AAR Corp. (AIR) 10-Year Financial Performance & Capital Metrics

AIR • • Industrial / General

IndustrialsAerospace & DefenseMRO & Aftermarket ServicesAviation MRO Services

AboutAAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Aviation Services segment offers aftermarket support and services; inventory management and distribution services; and maintenance, repair, and overhaul, as well as engineering services. This segment also sells and leases new, overhauled, and repaired engine and airframe parts, and components; and provides inventory and repair programs, warranty claim management, and outsourcing programs for engine and airframe parts and components, as well as performance-based supply chain logistics programs in support of the U.S. department of defense and foreign governments. In addition, it offers airframe inspection, maintenance, repair and overhaul, painting, line maintenance, airframe modification, structural repair, avionic and installation, exterior and interior refurbishment, and engineering and support services; and repairs and overhauls components, landing gears, wheels, and brakes. The Expeditionary Services segment provides products and services supporting the movement of equipment and personnel by the U.S. and foreign governments, and non-governmental organizations. This segment also designs, manufactures, and repairs transportation pallets, and various containers and shelters; and provides engineering, design, and system integration services for command and control systems. The company serves domestic and foreign passenger airlines; domestic and foreign cargo airlines; regional and commuter airlines; business and general aviation operators; original equipment manufacturers; aircraft leasing companies; aftermarket aviation support companies; and domestic and foreign military customers. It primarily markets and sells products and services through its employees and foreign sales representatives. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.Show more

Revenue $2.78B +19.9%
EBITDA $240M +41.1%
Net Income $13M -73.0%
EPS (Diluted) 0.35 -72.9%
Gross Margin 18.98% -0.5%
EBITDA Margin 8.65% +17.7%
Operating Margin 6.66% +19.5%
Net Margin 0.45% -77.5%
ROE 1.04% -74.3%
ROIC 6.41% +16.4%
Debt/Equity 0.86 -3.5%
Interest Coverage 2.46 -17.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Momentum leader: RS Rating 82 (top 18%)
✓High quality earnings: Operating CF exceeds net income
✓Trading near 52-week high

✗Weaknesses

✗Weak 3Y average ROE of 4.5%
✗Profits declining 12.8% over 5 years

Price & Volume

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Growth Metrics

Revenue CAGR

10Y5.72%

5Y6.06%

3Y15.17%

TTM15.4%

Profit (Net Income) CAGR

10Y2.05%

5Y-12.8%

3Y-45.84%

TTM796.19%

EPS CAGR

10Y3.85%

5Y-13.19%

3Y-45.48%

TTM307.94%

ROCE

10Y Avg7.11%

5Y Avg7.89%

3Y Avg8.26%

Latest8.06%

Peer Comparison

Aviation MRO Services

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SAROStandardAero, Inc.	10.89B	32.55	858.84	14.77%	3.15%	7.15%		1.02
AIRAAR Corp.	4.18B	105.74	302.11	19.91%	3.17%	6.03%	0.03%	0.86
VSECVSE Corporation	4.94B	211.34	248.64	25.53%	2.39%	2.7%		0.49
HEIHEICO Corporation	19.74B	358.04	73.07	16.26%	15.39%	14.24%	4.36%	0.45
SKYHSky Harbour Group Corporation	320.54M	9.40	-5.34	94.86%	-17.82%	-2.62%		2.02

