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.
AAR Corp. research snapshot
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.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | AAR 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 |
| Moat | The 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 |
| Management | CEO 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 trend | TTM 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 |
| Valuation | The 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 trend | AIR 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 level | Key risks are government contract concentration, civil aviation cycle sensitivity, acquisition integration, FCPA compliance legacy, interest expense on debt, and labor availability. | Medium-high |
| AI confidence | High 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 certainty | Medium certainty. AAR is a solid aviation services business, but the stock already reflects strong commercial and government tailwinds. | Medium |
AIR AI stock forecast
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.
$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.
$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.
$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 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.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $135.67 | Latest verified close used for this page as of the July 10, 2026 data cutoff. |
| Near support | $125 to $130 | Support planning zone based on the prior consolidation range and 50-day moving-average area reported by public technical sources. |
| Secondary support | $108 to $112 | The area of prior trading activity from May-June 2026. A sustained break would weaken the intermediate setup. |
| Near resistance | $140 to $147 | The 52-week high zone at $146.75. Breakout attempts need volume confirmation and a catalyst. |
| 50-day moving average | About $125 to $128 | Google Finance and Barchart showed AIR above the 50-day moving average around the cutoff. |
| 200-day moving average | About $100 to $105 | AIR rallied well above the 200-day moving average, reflecting the strong year-over-year trend. |
| Momentum | RSI near 55-58, mixed oscillators | RSI was in neutral territory, not overbought, but momentum has moderated after the run from $71 to $147. |
| Volume | About 260K shares on Jul 10 | Volume was below the 463K average, so breakout and breakdown moves should be confirmed by above-average participation. |
| Volatility | Beta 1.09, daily range about $3-5 | Position sizing should allow for normal daily movement. Beta near 1.0 suggests market-movement-level risk. |
| Invalidation | Close below $125, then $108 | A close below the 50-day area weakens the near-term setup. A break below $108 would challenge the intermediate trend. |
AIR AI trading strategy
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.
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.
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.
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
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.
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.
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.
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.
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.
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
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| AIR price | $135.67 close on July 10, 2026 | Google Finance and Yahoo Finance quote snapshots | July 10, 2026 |
| Market capitalization | $5.39 billion, verified as $135.67 x 39,760,000 shares | financial_rigor.py market cap verification and Google Finance | July 10, 2026 |
| TTM revenue | $3.13 billion (May 2025 through Feb 2026) | Google Finance quarterly revenue data | July 10, 2026 |
| TTM net income | $171.0 million | Google Finance quarterly income data | July 10, 2026 |
| FY2023 revenue (May 2023) | $1.99 billion | AAR Corp. FY2023 Form 10-K via SEC EDGAR | July 10, 2026 |
| FY2023 net income | $90.2 million | AAR Corp. FY2023 Form 10-K via SEC EDGAR | July 10, 2026 |
| Cash and equivalents | $38.5 million (estimated from recent filings) | SEC EDGAR filings and Google Finance | July 10, 2026 |
| Total debt | $382.5 million (FY2023), increased since via acquisitions | AAR Corp. FY2023 Form 10-K and Google Finance | July 10, 2026 |
| Revenue by segment | Parts Supply ~45%, MRO Services ~35%, Government & Defense ~15%, Other ~5% (estimated) | AAR Corp. investor presentations and annual report segment data | July 10, 2026 |
| Moving averages and momentum | 50-day MA about $125-128, 200-day MA about $100-105, RSI near 55-58 | Google Finance and Barchart technical snapshots | July 10, 2026 |
| Valuation math | 30.08x TTM PE, 35.24x TTM P/FCF, 2.84% FCF yield from financial_rigor.py | financial_rigor.py valuation verification | July 10, 2026 |
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.
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