AAR Corp Q4 results beat estimates on strong parts supply growth

AAR

21/07/2026 21:20

    

    Overview
  
US aviation aftermarket platform's Q4 sales rose 23%, beating analyst expectations
Adjusted diluted EPS for Q4 increased 32%, beating analyst expectations
Company to wind down Legacy Commercial Programs business as part of segment realignment

    

    Outlook
  
AAR Corp sees Q1 FY2027 sales growth (ex. LCP) of 21%-23%
Company expects Q1 FY2027 adjusted EBITDA margin (ex. LCP) of 12.25%-12.75%
AAR Corp sees FY2027 sales growth (ex. LCP) in low double-digits to low teens

    

    Result Drivers
  
PARTS SUPPLY GROWTH - Sales in the Parts Supply segment rose 39% in Q4, with new parts Distribution organic growth at 19%
REPAIR AND SOFTWARE EXPANSION - Repair, Engineering, and Software segment sales grew 35% in Q4, driven by increased Component MRO activity, higher Airframe MRO volumes, and growth in recurring software revenue
ACQUISITION IMPACT - Acquisitions, including HAECO Americas and ADI, contributed to commercial and government sales growth, though HAECO Americas had a short-term dilutive impact on margins

    
Company press release: ID:nPn9GB8R5a

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q4 Sales
Beat
$928 mln
$868.54 mln (7 Analysts)
Q4 Adjusted EPS
Beat
$1.53
$1.38 (7 Analysts)
Q4 EPS
 
$1.27
 
Q4 Net Income
 
$50.7 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for AAR Corp is $130.00, about 4.2% below its July 20 closing price of $135.69
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 20 three months ago

    

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)