Profit & Loss

	May 2016	May 2017	May 2018	May 2019	May 2020	May 2021	May 2022	May 2023	May 2024	May 2025
Sales/Revenue+	1.66B	1.77B	1.75B	2.05B	2.07B	1.65B	1.82B	1.99B	2.32B	2.78B
Revenue Growth %	0.04%	0.06%	-0.01%	0.17%	0.01%	-0.2%	0.1%	0.09%	0.16%	0.2%
Cost of Goods Sold+	1.43B	1.49B	1.45B	1.72B	1.8B	1.38B	1.51B	1.62B	1.88B	2.25B
COGS % of Revenue	0.86%	0.84%	0.83%	0.84%	0.87%	0.83%	0.83%	0.81%	0.81%	0.81%
Gross Profit+	236.9M	276.5M	294.6M	329.5M	269.2M	275.9M	313.2M	370.1M	442.3M	527.7M
Gross Margin %	0.14%	0.16%	0.17%	0.16%	0.13%	0.17%	0.17%	0.19%	0.19%	0.19%
Gross Profit Growth %	0.49%	0.17%	0.07%	0.12%	-0.18%	0.02%	0.14%	0.18%	0.2%	0.19%
Operating Expenses+	170.8M	196.7M	208.6M	231.2M	227.9M	190.9M	206.3M	236.2M	313.1M	342.5M
OpEx % of Revenue	0.1%	0.11%	0.12%	0.11%	0.11%	0.12%	0.11%	0.12%	0.14%	0.12%
Selling, General & Admin	170.8M	196.7M	208.6M	215.4M	220.6M	182.4M	202.2M	230.4M	280.2M	347.7M
SG&A % of Revenue	0.1%	0.11%	0.12%	0.1%	0.11%	0.11%	0.11%	0.12%	0.12%	0.13%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	-900K	15.8M	7.3M	8.5M	4.1M	5.8M	32.9M	-5.2M
Operating Income+	65.8M	79.6M	86M	98.3M	41.3M	85.2M	106.9M	133.9M	129.2M	185.2M
Operating Margin %	0.04%	0.05%	0.05%	0.05%	0.02%	0.05%	0.06%	0.07%	0.06%	0.07%
Operating Income Growth %	6.53%	0.21%	0.08%	0.14%	-0.58%	1.06%	0.25%	0.25%	-0.04%	0.43%
EBITDA+	116.9M	115.3M	126.5M	141.1M	85M	121.5M	140M	161.8M	170.4M	240.4M
EBITDA Margin %	0.07%	0.07%	0.07%	0.07%	0.04%	0.07%	0.08%	0.08%	0.07%	0.09%
EBITDA Growth %	0.04%	-0.01%	0.1%	0.12%	-0.4%	0.43%	0.15%	0.16%	0.05%	0.41%
D&A (Non-Cash Add-back)	51.1M	35.7M	40.5M	42.8M	43.7M	36.3M	33.1M	27.9M	41.2M	55.2M
EBIT	64.3M	82.3M	85.5M	99.6M	43.7M	36.8M	111.1M	133.4M	101.5M	114.3M
Net Interest Income+	-6.2M	-5.2M	-7.9M	-8.5M	-8.8M	-4.8M	-2.3M	-11.2M	-41M	-73.6M
Interest Income	200K	100K	100K	1M	500K	200K	100K	1M	2.2M	1.8M
Interest Expense	6.4M	5.3M	8M	9.5M	9.3M	5M	2.4M	12.2M	43.2M	75.4M
Other Income/Expense	-16.2M	-5.2M	-8.8M	-9.3M	-10.9M	-20.7M	-1.8M	-12.7M	-70.9M	-146.3M
Pretax Income+	59.3M	74.3M	77.2M	89M	30.4M	64.5M	105.1M	121.2M	58.3M	38.9M
Pretax Margin %	0.04%	0.04%	0.04%	0.04%	0.01%	0.04%	0.06%	0.06%	0.03%	0.01%
Income Tax+	18.8M	24.1M	3.5M	4.9M	5.6M	18.2M	26.6M	31.4M	12M	26.4M
Effective Tax Rate %	0.8%	0.76%	0.2%	0.08%	0.82%	0.56%	0.75%	0.74%	0.79%	0.32%
Net Income+	47.7M	56.5M	15.6M	7.5M	24.8M	35.8M	78.7M	90.2M	46.3M	12.5M
Net Margin %	0.03%	0.03%	0.01%	0%	0.01%	0.02%	0.04%	0.05%	0.02%	0%
Net Income Growth %	3.68%	0.18%	-0.72%	-0.52%	2.31%	0.44%	1.2%	0.15%	-0.49%	-0.73%
Net Income (Continuing)	45.5M	52M	73.7M	84.1M	24.8M	46.3M	78.5M	89.8M	46.3M	12.5M
Discontinued Operations	2.2M	4.5M	0	0	0	-10.5M	200K	400K	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	1.37	1.64	0.45	0.21	0.71	1.00	2.16	2.53	1.29	0.35
EPS Growth %	4.71%	0.2%	-0.73%	-0.53%	2.38%	0.41%	1.16%	0.17%	-0.49%	-0.73%
EPS (Basic)	1.37	1.66	0.46	0.22	0.71	1.01	2.19	2.56	1.30	0.35
Diluted Shares Outstanding	34.6M	34.3M	34.6M	34.9M	35M	35.3M	36M	35.1M	35.4M	35.8M
Basic Shares Outstanding	34.4M	33.9M	34.2M	34.5M	34.8M	35M	35.6M	34.7M	35.1M	35.6M
Dividend Payout Ratio	0.22%	0.18%	0.66%	1.4%	0.43%	0%	-	-	-	-

