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AAR

AAR (AIR) Q1 2027 Earnings

Reported Jul 21, 2026 at 4:36 PM ET · SEC Source

Q1 27 EPS

$1.53

BEAT +10.53%

Est. $1.38

Q1 27 Revenue

$928.0M

BEAT +3.73%

Est. $894.6M

vs S&P Since Q1 27

+1.0%

BEATING MARKET

AIR +4.4% vs S&P +3.5%

Market Reaction

Did AIR Beat Earnings? Q1 2027 Results

AAR Corp delivered a strong finish to fiscal year 2026, posting fourth-quarter results that beat Wall Street expectations on both the top and bottom lines and extending the company's consensus EPS beat streak to five consecutive quarters. Adjusted di… Read more AAR Corp delivered a strong finish to fiscal year 2026, posting fourth-quarter results that beat Wall Street expectations on both the top and bottom lines and extending the company's consensus EPS beat streak to five consecutive quarters. Adjusted diluted EPS of $1.53 topped the $1.38 consensus estimate by 10.53%, while revenue of $928.00 million came in 3.73% ahead of the $894.61 million forecast, representing 23.0% year-over-year growth. The standout driver was the Parts Supply segment, which surged 39% on the strength of organic growth in new parts and commercial distribution, more than offsetting an 8% sales decline in Government Solutions as the legacy WASS program wound down. Adjusted EBITDA rose 27% to $115.80 million, with net leverage declining to 2.03x, well within the company's target range. RBC Capital raised its price target on the stock following the results, reflecting broader analyst confidence. Looking ahead, management guided for 21% to 23% sales growth in Q1 fiscal 2027, with full-year expansion expected in the low double-digits to low teens as HAECO Americas integration nears completion.

Key Takeaways

  • • 19% organic growth in new parts Distribution activity
  • • 28% organic commercial Distribution sales growth
  • • Record sales in Component MRO
  • • Airframe MRO organic growth driven by volume and capacity increases
  • • Strong recurring revenue and margin growth at Trax
  • • Better program mix driving substantial margin improvement in Government Solutions
  • • Growth and margin expansion at Mobility Systems driven by pallet shipments
  • • Impact of HAECO Americas and ADI acquisitions

AIR Forward Guidance & Outlook

For Q1 fiscal 2027, AAR guides for 21%–23% sales growth (excluding Legacy Commercial Programs) with adjusted EBITDA margin of 12.25%–12.75% and an estimated tax rate of 28%. For full year fiscal 2027, the company expects sales growth (excluding Legacy Commercial Programs) in the low double-digits to low teens. Key drivers include continued strength in new parts Distribution and software, recent acquisitions contributing to revenue growth, improving Government Solutions program mix driving margin expansion, and HAECO Americas integration expected to complete by the second half of FY 2027. Miami Airframe MRO expansion inductions are expected to begin in Q2 FY 2027.

24/7 Wall St

AIR YoY Financials

Q1 2027 vs Q1 2026, source: SEC Filings

24/7 Wall St

AIR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q1 27

“Our momentum continued into the fourth quarter as we delivered another strong set of results. Total adjusted sales were up 26%, including 13% organically. Growth was driven by each of our key parts, repair, and software platform activities in the quarter, led by our Parts Supply segment which grew 39%. Within Parts Supply, new parts Distribution activity organic growth was 19%. Our Repair, Engineering, and Software segment reported 35% sales growth in the quarter driven by a significant increase in our Component MRO activities, higher volumes in our Airframe MRO facilities, and growth in recurring revenue at Trax.”

— John M. Holmes, Q1 2027 Earnings Press Release

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