AAR (AIR) Q3 2026 Earnings
How Did AIR Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +8.88%.
Did AIR Beat Earnings? Q3 2026 Results
Yes. AAR reported Q3 2026 earnings of $1.25 a share on Mar 24, 2026, beating the $1.16 consensus estimate by 8.1%. Revenue was $845.1M against a $812.6M estimate.
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.
- 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
“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.”
AAR CEO, on the earnings call
What Was AAR's Outlook in Q3 2026?
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.
AIR YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $845.1M | $678.2M | +24.6% |
| Gross Profit | $154.7M | $131.7M | +17.5% |
| Operating Income | $65.8M | $71.1M | −7.5% |
| Net Income | $68.0M | $7.1M | +864.0% |
AIR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.