AIR
IndustrialsAAR Corp. · Aerospace & Defense · $4B
What is AAR Corp.?
AAR Corp. is a mid-cap industrial company serving commercial aviation, defense, and government markets worldwide. Operating from Wood Dale, Illinois, it provides a broad range of aftermarket aviation services and expeditionary support solutions.
AAR Corp. generates revenue through two core segments. Its Aviation Services segment handles maintenance, repair, and overhaul of airframes and components, alongside parts distribution, inventory management, and supply chain logistics for both commercial airlines and government customers. Its Expeditionary Services segment designs, manufactures, and repairs transportation pallets, containers, and shelters, while also providing command-and-control system integration for U.S. and foreign government clients.
AAR Corp. was founded in 1980 and is headquartered in Wood Dale, Illinois.
- Airframe maintenance, repair, and overhaul (MRO)
- Engine and airframe parts distribution and leasing
- Performance-based supply chain logistics for defense
- Expeditionary containers, shelters, and pallets
- Command-and-control engineering and system integration
Is AIR a Good Stock to Buy?
UQS Score rates AIR as Good overall, reflecting a balanced but nuanced profile across its five pillars.
The Growth pillar stands out as the clearest positive — AAR has demonstrated an above-average expansion trajectory relative to sector peers. Valuation also registers favorably, suggesting the market has not yet fully priced in the company's growth potential. Risk sits at a Neutral level, indicating no outsized balance-sheet or operational red flags.
The Moat pillar is rated Weak, meaning AAR lacks the durable competitive advantages that would insulate it from rivals over the long term. Quality comes in at Neutral, pointing to room for improvement in profitability consistency.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does AIR pay dividends?
No — AAR Corp. does not currently pay a dividend.
AAR Corp. does not currently pay a dividend. Companies in capital-intensive aftermarket services often reinvest cash into capacity expansion, acquisitions, and contract wins rather than returning it to shareholders through distributions. Investors seeking income may want to weigh this against AIR's growth-oriented profile.
When does AIR report earnings?
AAR Corp. reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
Recent reporting periods have reflected the company's expanding footprint in both commercial MRO and government services, with growth trends broadly in line with its Strong Growth pillar rating. Revenue mix between Aviation Services and Expeditionary Services can shift quarter to quarter depending on contract timing.
For the most recent quarter's results and guidance, visit AAR Corp.'s investor relations page directly.
AIR Price History
+179.0% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in AAR Corp.?
Based on AAR Corp.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
AIR Long-term Outlook
AAR's Strong Growth pillar suggests the business is expanding at a pace that stands out within the Industrials sector. Demand for commercial aviation aftermarket services continues to benefit from a global fleet that is aging and flying more hours, while defense-related contracts provide a degree of revenue stability. The Neutral Risk rating indicates the company is not carrying unusual financial stress, though execution risk around integrating acquisitions and scaling capacity remains a factor to monitor.
Growth drivers
- Rising global demand for commercial aircraft MRO as fleets age
- Expanding U.S. and allied government defense logistics contracts
- Acquisition-led growth in parts distribution and supply chain services
Key risks
- Weak Moat rating leaves AAR exposed to pricing pressure from larger competitors
- Contract concentration risk in government and defense spending cycles
- Integration challenges from acquisitions could weigh on Quality metrics
AIR vs Peers
AAR Corp. operates in a competitive landscape that spans both commercial aviation services and defense logistics.
VSE focuses heavily on aviation parts supply chain and distribution, making it a direct rival in the aftermarket services space.
Mercury Systems targets defense electronics and processing solutions, competing with AAR on the technology-intensive side of government contracts.
Archer Aviation represents the emerging electric air mobility segment, a longer-term disruptive force in aviation rather than a direct MRO competitor today.
Frequently Asked Questions
What does AAR Corp. do?
AAR Corp. provides aftermarket aviation services — including maintenance, repair, overhaul, and parts distribution — to commercial airlines and government customers. Its Expeditionary Services segment also designs and manufactures transportation equipment and command-and-control systems for U.S. and foreign governments.
Does AIR pay dividends?
AAR Corp. does not currently pay a dividend. The company appears to prioritize reinvesting capital into growth initiatives, acquisitions, and expanding its service capabilities rather than distributing cash to shareholders.
