A Business at a Glance
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AAR CORP
AIR
$4.6B
Mkt Cap
$129.05
-0.32%
AAR CORP (AIR) has a current P/E ratio of 50.4, compared to its historical median P/E of 21.8. The stock is currently considered Expensive based on its historical valuation range.
AAR CORP (AIR) has a 5-year average return on invested capital (ROIC) of 6.4%. This is below average and may indicate limited pricing power.
AAR CORP (AIR) has a market capitalization of $5.1B. It is classified as a mid-cap stock.
AAR CORP (AIR) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.20%.
Based on historical P/E analysis, AAR CORP (AIR) appears expensive. The current P/E of 50.4 is 132% above its historical median of 21.8. The estimated fair value CAGR (P/E method) is 32.2%.
AAR CORP (AIR) operates in the Aircraft & Parts industry, within the Industrials sector.
AAR CORP (AIR) reported annual revenue of $2.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
AAR CORP. and its subsidiaries are referred to herein collectively as “AAR,” “Company,” “we,” “us,” and “our” unless the context indicates otherwise. AAR was incorporated in 1955 and we are a leading independent provider of solutions to the global aviation aftermarket. We offer a broad line of products and services to commercial and government aerospace customers. We operate globally in over 20 countries through four business segments: Parts Supply, Repair & Engineering, Integrated Solutions and Expeditionary Services. In fiscal 2025, we continued our efforts to optimize our products and services portfolio to position us for continued strong growth as well as to respond to the industry’s increased demand for aftermarket services. Double-digit sales growth in our new parts Distribution activities was a key contributor to improvements in profitability.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.1B | 2.8B | 2.3B | 2.0B | 1.8B | 1.7B |
| Net Income | 171M | 13M | 46M | 90M | 79M | 36M |
| EPS | $4.29 | $0.35 | $1.29 | $2.53 | $2.17 | $1.00 |
| Free Cash Flow | 60M | 1.4M | 14M | -6.2M | 58M | 94M |
| ROIC | 0.0% | 5.6% | 5.1% | 8.1% | 7.8% | 5.6% |
| Gross Margin | 19.0% | 19.0% | 19.1% | 18.6% | 17.2% | 16.7% |
| Debt/Equity | 0.40 | 0.80 | 0.83 | 0.25 | 0.10 | 0.14 |
| Dividends/Share | $0.00 | - | - | - | $0.00 | $0.00 |
| Operating Income | 0 | 185M | 129M | 134M | 107M | 85M |
| Operating Margin | 0.0% | 6.7% | 5.6% | 6.7% | 5.9% | 5.2% |
| ROE | 10.4% | 1.0% | 3.9% | 8.2% | 7.6% | 3.7% |
| Shares Outstanding | 40M | 36M | 36M | 36M | 36M | 36M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.7B | 1.6B | 1.5B | 1.6B | 1.7B | 2.1B | 2.1B | 1.7B | 1.8B | 2.0B | 2.3B | 2.8B | 3.1B |
| Gross Margin | 16.9% | 8.1% | 15.3% | 16.6% | 16.8% | 16.1% | 13.0% | 16.7% | 17.2% | 18.6% | 19.1% | 19.0% | 19.0% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 166M | 172M | 158M | 179M | 208M | 215M | 221M | 182M | 202M | 230M | 312M | 348M | 327M |
| EBIT | 131M | -2.2M | -18M | -4.3M | -82M | 98M | 41M | 85M | 107M | 134M | 129M | 185M | 0 |
| Op. Margin | 7.7% | -0.1% | -1.2% | -0.3% | -4.7% | 4.8% | 2.0% | 5.2% | 5.9% | 6.7% | 5.6% | 6.7% | 0.0% |
