AIR
AAR Corp.
AIR's fundamentals are strong and it looks cheap: trading at 22x earnings, below its usual 31x. Analysts expect strong earnings growth.
AIR Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Healthy | |
| Stable |
AIR's revenue, profitability and cash flow are currently healthy, and its balance sheet is stable.
AIR PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 18x | $108 | — |
| Cheap | 20x | $98.18 | -9.3% |
| Current | 22x | $108 | — |
| Fair | 31x | $151 | +40% |
| Expensive | 165x | $809 | +647% |
Historical ranges are pointers, not guarantees.
AIR's PE is in its cheap range at 22x. If earnings grow as analysts expect, today's price would be 18x next year's earnings.
AIR Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Growth | |
| Stable | |
| Limited | |
| High |
Analysts expect earnings and revenue growth for AIR, with profitability holding steady.
AIR Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $5.92 | +21% |
| Q3 2026 | $4.91 | +514% |
| Q2 2026 | $4.86 | +1289% |
| Q1 2026 | $4.53 | +$4.90 |
| Q4 2025 | $2.57 | +852% |
| Q3 2025 | $0.80 | -56% |
| Q2 2025 | $0.35 | -73% |
| Q1 2025 | -$0.37 | -122% |
| Q4 2024 | $0.27 | -86% |
AIR's earnings per share have jumped to their highest in seven years: $4.91 over the past year, up from $0.80 the year before.
AIR Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $918M | +24% |
| Q2 2026 | $928M | +23% |
| Q1 2026 | $845.1M | +25% |
| Q4 2025 | $795.3M | +16% |
| Q3 2025 | $739.6M | +12% |
| Q2 2025 | $754.5M | +15% |
| Q1 2025 | $678.2M | +20% |
| Q4 2024 | $686.1M | +26% |
AIR's revenue has grown year over year for 16 quarters in a row: $918M last quarter, up 24% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 6% | -0.3 points |
| Q2 2026 | 6.2% | N/A |
| Q1 2026 | 11% | N/A |
| Q4 2025 | 6% | N/A |
| Q3 2025 | 6.3% | N/A |
| Q2 2023 | 6.6% | -0.3 points |
| Q1 2023 | 6.8% | -0.1 points |
| Q4 2022 | 7% | +0.1 points |
AIR's operating margin was 6% last quarter, about level with the same quarter a year ago.
AIR Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $44M | +$97.6M |
| Q2 2026 | $43.3M | +4.6% |
| Q1 2026 | $66.2M | +$93.4M |
| Q4 2025 | $6.2M | -55% |
| Q3 2025 | -$53.6M | -$27.1M |
| Q2 2025 | $41.4M | +144% |
| Q1 2025 | -$27.2M | -286% |
| Q4 2024 | $13.7M | +36% |
AIR's free cash flow has turned positive again: $160M over the past year, against −$26M the year before.
AIR Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +3.9% | +1.5M shares |
| 1 year | +11% | +4M shares |
| 3 years | +14% | +4.8M shares |
| 5 years | +13% | +4.6M shares |
| Available history | +14% | +4.9M shares |
AIR has 40M diluted shares, up 11% from a year ago.
| Quarter | Spent |
|---|---|
| Q2 2024 | — |
| Q2 2023 | — |
| Q1 2023 | — |
| Q4 2022 | $28.2M |
| Q3 2022 | $21.9M |
| Q2 2022 | $22.2M |
| Q2 2020 | — |
| Q1 2020 | — |
AIR Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 2.3x | Moderate |
| Q2 2026 | 2.6x | Moderate |
| Q2 2023 | 1.2x | Healthy |
| Q1 2023 | 0.8x | Very low |
| Q4 2022 | 0.9x | Very low |
| Q3 2022 | 0.4x | Very low |
| Q2 2022 | 0.3x | Very low |
| Q1 2022 | 0.5x | Very low |
AIR's net debt is about 2.3 years of its operating earnings (EBITDA), up from less than a year a year ago.
AIR Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 45.3 | Neutral |
| Stochastic | 24.1 | Neutral |
AIR's weekly RSI is 45 (neutral) and its Stochastic is 24 (neutral).
AIR PE vs Industrials Sector
| Metric | AIR | Sector median | Relative |
|---|---|---|---|
| PE | 22x | 24x | 8.2% below |
| PE % | 31 | 58 | 27 pts below |
AIR is trading at 22x earnings, in line with the Industrials sector's median of 24x.
AIR Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $103.9 | 4.2% above |
| 20 week MA | $121.6 | 11% below |
| 50 week MA | $113.7 | 4.8% below |
| 100 week MA | $91.7 | 18% above |
| 200 week MA | $76.6 | 41% above |
AIR's trend is mixed: it's above three of its five weekly moving averages, and 41% above its 200-week average.
AIR Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $45.3 | $35.5 | -22% |
| 2021 | $35.5 | $38.5 | +8.5% |
| 2022 | $38.5 | $42.9 | +11% |
| 2023 | $42.9 | $62.4 | +45% |
| 2024 | $62.4 | $60.4 | -3.2% |
| 2025 | $60.4 | $85.1 | +41% |
| 2026 YTD | $85.1 | $108.3 | +27% |
AIR has finished higher in four of the last six years. It's up 27% so far in 2026.