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Here's Why You Should Add AIR Stock to Your Portfolio Right Now
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Key Takeaways
AAR Corp. benefits from rising aircraft usage, boosting demand for its aerospace MRO services.
AIR has solid liquidity and a lower debt-to-capital ratio than the industry, supporting stability.
AIR is expanding MRO facilities to raise capacity by 15% and add about $60M in annual sales.
AAR Corp.’s (AIR - Free Report) robust presence in the aerospace Maintenance, Repair and Overhaul (“MRO”) market, solid liquidity and low debt are strong upsides. Given its growth prospects, AIR makes for a solid investment option in the Aerospace sector.
Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History of AIR
The Zacks Consensus Estimate for fiscal 2026 earnings per share is pegged at $4.92, which indicates year-over-year growth of 25.8%.
The consensus estimate for fiscal 2026 sales is pegged at $3.20 billion, which indicates year-over-year growth of 15.2%.
It delivered an average earnings surprise of 11.26% in the last four quarters.
AAR Stock’s Debt Position
Currently, the company’s total debt to capital is 37.90%, better than the industry’s average of 43.68%.
AIR’s times interest earned (TIE) ratio at the end of the second quarter of fiscal 2026 was 2.75. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
AIR’s Liquidity
AIR’s current ratio at the end of the fiscal second quarter was 2.85. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.
AIR’s Focus on the MRO Market
The commercial aerospace industry has been seeing a steady rise in aircraft usage, which has increased the need for aircraft maintenance. In the fiscal second quarter, the company’s Repair & Engineering segment recorded a sales improvement of 6.9%, backed by strong demand for its airframe MRO activities.
To strengthen its MRO capabilities, the company is expanding its airframe MRO facilities in Oklahoma City and Miami. Once operational next year, these expanded facilities are expected to increase AAR’s overall MRO capacity by 15% and contribute roughly $60 million to its annual sales.
AIR Stock’s Price Performance
Shares of AIR have gained 18% in the past three months compared with the industry’s 15.1% growth.
Woodward delivered an average earnings surprise of 14.66% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $7.82 per share, which indicates year-over-year growth of 13.5%.
Astronics delivered an average earnings surprise of 59.10% in the last four quarters. The Zacks Consensus Estimate for ATRO’s 2026 earnings is pegged at $2.47 per share, which implies year-over-year growth of 35%.
Teledyne Technologies delivered an average earnings surprise of 2.75% in the last four quarters. The consensus estimate for TDY’s 2025 earnings stands at $23.85 per share, which suggests year-over-year growth of 10.8%.
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Here's Why You Should Add AIR Stock to Your Portfolio Right Now
Key Takeaways
AAR Corp.’s (AIR - Free Report) robust presence in the aerospace Maintenance, Repair and Overhaul (“MRO”) market, solid liquidity and low debt are strong upsides. Given its growth prospects, AIR makes for a solid investment option in the Aerospace sector.
Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History of AIR
The Zacks Consensus Estimate for fiscal 2026 earnings per share is pegged at $4.92, which indicates year-over-year growth of 25.8%.
The consensus estimate for fiscal 2026 sales is pegged at $3.20 billion, which indicates year-over-year growth of 15.2%.
It delivered an average earnings surprise of 11.26% in the last four quarters.
AAR Stock’s Debt Position
Currently, the company’s total debt to capital is 37.90%, better than the industry’s average of 43.68%.
AIR’s times interest earned (TIE) ratio at the end of the second quarter of fiscal 2026 was 2.75. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
AIR’s Liquidity
AIR’s current ratio at the end of the fiscal second quarter was 2.85. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.
AIR’s Focus on the MRO Market
The commercial aerospace industry has been seeing a steady rise in aircraft usage, which has increased the need for aircraft maintenance. In the fiscal second quarter, the company’s Repair & Engineering segment recorded a sales improvement of 6.9%, backed by strong demand for its airframe MRO activities.
To strengthen its MRO capabilities, the company is expanding its airframe MRO facilities in Oklahoma City and Miami. Once operational next year, these expanded facilities are expected to increase AAR’s overall MRO capacity by 15% and contribute roughly $60 million to its annual sales.
AIR Stock’s Price Performance
Shares of AIR have gained 18% in the past three months compared with the industry’s 15.1% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are Woodward (WWD - Free Report) , Astronics (ATRO - Free Report) and Teledyne Technologies (TDY - Free Report) . Woodward sports a Zacks Rank #1 at present, while Astronics and Teledyne each carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Woodward delivered an average earnings surprise of 14.66% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $7.82 per share, which indicates year-over-year growth of 13.5%.
Astronics delivered an average earnings surprise of 59.10% in the last four quarters. The Zacks Consensus Estimate for ATRO’s 2026 earnings is pegged at $2.47 per share, which implies year-over-year growth of 35%.
Teledyne Technologies delivered an average earnings surprise of 2.75% in the last four quarters. The consensus estimate for TDY’s 2025 earnings stands at $23.85 per share, which suggests year-over-year growth of 10.8%.