AAR (NYSE:AIR) Sets New 52-Week High Following Better-Than-Expected Earnings

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

The aerospace company reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.16. The firm had revenue of $795.30 million for the quarter, compared to analysts’ expectations of $760.95 million. AAR had a net margin of 3.17% and a return on equity of 12.40%. The business’s revenue was up 15.9% compared to the same quarter last year. During the same period in the prior year, the company earned $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

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on AIR shares. Weiss Ratings restated a “hold (c-)” rating on shares of AAR in a research report on Monday, December 29th. Jefferies Financial Group began 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. Truist Financial lifted their price target on shares of AAR from $90.00 to $99.00 and gave the stock a “buy” rating in a research note on Wednesday. Royal Bank Of Canada increased their price objective on shares of AAR from $90.00 to $105.00 and gave the stock an “outperform” rating in a research report on Wednesday. Finally, Zacks Research downgraded shares of AAR from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 29th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $99.25.

Insider Activity

In other news, CEO John Mcclain Holmes III sold 23,077 shares of the firm’s 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 approximately $19,941,823.68. This trade represents a 8.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Jessica A. Garascia sold 4,787 shares of the business’s stock in a transaction that occurred on Thursday, January 8th. The shares were sold at an average price of $95.25, for a total value of $455,961.75. Following the completion of the sale, the chief accounting officer owned 29,557 shares of the company’s stock, valued at $2,815,304.25. The trade was a 13.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 66,326 shares of company stock valued at $5,608,776. 3.60% of the stock is owned by corporate insiders.

Institutional Trading of AAR

Several hedge funds and other institutional investors have recently bought and sold shares of AIR. Wellington Management Group LLP grew its stake in AAR by 144.3% during the 3rd quarter. Wellington Management Group LLP now owns 1,486,775 shares of the aerospace company’s stock worth $133,319,000 after buying an additional 878,188 shares during the last quarter. UBS Group AG grew its stake in shares of AAR by 709.2% during the third quarter. UBS Group AG now owns 488,239 shares of the aerospace company’s stock worth $43,780,000 after acquiring an additional 427,906 shares during the last quarter. Franklin Resources Inc. increased its holdings in shares of AAR by 36.9% during the third quarter. Franklin Resources Inc. now owns 1,154,167 shares of the aerospace company’s stock valued at $107,752,000 after acquiring an additional 311,258 shares in the last quarter. State Street Corp increased its holdings in shares of AAR by 10.9% during the second quarter. State Street Corp now owns 1,917,821 shares of the aerospace company’s stock valued at $131,927,000 after acquiring an additional 188,406 shares in the last quarter. Finally, Principal Financial Group Inc. raised its position in shares of AAR by 35.2% in the 3rd quarter. Principal Financial Group Inc. now owns 640,707 shares of the aerospace company’s stock valued at $57,452,000 after purchasing an additional 166,903 shares during the last quarter. Institutional investors own 90.74% of the company’s stock.

AAR Stock Up 3.9%

The company has a market capitalization of $3.71 billion, a price-to-earnings 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. The business’s 50 day moving average is $83.26 and its 200 day moving average is $79.34.

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.