AAR Corp

AAR Corp reported record fiscal first-quarter sales of $918 million, up 24% year over year including 11% organic growth, with adjusted diluted EPS of $1.49 per share, up 38%, and adjusted EBITDA margin expanding 100 basis points to 12.7%. Alongside the results, the company agreed to acquire a 65% controlling interest in MRO Holdings at an implied enterprise value of approximately $4 billion, a 10.7 times adjusted EBITDA multiple net of tax benefit synergies. MRO Holdings is expected to generate approximately $1 billion in adjusted sales, $285 million in adjusted EBITDA at a 27% margin, and more than $200 million in adjusted operating cash flow in calendar 2026. The combined company would have roughly $4.3 billion in annual sales and nearly $700 million in adjusted EBITDA, lifting the adjusted EBITDA margin to 16% before synergies from about 12%, with a new medium-term target of 19% to 20% over the next three to four years. AAR expects approximately $75 million in run rate cost synergies within three to four years, funded by about $1 billion of AAR equity, including roughly $780 million to MRO Holdings shareholders at $135 per share and about $230 million via a PIPE, plus approximately $2.1 billion of new debt, taking net leverage to about 3.6 times at close before declining toward its 2 to 2.5 times target range.

AstraZeneca agreed to make a $2 billion strategic equity investment in Summit Therapeutics, sending the biopharmaceutical company's shares up 17.1% in premarket trading. The investment supports a collaboration combining Summit's flagship bispecific antibody, ivonescimab, with AstraZeneca's oncology pipeline, and AstraZeneca will acquire convertible preferred shares at a price equivalent to $18.36 per common share, a 10% premium to Summit's five-day volume-weighted average price. Fair Isaac tumbled 15% after the Federal Housing Finance Agency announced changes to mortgage pricing that will introduce competition to FICO's longstanding role in the mortgage credit-scoring market; FHFA Director Bill Pulte said Fannie Mae and Freddie Mac will consolidate their separate pricing matrices into a single unified grid that will incorporate VantageScore alongside the traditional FICO Classic score. CarMax rose 3.7% after reporting fiscal second-quarter earnings of $1.16 per share, beating analyst expectations of 68 cents, with revenue of $7.88 billion topping forecasts of about $7.06 billion. AAR Corp. surged 6.9% after announcing an agreement to acquire a 65% controlling interest in MRO Holdings at an implied enterprise value of $4 billion, alongside adjusted diluted EPS of $1.49 and revenue of $918 million that beat expectations. Netflix rose 1.4% after Deutsche Bank upgraded the streaming giant to Buy from Hold with a $95 price target, while AbCellera Biologics gained 2.1% on a JPMorgan Overweight initiation with a $17 price target and Q32 Bio rose 9.4% ahead of a key clinical data presentation at the European Academy of Dermatology and Venereology Congress in Vienna beginning Sept. 30.

AAR Corp. completed its $35 million acquisition of Aircraft Reconfig Technologies in April 2026, adding FAA Organization Designation Authorization that lets the company issue supplemental type certificates and Parts Manufacturer Approval in-house. The deal strengthens AAR's aircraft interior design, reconfiguration, and engineering capabilities, reducing reliance on third parties and giving it greater control over certification. The company says the expanded capabilities position it to capture a larger share of aircraft modification and aftermarket spending as airlines focus on maintaining and upgrading existing aircraft. AAR shares have risen 94% in the past year, and the stock carries a Zacks Rank of 1, or Strong Buy.

AAR Corp shares jumped 4.9% after Truist Securities raised its price target on the stock to $145 from $128 while maintaining a Buy rating. The upgrade follows AAR's strong quarterly earnings report on July 21st, where the company posted earnings per share of $1.53, beating the consensus estimate of $1.38, and revenue of $928 million, surpassing analyst expectations of $893.03 million. The shares closed at $136.86, up 6% from the previous close.

AAR Corp. reported higher sales and net income for its fourth quarter and full-year 2026, completed a US$107.54 million buyback of 2,429,700 shares, and filed an omnibus shelf registration covering multiple types of securities. The buyback fully utilized the company's 2021 repurchase program, while the shelf registration provides fresh financing flexibility. The stronger quarterly and annual earnings performance supports the near-term investment narrative that AAR's mix of MRO, parts distribution, and software can remain relevant as airlines and governments demand reliable, cost-efficient support. However, the biggest risk remains how quickly OEMs and new technologies could squeeze independent providers like AAR, a factor not materially changed by this news.

AAR Corp. expects first-quarter fiscal 2027 total sales growth of 21% to 23% excluding its legacy commercial programs segment, while targeting an adjusted EBITDA margin of 12.25% to 12.75% on the same basis. Chairman, President and CEO John Holmes said the company is guiding on metrics excluding legacy commercial programs because that more accurately reflects how management is running the ongoing performance of the business, and the legacy commercial programs business is expected to wind down ratably over the next three to four years. For the full fiscal year 2027, AAR anticipates another year of strong growth with total sales, excluding legacy commercial programs, rising in the low double digits to low teens. The outlook follows a record fourth quarter of fiscal 2026 in which total sales reached $928 million, up 26% year-over-year including 13% organic growth, and adjusted diluted earnings per share rose 32% to $1.53. Adjusted EBITDA increased 27% to $116 million, with the margin edging up to 12.5% from 12.4% a year earlier.

