AAR Corp. (AIR) Earnings
AAR Corp. is expected to report next earnings on July 15, 2026 (in NaN days), with a consensus EPS estimate of $1.41. AIR has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +5.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Mar 24, 2026 | $1.21 | $1.25 | +3.3% | $845M | +4.0% |
| Sep 23, 2025 | $0.98 | $1.08 | +9.8% | $740M | +7.3% |
| Mar 27, 2025 | $0.96 | $0.99 | +3.1% | $678M | -2.5% |
| Sep 23, 2024 | $0.82 | $0.85 | +3.7% | $662M | +2.5% |
| Mar 21, 2024 | $0.84 | $0.85 | +1.7% | $567M | -0.4% |
| Dec 21, 2023 | $0.80 | $0.81 | +1.3% | $545M | -2.1% |
| Jul 18, 2023 | $0.78 | $0.83 | +6.4% | $553M | +5.2% |
| Mar 21, 2023 | $0.70 | $0.75 | +7.1% | $521M | +6.9% |
| Dec 20, 2022 | $0.68 | $0.69 | +1.5% | $470M | +1.7% |
| Sep 22, 2022 | $0.57 | $0.61 | +7.0% | $446M | -1.9% |
| Mar 22, 2022 | $0.58 | $0.63 | +8.6% | $452M | +1.9% |
| Dec 21, 2021 | $0.54 | $0.53 | -1.9% | $437M | +0.9% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q3 FY2026 · March 24, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Another outstanding quarter with 25% growth in total sales, 31% growth in adjusted operating income, and 26% growth in adjusted EBITDA and adjusted earnings per share. - Growth across parts repair and software platform activities, with 14% organic adjusted sales growth led by 36% organic growth in new parts distribution. - Integration of HACO Americas ahead of schedule, hanger expansions on track. ADI performing above expectations. TRAX had another record quarter. Expeditionary services business awarded $450 million in multi-year government contracts.
Guidance
- For Q4, expecting total adjusted sales growth of 19% to 21%, organic adjusted sales growth between 6% and 8%. - Expecting Q4 operating margin of 10.2% to 10.5%. - Full year expectation for total sales growth of approximately 19%, organic sales growth of approximately 12%.
Segment performance
Total sales grew 25% year over year, including 14% organic adjusted sales growth to $845 million. Adjusted EBITDA increased 26% to $102.1 million, adjusted EBITDA margin increased to 12.1%. Adjusted operating income was up 31% to $86.2 million, adjusted operating income margin improved 50 basis points to 10.2%. Parts supply sales grew 45% to $392.5 million, new parts distribution grew 62% total and 36% organically. Repair and engineering sales increased 23% to $265 million, adjusted EBITDA margin decreased 190 basis points to 11.0%, adjusted operating margin decreased 150 basis points to 9.6%. Integrated solutions sales increased 3% year-on-year to $167.8 million, adjusted EBITDA of $19 million was up 18%, adjusted EBITDA margin grew 150 basis points to 11.4%, adjusted operating income of $15.5 million was 25% higher, adjusted operating margin increasing from 7.6% to 9.2%.
Analyst Q&A
Q: Michael Ciamoli with Truist asked about oil prices, capacity cuts by airlines and historical context.
A: Fundamental demand for air travel remains strong, modest capacity adjustments not impacting demand for parts or maintenance.
Q: Sheila Kayoglu with Jefferies followed up on new parts distribution, repair and engineering, visibility and sources of outperformance.
A: Solid visibility through quarter and guidance, sources include ADI outpacing expectations, HACO integration progress, strong quarter for Trax.
Q: Ken Herbert with RBC Capital Markets asked about commercial aftermarket book and ship vs backlog driven, cash generation.
A: Heavy maintenance and distribution backlog-driven, component repair more short cycle, expecting cash flow positive in Q4.
Q: Scott Mikus with Megalius Research asked about parts supply, war impact, organic growth guide.
A: War not expected to impact part supply, Q4 guide due to lapping tough comp last year.
Q: Noah Levitz with Wim Blair asked about Trax deployment, parts marketplace timeline, defense business margins.
A: Delta implementation in early innings, parts marketplace to go live this calendar year, mixed shift towards higher margin government programs to continue.
Q: Michael LeShaw with KeyBank Capital Markets asked about HACO integration progress, integrated solutions growth lumpiness.
A: HACO integration progressing with workforce sizing, system implementation, integrated solutions recurring revenue expected linear with some lumpiness