| Net Income | 71M | 9.9M | 47M | 57M | 16M | 7.5M | 4.4M | 36M | 79M | 90M | 46M | 13M | 171M |
| Net Margin | 4.2% | 0.6% | 3.1% | 3.6% | 0.9% | 0.4% | 0.2% | 2.2% | 4.3% | 4.5% | 2.0% | 0.4% | 5.5% |
| Non-Recurring | 0 | 252M | 0 | 2.6M | 65M | 74M | 5.0M | -20M | -1.7M | -700K | 1.0M | 1.0M | 1.0M |
| Returns on Capital | |||||||||||||
| ROIC | 6.0% | 0.8% | 4.9% | 5.5% | 1.4% | 5.9% | 3.6% | 5.6% | 7.8% | 8.1% | 5.1% | 5.6% | 0.0% |
| ROE | 7.4% | 1.1% | 5.5% | 6.3% | 1.7% | 0.8% | 0.5% | 3.7% | 7.6% | 8.2% | 3.9% | 1.0% | 10.4% |
| ROA | 3.3% | 0.5% | 3.2% | 3.8% | 1.0% | 0.5% | 0.2% | 2.3% | 5.0% | 4.9% | 1.7% | 0.4% | 5.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 140M | -43M | 32M | 22M | 64M | 67M | -36M | 105M | 75M | 23M | 44M | 36M | 95M |
| Free Cash Flow | 119M | -85M | -8.0M | -3.4M | 42M | 50M | -60M | 94M | 58M | -6.2M | 14M | 1.4M | 60M |
| Owner Earnings | 67M | -108M | -7.6M | -25M | 8.5M | 11M | -87M | 60M | 34M | -18M | -12M | -39M | 12M |
| CapEx | 21M | 42M | 40M | 25M | 22M | 17M | 24M | 11M | 17M | 30M | 30M | 35M | 35M |
| Maint. CapEx | 65M | 58M | 33M | 36M | 41M | 43M | 44M | 36M | 33M | 28M | 40M | 55M | 65M |
| Growth CapEx | 0 | 0 | 6.9M | 0 | 0 | 0 | 0 | 0 | 0 | 1.6M | 0 | 0 | 0 |
| D&A | 65M | 58M | 33M | 36M | 41M | 43M | 44M | 36M | 33M | 28M | 40M | 55M | 65M |
| CapEx/OCF | 19.0% | N/A | 276.9% | 115.6% | 34.2% | 25.8% | N/A | 10.7% | 23.0% | 126.6% | 68.1% | 96.1% | 36.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 12M | 12M | 10M | 10M | 10M | 11M | 11M | 100K | 100K | 0 | 0 | 0 | 0 |
| Dividend Yield | 1.2% | 1.1% | 1.3% | 1.0% | 0.7% | 0.7% | 0.9% | 0.0% | 0.0% | N/A | N/A | N/A | N/A |
| Share Buybacks | 1.0M | 152M | 19M | 20M | 13M | 10M | 4.1M | 4.1M | 42M | 50M | 5.1M | 10M | 10M |
| Buyback Yield | 0.1% | 12.5% | 2.3% | 1.7% | 0.8% | 1.0% | 0.6% | N/A | 2.4% | 2.7% | 0.2% | 0.5% | 0.2% |
| Stock-Based Comp | 8.6M | 7.4M | 6.5M | 11M | 15M | 14M | 7.3M | 9.2M | 8.2M | 14M | 15M | 20M | 18M |
| Debt Repayment | 10M | 395M | 71M | 10M | 1.0M | 25M | 460M | 470M | 25M | 172M | 175M | 20M | 20M |
| Balance Sheet | |||||||||||||
| Net Debt | 545M | 97M | 117M | 144M | 146M | 99M | -209M | 30M | -8.1M | 133M | 814M | 775M | 568M |
| Cash & Equiv. | 89M | 55M | 31M | 10M | 31M | 21M | 405M | 52M | 54M | 68M | 86M | 97M | 88M |
| Long-Term Debt | 564M | 82M | 136M | 154M | 177M | 142M | 600M | 134M | 99M | 270M | 985M | 968M | 888M |
| Debt/Equity | 0.63 | 0.18 | 0.17 | 0.17 | 0.19 | 0.16 | 0.66 | 0.14 | 0.10 | 0.25 | 0.83 | 0.80 | 0.40 |
| Interest Coverage | 4.6 | -0.1 | -2.8 | -0.8 | -10.3 | 10.3 | 4.4 | 17.0 | 44.5 | 11.0 | 3.0 | 2.5 | 2.5 |
| Equity | 1000M | 845M | 866M | 914M | 936M | 906M | 903M | 974M | 1.0B | 1.1B | 1.2B | 1.2B | 1.6B |
| Total Assets | 2.2B | 1.5B | 1.5B | 1.5B | 1.5B | 1.5B | 2.1B | 1.5B | 1.6B | 1.8B | 2.8B | 2.8B | 3.3B |
| Total Liabilities | 1.2B | 609M | 590M | 590M | 588M | -295M | 274M | -409M | -495M | -365M | 1.6B | 1.6B | 43M |
| Intangibles | 165M | 37M | 36M | 31M | 28M | 22M | 0 | 0 | 3.3M | 64M | 235M | 220M | 289M |
| Retained Earnings | 646M | 644M | 682M | 728M | 733M | 710M | 706M | 742M | 820M | 911M | 957M | 969M | 1.1B |
