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AAR Q4 Earnings Surpass Estimates, Sales Rise Year Over Year
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Key Takeaways
AAR reported Q4 adjusted EPS of $1.53, topping estimates and rising 31.9% year over year.
AIR's revenues climbed 23%, driven by parts distribution growth and the HAECO Americas acquisition.
AAR generated stronger operating cash flow and reduced long-term debt during fiscal 2026.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
The company reported GAAP earnings of $1.27 per share compared with 95 cents in the prior-year quarter.
The year-over-year improvement in the bottom line can be attributed to strong sales growth.
AIR reported fiscal 2026 adjusted earnings of $5.05 per share, which were higher than the year-ago figure of $3.91, reflecting the impact of improved operating efficiency on higher sales volumes.
AIR’s Total Sales
In the quarter under review, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the double-digit growth across new parts Distribution within the company's Parts Supply segment and the impact of AIR’s acquisitions of HAECO Americas and ADI.
The company reported total revenues of $3.31 billion in fiscal 2026, which were higher than $2.78 billion in fiscal 2025.
Parts Supply sales surged 38.7% to $423.8 million from $305.5 million in the prior-year quarter. Organic growth in new-parts distribution was 19%, with commercial distribution rising 28% organically and government distribution increasing 7%.
Repair, Engineering, and Software sales jumped 35.1% to $314.4 million. Growth reflected the HAECO Americas acquisition, record component maintenance sales, higher airframe maintenance volumes and capacity, and increased recurring revenues at Trax.
Government Solutions sales declined 8% to $130.2 million due to lower activity under the Worldwide Aviation Support Services program.
Legacy Commercial Programs recorded sales of $59.6 million, down 20.3% year over year.
AIR’s Operational Update
AIR’s adjusted operating income increased 27.4% to $98 million, while adjusted operating margin improved 10 basis points to 10.6%.
Selling, general and administrative expenses amounted to $99.6 million compared with $77.4 million a year ago.
Net interest expenses for the quarter totaled $16.3 million compared with $18.4 million in the year-ago period.
Financial Details of AAR
As of May 31, 2026, AAR’s cash and cash equivalents amounted to $84 million compared with $96.5 million as of May 31, 2025.
The company’s long-term debt totaled $893.9 million as of May 31, 2026, down from $968 million as of May 31, 2025.
In fiscal 2026, net cash provided from operating activities was $98.7 million compared with net cash flow of $36.1 million in the year-ago period.
Lockheed Martin Corporation (LMT - Free Report) is set to report second-quarter 2026 earnings on July 23, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
The Boeing Company (BA - Free Report) is set to report second-quarter 2026 earnings on July 28, before market open.
The Zacks Consensus Estimate for BA’s loss stands at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, calling for year-over-year growth of 5.7%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus mark for its sales is pegged at $13.49 billion, suggesting a year-over-year rise of 3.4%.
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AAR Q4 Earnings Surpass Estimates, Sales Rise Year Over Year
Key Takeaways
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
The company reported GAAP earnings of $1.27 per share compared with 95 cents in the prior-year quarter.
The year-over-year improvement in the bottom line can be attributed to strong sales growth.
AIR reported fiscal 2026 adjusted earnings of $5.05 per share, which were higher than the year-ago figure of $3.91, reflecting the impact of improved operating efficiency on higher sales volumes.
AIR’s Total Sales
In the quarter under review, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the double-digit growth across new parts Distribution within the company's Parts Supply segment and the impact of AIR’s acquisitions of HAECO Americas and ADI.
The company reported total revenues of $3.31 billion in fiscal 2026, which were higher than $2.78 billion in fiscal 2025.
AAR Corp. Price, Consensus and EPS Surprise
AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote
AAR: Segment Details
Parts Supply sales surged 38.7% to $423.8 million from $305.5 million in the prior-year quarter. Organic growth in new-parts distribution was 19%, with commercial distribution rising 28% organically and government distribution increasing 7%.
Repair, Engineering, and Software sales jumped 35.1% to $314.4 million. Growth reflected the HAECO Americas acquisition, record component maintenance sales, higher airframe maintenance volumes and capacity, and increased recurring revenues at Trax.
Government Solutions sales declined 8% to $130.2 million due to lower activity under the Worldwide Aviation Support Services program.
Legacy Commercial Programs recorded sales of $59.6 million, down 20.3% year over year.
AIR’s Operational Update
AIR’s adjusted operating income increased 27.4% to $98 million, while adjusted operating margin improved 10 basis points to 10.6%.
Selling, general and administrative expenses amounted to $99.6 million compared with $77.4 million a year ago.
Net interest expenses for the quarter totaled $16.3 million compared with $18.4 million in the year-ago period.
Financial Details of AAR
As of May 31, 2026, AAR’s cash and cash equivalents amounted to $84 million compared with $96.5 million as of May 31, 2025.
The company’s long-term debt totaled $893.9 million as of May 31, 2026, down from $968 million as of May 31, 2025.
In fiscal 2026, net cash provided from operating activities was $98.7 million compared with net cash flow of $36.1 million in the year-ago period.
AIR’s Zacks Rank
AAR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q2 Defense Releases
Lockheed Martin Corporation (LMT - Free Report) is set to report second-quarter 2026 earnings on July 23, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
The Boeing Company (BA - Free Report) is set to report second-quarter 2026 earnings on July 28, before market open.
The Zacks Consensus Estimate for BA’s loss stands at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, calling for year-over-year growth of 5.7%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus mark for its sales is pegged at $13.49 billion, suggesting a year-over-year rise of 3.4%.