AAR Tops Q4 Estimates and Guides for Double-Digit Sales Growth in FY2027
AIR sits 86% above its 52-week low of $71.43 on elevated volume (1.8× avg).
Summary
AAR reported Q4 FY2026 adjusted EPS of $1.53, beating estimates, and issued FY2027 guidance for continued double-digit sales growth, driven by its parts, repair, and software platform.
Key Events · Earnings and Guidance · AIR
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Q4 Earnings Beat
Adjusted EPS of $1.53 exceeded the $1.38 consensus; revenue of $928M grew 23% YoY, above the $893M estimate.
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FY2026 Full-Year Performance
Adjusted EPS of $5.05 rose 29% on sales of $3.3B (+19% YoY); adjusted EBITDA margin expanded to 12.1% from 11.8%.
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FY2027 Guidance Issued
Q1 FY2027 sales growth (ex-LCP) guided to 21-23%; full-year growth seen in low double-digits to low teens, with adjusted EBITDA margin of 12.25-12.75% in Q1.
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Balance Sheet Strengthening
Net leverage reduced to 2.03x, within the 2.0x-2.5x target range; adjusted operating cash flow was $58M in Q4 and $94M for the full year.
Analysis · AIR · Manufacturing
A strong fourth quarter saw adjusted EPS of $1.53 beat the $1.38 consensus, while revenue of $928M topped the $893M estimate. For the full year, adjusted EPS of $5.05 grew 29% on a 19% sales increase. The company guided for Q1 FY2027 sales growth of 21-23% (ex-Legacy Commercial Programs) and full-year growth in the low double-digits to low teens, signaling continued momentum. Net leverage improved to 2.03x, within the target range, providing financial flexibility. The results and upbeat guidance reinforce the success of AAR's strategic shift toward higher-margin parts, repair, and software activities.
At the time of this filing, AIR was trading at $133.01 on NYSE in the Manufacturing sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $71.43 to $146.75. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.