008 financial crisis and took about 97 months to recover. It fell 71.8% in the 2020 COVID crash and took 24 months to recover. In the 2022 bear market it fell 33.2% and recovered in about five months. In the year to October 28, 2026, its deepest drop from a peak was 38%. Single stocks carry more risk than diversified funds.
Questions investors ask
How does AAR Corp make money?
AAR makes money by selling aircraft parts, maintenance work and software to airlines, repair shops, aircraft makers and governments. In the fiscal year ended May 31, 2026, sales were $3.31 billion. Parts Supply brought in 45%, Repair, Engineering, and Software about a third, and Government Solutions 15%. Legacy Commercial Programs, which AAR plans to exit, brought in 7%. Products made up 64.6% of sales and services 35.4%. Gross margin (the share of sales left after direct costs) was 18.8%, and net income was $187.7 million.
Does AAR pay a dividend?
No. AAR's dividend yield was 0% as of October 28, 2026, and the company paid no dividends from fiscal 2022 through fiscal 2026. It spent $107.7 million on share buybacks over those years, but its share count still grew 13.3% between November 2021 and August 2026. Investors who want regular income would get none from AAR. Any cash would have to come from selling shares.
Is AAR a defense stock?
Partly, but most of its business is commercial. Commercial customers, mainly airlines and related parts makers, supplied 72.1% of AAR's sales in the fiscal year ended May 31, 2026. Government customers made up the rest, and government sales grew 14.9% that year. The Government Solutions segment, 15% of sales, manages aircraft and supply chains for the U.S. Department of War, the State Department and foreign governments. AAR is also held by aerospace and defense funds such as the iShares U.S. Aerospace & Defense ETF (ITA).
Why is AAR exiting its Legacy Commercial Programs business?
AAR says the business needs large pools of parts and no longer meets its return-on-capital targets. The segment gives airlines access to pooled components and repairs, priced by flight hour, and distributes consumable supplies. It made up 7% of sales in the fiscal year ended May 31, 2026. AAR announced the exit in the fourth quarter of that year. It expects the wind-down to take three to four years as customer contracts end and its reusable parts are sold.
How has AAR stock performed?
Well over longer periods, but with big swings. As of October 28, 2026, the share price had gained an average of 23.2% a year over five years and 12.6% a year over ten years. It was up 21.8% year to date but down 28.4% over the prior three months. Beta measures how much a stock moves compared with the market. AAR's one-year beta was 1.56, so it swung about 1.6 times as much as the broad market.