AAR CORP reported fiscal second-quarter 2026 revenue of $928 million, exceeding analyst estimates of $893.2 million and representing 26.1% year-on-year growth. Adjusted earnings per share came in at $1.53, beating the consensus estimate of $1.38 by 10.5%, while adjusted EBITDA of $115.8 million topped forecasts of $111.2 million. The company issued third-quarter revenue guidance of $902.3 million at the midpoint, which was 4.4% above analyst expectations of $864.6 million. Despite the beats, shares fell 4.8% to $135.35 in immediate after-market trading.

Zacks Investment Research identifies AAR Corp. as a compelling growth stock, citing three key factors. The airplane maintenance company's earnings per share are projected to grow 18.4% this year, outpacing the industry average of 14.8%. AAR's sales-to-total-assets ratio stands at 1.02, well above the industry average of 0.65, indicating efficient asset utilization, while sales are expected to rise 12.9% versus the industry's 9.3%. The Zacks Consensus Estimate for current-year earnings has climbed 3.5% over the past month, supporting a Zacks Rank #1 (Strong Buy) and a Growth Score of B.

AAR has surged 69.2% year-to-date, far outpacing the Aerospace sector's average return of 8.5%. The company holds a Zacks Rank of 2, or Buy, and its full-year earnings estimate has risen 1% over the past quarter. Within the Aerospace - Defense Equipment industry, which has gained 18% this year, AAR's performance stands out. Another sector member, RTX, has returned 8.6% year-to-date and also carries a Zacks Rank of 2, with its earnings estimate up 1.5% in three months.

AAR Corp. hit a new 52-week high after its latest quarterly results beat analyst estimates, continuing a pattern of positive surprises that has led to upgraded earnings forecasts. The company also announced a preferred distribution agreement with Woodward for LEAP, GEnx, and CF34 engine consumables, expanding its parts distribution footprint. Analysts project AAR will reach $4.1 billion in revenue and $228.5 million in earnings by 2029, though some fair value estimates suggest an 8% downside from the current price. The stock's performance reinforces confidence in its execution, but its fortunes remain tied to commercial aviation cycles.

Zacks Equity Research identifies HEICO Corp., Axon Enterprise, and AAR Corp. as key aerospace-defense equipment stocks poised to benefit from long-term air travel growth and strategic acquisitions. The Zacks Aerospace-Defense Equipment industry carries a Zacks Industry Rank of 55, placing it in the top 22% of more than 247 industries, and has collectively surged 21% over the past year. HEICO, a Zacks Rank #1 Strong Buy, is expected to see fiscal 2026 sales and earnings grow 15.8% and 18% year over year, respectively, aided by its Exxelia subsidiary's acquisition of 90% of CalRamic Technologies. Axon Enterprise, also a Zacks Rank #1, is projected to achieve 31% sales growth and 18.1% earnings growth in 2026, driven by demand for its Dedrone counter-drone platform. AAR Corp., a Zacks Rank #2 Buy, anticipates fiscal 2026 sales and earnings increases of 17.7% and 27.1%, respectively, as it winds down its Legacy Commercial Programs segment to focus on higher-margin businesses.

The 15 aerospace stocks tracked by StockStory reported a very strong first quarter, with aggregate revenues beating analysts' consensus estimates by 1.9%. AAR led with revenues of $845.1 million, up 25.3% year on year and exceeding expectations by 4.1%, while Rocket Lab delivered the fastest revenue growth among its peers at $200.3 million, a 63.5% increase that beat estimates by 4.9%. Woodward reported $1.09 billion in revenues, up 23.4% and surpassing expectations by 8.5%, and Curtiss-Wright posted $913.7 million, up 13.4% and beating by 5.1%. AerSale was the weakest performer, with revenues of $70.61 million falling short of analysts' expectations by 18.9%. Next quarter's revenue guidance for the group came in 0.7% below estimates, but aerospace stocks have performed well, with share prices up 13.2% on average since the latest earnings results.

AAR Corp. has seen its stock surge 94.1% over the past year, far outpacing the aerospace industry's 22.8% gain, driven by strong demand in the Maintenance, Repair and Overhaul market. The Zacks Consensus Estimate for fiscal 2026 earnings per share is $4.97, representing year-over-year growth of 27.1%, while sales are projected at $3.27 billion, up 17.7%. The company's Repair & Engineering segment recorded a 22.9% sales improvement in the fiscal third quarter, supported by airframe MRO activities, and it is expanding hangar capacity in Miami and Oklahoma City. AAR's total debt to capital stands at 35.09%, below the industry average of 41.35%, and its current ratio is 2.70, indicating solid liquidity. The company delivered an average earnings surprise of 11.30% over the last four quarters.