AAR (AIR) Q2 2027 Earnings
How Did AIR Stock React to Q2 2027 Earnings?
Did AIR Beat Earnings? Q2 2027 Results
Yes. AAR reported Q2 2027 earnings of $1.49 a share on Sep 28, 2026, beating the $1.30 consensus estimate by 14.4%. Revenue was $918.0M against a $880.3M estimate.
AAR Corp delivered a strong fiscal first quarter of 2027, beating Wall Street expectations on both the top and bottom lines and extending its streak of consensus EPS beats to six consecutive quarters. The aviation services company posted adjusted diluted EPS of $1.49, clearing the $1.30 analyst consensus by 14.40%, while revenue of $918.00 million came in 4.28% ahead of the $880.35 million estimate and grew 24.1% from the year-ago period. The outsized revenue growth was driven by broad-based momentum across segments, with Parts Supply and Repair, Engineering and Software each posting 31% sales gains, while adjusted EBITDA margins expanded 100 basis points to 12.7%. Cash flow from operations swung sharply positive to $55.80 million from negative $44.90 million a year earlier, and net leverage declined to 1.81x. Looking ahead, the company raised its full-year FY2027 sales growth guidance to low teens and guided Q2 EBITDA margins of 13.0% to 13.4%, with analysts holding a consensus moderate buy rating and an average price target of $135.60.
- Strong demand for air travel driving demand for aftermarket services
- 23% organic growth in new parts Distribution across commercial and government end markets
- Airframe MRO, Component MRO, and software activities drove RE&S segment growth
- Mobility Systems strength drove Government Solutions growth
- Acquisitions contributed 13.3 percentage points to total sales growth of 24.1%
- Organic sales growth of 10.8%
- Commercial customer sales increased 28%; government customer sales increased 14%
“This was a very strong start to our fiscal year. Our airline customers continue to experience strong demand for air travel, which in turn is driving strong demand for our services, as evidenced by our results this quarter. Total sales were up 24%, and we saw growth across all three core segments. In our Parts Supply segment, total growth of 31% was led by 23% organic growth in new parts Distribution on strength in both Commercial and Government end markets. Our Repair, Engineering & Software (RE&S) segment reported 31% sales growth, driven by our Airframe MRO, Component MRO, and software activities. Government Solutions was up 4% driven by strength in Mobility Systems.”
AAR CEO, on the earnings call
What Is AAR's Outlook?
For Q2 FY2027, AAR guided for sales growth (excluding Legacy Commercial Programs) of 14%-16% and adjusted EBITDA margin (excluding Legacy Commercial Programs) of 13.0%-13.4%. For full year FY2027, the company raised its sales growth guidance (excluding Legacy Commercial Programs) to low teens, up from the prior range of low double-digits to low teens. This guidance does not include any impact from the pending MRO Holdings acquisition. The company expressed confidence in delivering another year of strong performance in fiscal 2027 given continued demand for its solutions.
AIR YoY Financials
| Metric | Q2 2027 | Q2 2026 | Year over year |
|---|---|---|---|
| Revenue | $918.0M | $739.6M | +24.1% |
| Gross Profit | $176.3M | $133.7M | +31.9% |
| Operating Income | $72.1M | $64.9M | +11.1% |
| Net Income | $40.1M | $34.4M | +16.6% |
AIR Revenue by Segment
When Does AAR Report Next?
Figures from SEC filings and company reports. Not investment advice.