S&P 500
7,548.80
-0.01%
Dow Jones
52,528.70
+0.03%
Nasdaq 100
29,737.40
-0.04%
Russell 2000
2,990.61
0.00%
FTSE 100
10,480.00
-0.33%
Nikkei 225
68,869.70
-0.23%
AAR

AAR (AIR) Q3 2026 Earnings

Reported Mar 24, 2026 at 4:36 PM ET · SEC Source

Q3 26 EPS

$1.25

BEAT +8.07%

Est. $1.16

Q3 26 Revenue

$845.1M

BEAT +4.00%

Est. $812.6M

vs S&P Since Q3 26

+15.0%

BEATING MARKET

AIR +29.4% vs S&P +14.4%

Market Reaction

Did AIR Beat Earnings? Q3 2026 Results

AAR Corp posted a standout fiscal third quarter, with adjusted diluted EPS of $1.25 clearing the $1.16 consensus by 8.07% and revenue of $845.10 million topping estimates by 4.00% on 24.6% year-over-year growth, signaling that the company's acquisiti… Read more AAR Corp posted a standout fiscal third quarter, with adjusted diluted EPS of $1.25 clearing the $1.16 consensus by 8.07% and revenue of $845.10 million topping estimates by 4.00% on 24.6% year-over-year growth, signaling that the company's acquisition-fueled expansion strategy is delivering ahead of schedule. The headline driver was a surging Parts Supply segment, where sales jumped 45% to $392.50 million on 36% organic growth in new parts distribution and 55% organic growth in government sales, with newly acquired ADI already exceeding management expectations and lifting segment adjusted EBITDA margins 130 basis points to 14.9%. Adjusted EBITDA for the consolidated company rose 26% to $102.10 million, while cash from operations swung to a robust $74.70 million from negative $18.70 million a year ago, pushing net leverage down to a comfortable 2.17x. A freshly secured U.S. Air Force cargo pallet contract worth up to $450 million reinforced the company's government revenue outlook. Management raised full-year FY2026 guidance, now targeting approximately 19% total sales growth and 12% organic growth, with the pending A-R-T acquisition expected to close in Q4.

Key Takeaways

  • • 36% organic growth in new parts Distribution activity
  • • 55% organic growth in new parts Distribution sales to government customers
  • • Continued volume increases in hangars and component repair facilities
  • • Trax recurring software revenue expansion
  • • Acquisitions of HAECO Americas and ADI contributing to top-line growth
  • • ADI exceeding expectations with accretive adjusted operating margins
  • • Sales mix shift toward higher-margin offerings

AIR Forward Guidance & Outlook

AAR raised its full-year FY2026 guidance: total sales growth now expected at approximately 19% (up from approaching 17%) and organic sales growth at approximately 12% (up from approaching 11%). For Q4 FY2026, the company guides total sales growth of 19–21%, organic sales growth of 6–8%, adjusted operating margin of 10.2–10.5%, and an estimated tax rate of 28%. The company expects continued margin expansion from sales mix shift to higher-margin offerings and synergy realization from recent acquisitions. The A-R-T acquisition is expected to close in Q4 FY2026. An Investor Day is scheduled for May 12, 2026 in New York.

24/7 Wall St

AIR YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

24/7 Wall St

AIR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“AAR delivered another outstanding quarter, continuing our momentum. Total sales were up 25%, including 14% organic adjusted sales growth. We saw growth across each of our parts, repair, and software platform activities in the quarter. Our Parts Supply segment grew 45% led by 36% organic growth in our new parts Distribution activity. Within new parts Distribution we saw 55% organic growth in sales to our government customers.”

— John M. Holmes, Q3 2026 Earnings Press Release

Back to AIR Stock Page