Q1 26 EPS
$1.08
BEAT +9.76%
Est. $0.98
Q1 26 Revenue
$739.6M
BEAT +7.27%
Est. $689.5M
vs S&P Since Q1 26
+59.7%
BEATING MARKET
AIR +73.9% vs S&P +14.2%
Market Reaction
Did AIR Beat Earnings? Q1 2026 Results
AAR Corp opened fiscal 2026 with a convincing beat on both top and bottom lines, as the aviation services company reported first-quarter adjusted diluted EPS of $1.08, clearing the $0.98 consensus estimate by 9.76%, while revenue climbed 11.8% year-o… Read more AAR Corp opened fiscal 2026 with a convincing beat on both top and bottom lines, as the aviation services company reported first-quarter adjusted diluted EPS of $1.08, clearing the $0.98 consensus estimate by 9.76%, while revenue climbed 11.8% year-over-year to $739.60 million against expectations of $689.45 million. The standout driver was the Parts Supply segment, which surged 27% organically to $317.80 million, fueled by strong aftermarket parts trading and rapid expansion in new parts Distribution, where AAR continues to win customers and build market share. Adjusted EBITDA rose 18% to $86.70 million, with margins expanding to 11.7%, as volume leverage and Distribution profitability more than offset a $44.90 million operating cash outflow tied to deliberate inventory investment. A recently signed multi-year service extension with Cebu Pacific added further evidence of broadening commercial momentum. Looking ahead, management guided for 7%-10% sales growth in Q2 FY26 and targets bringing net leverage down to 2.0x-2.5x during the fiscal year, with sold-out hangar expansions in Oklahoma City and Miami set to provide additional capacity tailwinds.
Key Takeaways
- • New parts Distribution activities driving meaningful double-digit growth
- • Strong demand for aftermarket parts in Parts Supply
- • 17% adjusted organic sales growth
- • Adjusted EBITDA margin expansion to 11.7% from 11.3%
- • Cost discipline and lower SG&A expenses
- • USM delivered meaningful growth in quarter
- • Sales to commercial customers increased 11%, sales to government customers increased 15%
AIR YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
AIR Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our first quarter was a strong start to the fiscal year as we drove significant growth across all of our segments. Adjusted sales were up 17% organically largely driven by Parts Supply which was up 27% in the quarter. Once again, we saw exceptional performance out of our new parts Distribution activities as we continue to win new business and expand our market share.”
— John M. Holmes, Q1 2026 Earnings Press Release
AIR Earnings Trends
AIR vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AIR EPS Trend
Earnings per share: estimate vs actual
AIR Revenue Trend
Quarterly revenue: estimate vs actual
AIR Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 BEAT | $1.16 | $1.25 | +8.07% | $845.1M | +4.00% |
| Q2 26 BEAT | $1.04 | $1.18 | +13.65% | $795.3M | +4.49% |
| Q1 26 BEAT | $0.98 | $1.08 | +9.76% | $739.6M | +7.27% |
| Q4 25 BEAT FY | $1.01 | $1.16 | +15.05% | $754.5M | +8.44% |
| FY Full Year | $3.76 | $3.91 | +4.04% | $2.78B | +2.22% |
| Q3 25 BEAT | $0.96 | $0.99 | +2.70% | $678.2M | -2.99% |