Balance Sheet

	May 2016	May 2017	May 2018	May 2019	May 2020	May 2021	May 2022	May 2023	May 2024	May 2025
Total Current Assets+	881.7M	888.4M	942.7M	952.5M	1.44B	937M	1.01B	1.1B	1.39B	1.51B
Cash & Short-Term Investments	31.2M	10.3M	31.1M	21.3M	404.7M	51.8M	53.5M	68.4M	85.8M	96.5M
Cash Only	31.2M	10.3M	31.1M	21.3M	404.7M	51.8M	53.5M	68.4M	85.8M	96.5M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	248.3M	234.5M	202M	257M	221.2M	238.6M	287.6M	328.2M	410.4M	495.1M
Days Sales Outstanding	54.51	48.42	42.17	45.72	38.97	52.71	57.68	60.18	64.6	64.99
Inventory	452M	433.4M	460.7M	523.7M	623.1M	540.6M	550.5M	574.1M	733.1M	809.2M
Days Inventory Outstanding	115.72	106.09	115.67	110.99	126.15	143.36	133.35	129.32	142.59	131.11
Other Current Assets	118.3M	184.5M	248.9M	150.5M	112.5M	78.3M	75.2M	77.5M	160.3M	109.8M
Total Non-Current Assets+	574.3M	615.7M	582M	564.7M	640.3M	602.7M	566.7M	735.2M	1.38B	1.33B
Property, Plant & Equipment	319.2M	117.2M	133.2M	132.8M	225.4M	195.8M	182.6M	189.8M	268.3M	251.8M
Fixed Asset Turnover	5.21x	15.08x	13.13x	15.45x	9.19x	8.44x	9.97x	10.49x	8.64x	11.04x
Goodwill	117.3M	105.6M	118.7M	116.2M	115.7M	119.3M	116.4M	175.8M	554.8M	530.8M
Intangible Assets	35.8M	30.6M	27.8M	22.2M	6M	4.5M	3.3M	63.7M	235.4M	219.6M
Long-Term Investments	17.6M	15M	7.6M	12.3M	17.8M	18.3M	24.5M	28M	50.2M	46.8M
Other Non-Current Assets	84.4M	347.3M	294.7M	281.2M	275.4M	264.8M	239.9M	277.9M	271.7M	285M
Total Assets+	1.46B	1.5B	1.52B	1.52B	2.08B	1.54B	1.57B	1.83B	2.77B	2.84B
Asset Turnover	1.14x	1.18x	1.15x	1.35x	1.00x	1.07x	1.16x	1.09x	0.84x	0.98x
Asset Growth %	0%	0.03%	0.01%	-0%	0.37%	-0.26%	0.02%	0.16%	0.51%	0.03%
Total Current Liabilities+	341.4M	335M	333.3M	357.5M	383.1M	336.8M	348.2M	351.5M	466.9M	554.7M
Accounts Payable	166.3M	164.2M	170M	187.8M	191.6M	127.2M	156.4M	158.5M	238M	303.1M
Days Payables Outstanding	42.58	40.19	42.68	39.8	38.79	33.73	37.89	35.7	46.29	49.11
