AAR Corp. research snapshot

AIR AI Stock Analysis

AIR AI stock analysis currently profiles AAR Corp. as a well-established aviation services provider with growing parts supply, MRO, and government business, but with an elevated trailing earnings multiple. At the July 10, 2026 cutoff, the latest verified close was $135.67, market capitalization was about $5.39 billion, and the main question was whether revenue momentum, government contracts, and recent acquisitions can sustain the current valuation around 30x TTM earnings. This is informational research and not investment advice.

Current price

$135.67

Market cap

$5.39 billion

AI score

64 / 100

Rating

Solid cyclical aviation services business, elevated P/E

Trend status

Moderate uptrend, near 52-week high zone after rally from $71 low

Data cutoff (updated weekly)

July 10, 2026

Informational use only. This page is not investment advice.

Research quality check

information Richness
A-level information richness. AAR Corp. has been public since 1966, with long SEC filing history, active analyst coverage from KeyBanc, RBC, Jefferies, Truist, and William Blair, liquid market data, and frequent technical updates.
bias Check
The main AI bias risk is consensus anchoring because AIR benefits from strong civil aviation and government spending trends that are widely covered. This page separates filing-backed facts from scenario judgments and asks what could cause the stock to underperform.
ai Confidence
High data confidence
investment Certainty
Medium. AAR is a durable business with multi-decade aviation exposure, but the investment outcome depends on parts demand cycles, government contracting, acquisition integration, margin trends, and the price paid.

Quick verdict table

DimensionConclusionConfidence
Business qualityAAR supplies aircraft parts, maintenance repair and overhaul services, and engineering solutions to commercial and government customers worldwide, with repeat-purchase revenue and a large global installed base.High
MoatThe moat comes from scale in used serviceable material, FAA/EASA certifications, global distribution, long-standing airline and government relationships, and approved maintenance network breadth.Medium-high
ManagementCEO John Holmes has led since 2018 with consistent execution, acquisitions such as HAECO Americas and Aircraft Reconfig Technologies, and steady margin improvement, though the FCPA settlement and government contracting risks are notable.Medium-high
Financial trendTTM revenue through February 2026 was about $3.13 billion, up from $1.99 billion in FY2023, with net income of $171 million TTM versus $90 million in FY2023, reflecting strong post-pandemic recovery.High
ValuationThe stock traded near 30x TTM earnings and 35x TTM free cash flow at the cutoff, so the price leaves limited room for margin compression or growth deceleration.Medium
Technical trendAIR rallied from a $71.43 52-week low to a $146.75 high and was trading at $135.67, above the 50-day area but below the recent high, with momentum indicators mixed.Medium-high
Risk levelKey risks are government contract concentration, civil aviation cycle sensitivity, acquisition integration, FCPA compliance legacy, interest expense on debt, and labor availability.Medium-high
AI confidenceHigh confidence for the business profile, SEC filings, market cap math, and major risk categories. Lower confidence for precise future revenue and margin paths.High data confidence
Investment certaintyMedium certainty. AAR is a solid aviation services business, but the stock already reflects strong commercial and government tailwinds.Medium

AIR AI stock forecast

AIR AI Stock Forecast Scenarios

The AIR AI stock forecast uses scenario ranges around the $135.67 cutoff price. It does not claim that AI can predict a specific future price. The bullish case requires sustained parts and MRO demand, government contract wins, successful HAECO integration, and margin expansion. The base case assumes steady earnings growth with the P/E compressing toward 25x. The bearish case assumes a cyclical downturn, government spending cuts, or multiple compression.

Bullish case

$183 to $206

More likely if AAR sustains double-digit revenue growth, expands margins through HAECO integration, wins additional government contracts, and the market values AIR near 30x three-year forward EPS.

Base case

$135 to $155

More likely if revenue grows at a high-single-digit pace, margins stabilize, buybacks continue, and investors value AIR near a mid-20s earnings multiple.

Bearish case

$79 to $99

More likely if civil aviation activity softens, government spending slows, acquisition integration lags, labor costs rise, or the market resets AIR toward a high-teens earnings multiple.

AIR AI technical analysis

AIR AI Technical Analysis

AIR AI technical analysis starts from the $135.67 July 10 close used for this July 12 static page. Public technical sources showed the stock above the 50-day moving average but below the 52-week high of $146.75, with RSI neutral. Because this page does not fetch request-time market data, traders should confirm levels on a live chart before acting.