When does AIR report earnings?
AAR Corp. follows a quarterly earnings reporting schedule, as is standard for US-listed companies. For the exact timing of upcoming results, check AAR Corp.'s investor relations page or your brokerage's earnings calendar.
Is AIR a good stock to buy?
UQS Score rates AIR as Good overall. The Growth pillar is Strong and Valuation is favorable, but the Weak Moat and Neutral Quality ratings introduce uncertainty. Whether AIR fits your portfolio depends on your own risk tolerance and investment goals — the full pillar breakdown is available to Pro members.
Is AIR overvalued?
The UQS Valuation pillar for AIR is rated Good, suggesting the stock is not obviously overpriced relative to its fundamentals when compared to sector peers. That said, valuation is one of five pillars — view the complete analysis for a fuller picture.
How does AIR compare to its competitors?
AAR Corp. competes with companies like VSE Corporation in parts distribution and Mercury Systems in defense services. AAR's broader service mix — spanning commercial MRO and expeditionary logistics — differentiates it, though its Weak Moat rating suggests competitors can challenge it on price and contract wins.
What is AIR's market cap bracket?
AAR Corp. is classified as a mid-cap company. This places it in a bracket that typically offers more growth potential than large-caps but with greater volatility and less financial cushion than mega-cap industrials.
Who founded AAR Corp.?
AAR Corp. was founded in 1980. Detailed founding history, including the individuals involved, is widely available through the company's official corporate history and public filings.
Is AIR a long-term quality stock?
As a long-term quality indicator, AIR's UQS profile is mixed. The Strong Growth pillar is a positive signal for long-term compounding potential, but the Weak Moat rating raises questions about whether AAR can sustain competitive advantages over a multi-year horizon. Pro members can access the full pillar detail to assess fit.
What is the main competitive advantage of AAR Corp.?
AAR's primary edge lies in its scale across both commercial and government aviation services, combined with long-term defense contracts that provide recurring revenue. However, the UQS Moat pillar rates this advantage as Weak, indicating it may not be deeply entrenched compared to sector leaders.
What sector does AIR belong to?
AAR Corp. belongs to the Industrials sector, specifically within aviation aftermarket services and defense logistics. This sector tends to be sensitive to airline traffic trends, defense budgets, and broader economic cycles.
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Pro Analysis
AIR — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 53.3 | 42.6 | 31.0 | 81.3 | 56.6 | 67.8 | -0.1 |
| May 21, 2026 | 53.4 | 42.7 | 31.0 | 81.3 | 56.6 | 68.1 | -0.3 |
| May 20, 2026 | 53.7 | 42.8 | 31.0 | 81.3 | 56.6 | 70.0 | +0.1 |
| May 18, 2026 | 53.6 | 42.8 | 31.0 | 81.3 | 56.6 | 69.2 | 0.0 |
| May 17, 2026 | 53.6 | 42.8 | 31.0 | 81.3 | 56.6 | 69.1 | 0.0 |
| May 16, 2026 | 53.6 | 42.8 | 31.0 | 81.3 | 56.6 | 69.3 | +0.3 |
| May 15, 2026 | 53.3 | 42.7 | 31.0 | 81.3 | 56.6 | 67.9 | -0.1 |
| May 14, 2026 | 53.4 | 42.7 | 31.0 | 81.3 | 56.6 | 68.1 | +0.4 |
| May 13, 2026 | 53.0 | 42.3 | 31.0 | 81.3 | 56.6 | 65.9 | +0.2 |
| May 11, 2026 | 52.8 | 42.3 | 31.0 | 81.3 | 56.6 | 64.7 | +1.1 |
AIR — Pillar Breakdown
Quality
— 42.6/100 (25%)AAR Corp. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 81.3/100 (20%)AAR Corp. is growing rapidly with strong revenue and earnings expansion.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 56.6/100 (15%)AAR Corp. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 68.3/100 (15%)AAR Corp. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 31/100 (25%)AAR Corp. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for AIR.
Score Composition
Financial Data
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How is the AIR UQS Score Calculated?
The UQS (Unified Quality Score) for AAR Corp. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses AAR Corp.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether AAR Corp. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.