| Working Capital | 709M | 484M | 540M | 553M | 609M | 595M | 1.1B | 600M | 659M | 746M | 923M | 956M | 1.1B |
| Current Assets | 1.1B | 896M | 882M | 888M | 943M | 953M | 1.4B | 937M | 1.0B | 1.1B | 1.4B | 1.5B | 1.8B |
| Current Liabilities | 402M | 412M | 341M | 335M | 333M | 358M | 383M | 337M | 348M | 352M | 467M | 555M | 653M |
| Per Share Data | |||||||||||||
| EPS | 1.83 | 0.24 | 1.37 | 1.64 | 0.41 | 0.21 | 0.13 | 1.00 | 2.17 | 2.53 | 1.29 | 0.35 | 4.29 |
| Owner EPS | 1.70 | -2.63 | -0.22 | -0.72 | 0.22 | 0.31 | -2.57 | 1.67 | 0.93 | -0.51 | -0.33 | -1.09 | 0.31 |
| Book Value | 25.62 | 20.49 | 25.13 | 26.54 | 24.61 | 25.37 | 26.67 | 27.22 | 28.52 | 30.83 | 33.15 | 33.92 | 41.33 |
| Cash Flow/Share | 3.58 | -1.04 | 0.93 | 0.63 | 1.69 | 1.89 | -1.07 | 2.94 | 2.07 | 0.65 | 1.21 | 1.01 | 5.93 |
| Dividends/Share | 0.30 | 0.29 | 0.30 | 0.30 | 0.30 | 0.30 | 0.32 | 0.00 | 0.00 | N/A | N/A | N/A | 0.00 |
| Shares Out. | 39.0M | 41.3M | 34.5M | 34.5M | 38.0M | 35.7M | 33.8M | 35.8M | 36.3M | 35.7M | 35.9M | 35.7M | 39.8M |
| Valuation | |||||||||||||
| P/E Ratio | 12.6 | 119.1 | 17.3 | 20.6 | 106.3 | 141.9 | 159.5 | 41.8 | 22.9 | 20.6 | 54.9 | 179.2 | 30.1 |
| P/FCF | 7.5 | N/A | N/A | N/A | 39.2 | 21.3 | N/A | 15.9 | 31.1 | N/A | 182.8 | N/A | 85.2 |
| EV/EBIT | 221.7 | N/A | 14.3 | 15.8 | 20.6 | 11.8 | 11.9 | 17.9 | 16.8 | 14.9 | 26.0 | 16.3 | N/A |
| Price/Book | 0.9 | 1.4 | 1.0 | 1.3 | 1.8 | 1.2 | 0.8 | 1.5 | 1.7 | 1.7 | 2.1 | 1.8 | 3.1 |
| Price/Sales | 1.2 | 1.6 | 1.1 | 1.6 | 0.8 | 0.7 | 0.6 | 0.6 | 0.8 | 0.8 | 1.0 | 0.8 | 1.6 |
| FCF Yield | 13.0% | -7.0% | -1.0% | -0.3% | 2.6% | 4.7% | -8.5% | 6.3% | 3.2% | -0.3% | 0.5% | 0.1% | 1.2% |
| Market Cap | 916M | 1.2B | 825M | 1.2B | 1.7B | 1.1B | 702M | 1.5B | 1.8B | 1.9B | 2.5B | 2.2B | 5.1B |
| Avg. Price | 24.98 | 26.47 | 23.35 | 30.00 | 38.95 | 40.49 | 36.17 | 29.58 | 39.56 | 46.97 | 62.17 | 64.41 | 129.05 |
| Year-End Price | 22.99 | 28.59 | 23.71 | 33.78 | 43.58 | 29.80 | 20.74 | 41.75 | 49.66 | 52.22 | 70.80 | 62.72 | 129.05 |
AAR CORP passes 3 of 9 quality checks, indicating weak fundamentals.
AAR CORP trades at 50.4x trailing earnings, compared to its 15-year median P/E of 21.8x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 6.4% with a gross margin of 18.1%. Total shareholder yield (buybacks) is 0.2%. At current prices, the estimated annualized return to fair value is -13.3%.
AAR CORP (AIR) has a net profit margin of 0.4%. This is a modest margin.
AAR CORP (AIR) generated $1 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AAR CORP (AIR) has a debt-to-equity ratio of 0.80. This indicates moderate leverage.
AAR CORP (AIR) reported earnings per share (EPS) of $0.35 in its most recent fiscal year.
AAR CORP (AIR) has a return on equity (ROE) of 1.0%. This indicates moderate shareholder returns.
AAR CORP (AIR) has a 5-year average gross margin of 18.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 17 years of financial data for AAR CORP (AIR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AAR CORP (AIR) has a book value per share of $33.92, based on its most recent annual SEC filing.
No recent press releases.