Corrected: AAR Corp Q1 revenue beats estimates as demand for air travel increases

AAR

28/09/2026 22:00

Corrects KD table estimates for Adjusted EPS to $1.29 from $1.33

Overview
US aviation aftermarket platform's fiscal Q1 revenue rose 24%, beating analyst expectations
Adjusted EPS for fiscal Q1 rose 38%, beating analyst expectations
Company agreed to acquire 65% controlling interest in MRO Holdings

Outlook
AAR sees Q2 sales growth (ex. LCP) of 14%-16%
Company expects Q2 adjusted EBITDA margin (ex. LCP) of 13.0%-13.4%
AAR raises FY 2027 sales growth (ex. LCP) outlook to low teens

Result Drivers
AIRLINE DEMAND - Co said strong demand for air travel drove increased demand for its services
PARTS SUPPLY GROWTH - Co said Parts Supply segment grew 31%, led by 23% organic growth in new parts Distribution across Commercial and Government markets
REPAIR, ENGINEERING & SOFTWARE - Co said Repair, Engineering & Software segment sales grew 31%, driven by Airframe MRO, Component MRO, and software activities

Company press release: ID:nPnh8vdGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$918 mln
$880.68 mln (6 Analysts)
Q1 Adjusted EPS
Beat
$1.49
$1.29 (6 Analysts)
Q1 EPS
 
$1
 
Q1 Net Income
 
$40.10 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "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 $145.00, about 26% above its September 28 closing price of $115.09
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)