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AIR expanded MRO capacity in Oklahoma City and is advancing Miami hangar expansion projects.
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 #2 (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 $4.97, which indicates year-over-year growth of 27.1%.
The consensus estimate for fiscal 2026 sales is pegged at $3.27 billion, which indicates year-over-year growth of 17.7%.
It delivered an average earnings surprise of 11.30% in the last four quarters.
AAR’s Debt Position
Currently, the company’s total debt to capital is 35.09%, better than the industry’s average of 41.35%.
AIR’s times interest earned (TIE) ratio at the end of the third quarter of fiscal 2026 was 4.18. 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 third quarter was 2.70. 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 third quarter, the company’s Repair & Engineering segment recorded a sales improvement of 22.9%, backed by strong demand for its airframe MRO activities.
To further enhance its MRO capabilities, the company is currently involved in the airframe MRO facility expansions at its Miami hangars. In January 2026, the company completed the hangar capacity expansion at its Oklahoma City airframe MRO facility and began aircraft inductions in early March 2026.
AIR Stock’s Price Performance
Shares of AIR have gained 94.1% in the past year compared with the industry’s 22.8% growth.
Heico delivered an average earnings surprise of 13.82% in the last four quarters. The consensus estimate for HEI’s fiscal 2026 earnings stands at $5.78 per share, which suggests year-over-year growth of 18%.
Woodward delivered an average earnings surprise of 16.97% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $9.34 per share, which indicates year-over-year growth of 35.6%.
Teledyne Technologies delivered an average earnings surprise of 4.69% in the last four quarters. The consensus estimate for TDY’s 2026 earnings is pegged at $24.01 per share, which implies year-over-year growth of 9.2%.
View the Zacks #1 Rank List
Image: Bigstock
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 #2 (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 $4.97, which indicates year-over-year growth of 27.1%.
The consensus estimate for fiscal 2026 sales is pegged at $3.27 billion, which indicates year-over-year growth of 17.7%.
It delivered an average earnings surprise of 11.30% in the last four quarters.
AAR’s Debt Position
Currently, the company’s total debt to capital is 35.09%, better than the industry’s average of 41.35%.
AIR’s times interest earned (TIE) ratio at the end of the third quarter of fiscal 2026 was 4.18. 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 third quarter was 2.70. 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 third quarter, the company’s Repair & Engineering segment recorded a sales improvement of 22.9%, backed by strong demand for its airframe MRO activities.
To further enhance its MRO capabilities, the company is currently involved in the airframe MRO facility expansions at its Miami hangars. In January 2026, the company completed the hangar capacity expansion at its Oklahoma City airframe MRO facility and began aircraft inductions in early March 2026.
AIR Stock’s Price Performance
Shares of AIR have gained 94.1% in the past year compared with the industry’s 22.8% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same sector are Heico (HEI - Free Report) , Woodward (WWD - Free Report) and Teledyne Technologies (TDY - Free Report) . HEI currently sports a Zacks Rank #1 (Strong Buy). WWD and TDY carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Heico delivered an average earnings surprise of 13.82% in the last four quarters. The consensus estimate for HEI’s fiscal 2026 earnings stands at $5.78 per share, which suggests year-over-year growth of 18%.
Woodward delivered an average earnings surprise of 16.97% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $9.34 per share, which indicates year-over-year growth of 35.6%.
Teledyne Technologies delivered an average earnings surprise of 4.69% in the last four quarters. The consensus estimate for TDY’s 2026 earnings is pegged at $24.01 per share, which implies year-over-year growth of 9.2%.