LevelValueWhy it matters
Current price$135.67Latest verified close used for this page as of the July 10, 2026 data cutoff.
Near support$125 to $130Support planning zone based on the prior consolidation range and 50-day moving-average area reported by public technical sources.
Secondary support$108 to $112The area of prior trading activity from May-June 2026. A sustained break would weaken the intermediate setup.
Near resistance$140 to $147The 52-week high zone at $146.75. Breakout attempts need volume confirmation and a catalyst.
50-day moving averageAbout $125 to $128Google Finance and Barchart showed AIR above the 50-day moving average around the cutoff.
200-day moving averageAbout $100 to $105AIR rallied well above the 200-day moving average, reflecting the strong year-over-year trend.
MomentumRSI near 55-58, mixed oscillatorsRSI was in neutral territory, not overbought, but momentum has moderated after the run from $71 to $147.
VolumeAbout 260K shares on Jul 10Volume was below the 463K average, so breakout and breakdown moves should be confirmed by above-average participation.
VolatilityBeta 1.09, daily range about $3-5Position sizing should allow for normal daily movement. Beta near 1.0 suggests market-movement-level risk.
InvalidationClose below $125, then $108A close below the 50-day area weakens the near-term setup. A break below $108 would challenge the intermediate trend.

AIR AI trading strategy

AIR AI Trading Strategy Framework

The AIR AI trading strategy is a rules-based framework, not personalized advice. It combines filing-backed business evidence, technical confirmation, position sizing, and clear invalidation levels.

Trend-following setup

Look for AIR to hold above the 50-day moving average near $125-128 and break the $140-147 resistance zone with volume above the 463K average before treating momentum as confirmed.

A failed breakout or daily close below the 50-day area should reduce confidence in the setup.

Mean-reversion setup

If AIR pulls back toward $125-130 without a thesis break, compare price stabilization with upcoming Q4 FY2026 earnings, parts demand trends, and government contract news.

Do not average down solely because AAR is a multi-decade business. Define maximum loss and review valuation first.

Fundamental monitor

Track quarterly revenue growth, MRO margins, HAECO Americas integration progress, government contract awards, debt levels, and free cash flow conversion.

Lower the rating if organic revenue growth slows while margins compress and the stock still trades at a premium P/E.

Investment research summary

Four-master Research Compression

Business essence

AAR supplies aircraft parts, performs maintenance and repairs, and provides engineering services to airlines, governments, and defense customers globally, earning repeat revenue from a large installed aircraft fleet.

Moat

The moat is based on scale in used serviceable material, global certification breadth, multi-decade customer relationships, approved maintenance network scope, and government contract incumbency.

Munger risk inversion

The thesis can fail if civil aviation enters a downturn, government contracts are lost or recompeted at lower margins, HAECO integration underperforms, labor costs rise, or investors reset the P/E multiple lower.

Management

John Holmes and the leadership team have grown revenue through organic execution and acquisitions, improved margins, and managed a complex government and commercial portfolio. The FCPA settlement and compliance costs remain monitoring items.

Industry trend

AAR operates at the intersection of commercial aviation growth, government defense spending, and aging aircraft fleet MRO demand. These are durable trends, but civil aviation is inherently cyclical.

Valuation and margin of safety

At roughly 30x TTM earnings and 35x TTM free cash flow, the current price builds in continued strong performance. A margin of safety would require either faster growth or a lower entry point.

Source-backed data

AIR Data Table

Every metric below includes a source and last verification date.

MetricValueSourceLast verified
AIR price$135.67 close on July 10, 2026Google Finance and Yahoo Finance quote snapshotsJuly 10, 2026
Market capitalization$5.39 billion, verified as $135.67 x 39,760,000 sharesfinancial_rigor.py market cap verification and Google FinanceJuly 10, 2026
TTM revenue$3.13 billion (May 2025 through Feb 2026)Google Finance quarterly revenue dataJuly 10, 2026
TTM net income$171.0 millionGoogle Finance quarterly income dataJuly 10, 2026
FY2023 revenue (May 2023)$1.99 billionAAR Corp. FY2023 Form 10-K via SEC EDGARJuly 10, 2026
FY2023 net income$90.2 millionAAR Corp. FY2023 Form 10-K via SEC EDGARJuly 10, 2026
Cash and equivalents$38.5 million (estimated from recent filings)SEC EDGAR filings and Google FinanceJuly 10, 2026
Total debt$382.5 million (FY2023), increased since via acquisitionsAAR Corp. FY2023 Form 10-K and Google FinanceJuly 10, 2026
Revenue by segmentParts Supply ~45%, MRO Services ~35%, Government & Defense ~15%, Other ~5% (estimated)AAR Corp. investor presentations and annual report segment dataJuly 10, 2026
Moving averages and momentum50-day MA about $125-128, 200-day MA about $100-105, RSI near 55-58Google Finance and Barchart technical snapshotsJuly 10, 2026
Valuation math30.08x TTM PE, 35.24x TTM P/FCF, 2.84% FCF yield from financial_rigor.pyfinancial_rigor.py valuation verificationJuly 10, 2026

Frequently Asked Questions

This AIR AI stock analysis is an informational tool for research and education only. It is not investment advice, a recommendation, or a guarantee of future performance. Forecast ranges are scenarios based on available data as of July 10, 2026 and can be wrong.