Short-Term Debt	12M	100K	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	0	30.8M	25M	29.2M	29.9M	35.4M	17.2M	13.4M	9.6M	5.8M
Current Ratio	2.58x	2.65x	2.83x	2.66x	3.76x	2.78x	2.89x	3.12x	2.98x	2.72x
Quick Ratio	1.26x	1.36x	1.45x	1.20x	2.13x	1.18x	1.31x	1.49x	1.41x	1.26x
Cash Conversion Cycle	127.65	114.32	115.16	116.9	126.33	162.34	153.14	153.8	160.9	146.99
Total Non-Current Liabilities+	248.8M	254.9M	255.1M	253.8M	793.3M	228.5M	191.2M	382.5M	1.11B	1.08B
Long-Term Debt	136.1M	154.1M	177.2M	141.7M	600M	133.7M	98.9M	269.7M	985.4M	968M
Capital Lease Obligations	0	0	0	0	70.9M	59.9M	57.4M	48.2M	80.3M	79.6M
Deferred Tax Liabilities	34.3M	37.2M	15.7M	0	0	9.5M	20M	33.6M	23.9M	18.4M
Other Non-Current Liabilities	0	0	26.4M	28.3M	34.4M	20M	14.9M	31M	16.5M	5.9M
Total Liabilities	590.2M	589.9M	588.4M	611.3M	1.18B	565.3M	539.4M	734M	1.58B	1.63B
Total Debt+	148.1M	154.2M	177.2M	141.7M	670.9M	193.6M	156.3M	317.9M	1.07B	1.05B
Net Debt	116.9M	143.9M	146.1M	120.4M	266.2M	141.8M	102.8M	249.5M	979.9M	951.1M
Debt / Equity	0.17x	0.17x	0.19x	0.16x	0.74x	0.20x	0.15x	0.29x	0.90x	0.86x
Debt / EBITDA	1.27x	1.34x	1.40x	1.00x	7.89x	1.59x	1.12x	1.96x	6.25x	4.36x
Net Debt / EBITDA	1.00x	1.25x	1.15x	0.85x	3.13x	1.17x	0.73x	1.54x	5.75x	3.96x
Interest Coverage	10.28x	15.02x	10.75x	10.35x	4.44x	17.04x	44.54x	10.98x	2.99x	2.46x
Total Equity+	865.8M	914.2M	936.3M	905.9M	902.6M	974.4M	1.03B	1.1B	1.19B	1.21B
Equity Growth %	0.02%	0.06%	0.02%	-0.03%	-0%	0.08%	0.06%	0.06%	0.08%	0.02%
Book Value per Share	25.02	26.65	27.06	25.96	25.79	27.60	28.74	31.31	33.61	33.84
Total Shareholders' Equity	865.8M	914.2M	936.3M	905.9M	902.6M	974.4M	1.03B	1.1B	1.19B	1.21B
Common Stock	44.9M	45.2M	45.3M	45.3M	45.3M	45.3M	45.3M	45.3M	45.3M	45.3M
Retained Earnings	681.6M	727.9M	733.2M	709.8M	706M	741.7M	820.4M	910.6M	956.9M	969.4M
Treasury Stock	-267.6M	-279.8M	-280.7M	-287.7M	-282.7M	-274.1M	-289.1M	-317.8M	-297.5M	-302.7M
Accumulated OCI	-44.4M	-39.9M	-32M	-40.9M	-44.6M	-18.3M	-19.6M	-23.5M	-8.8M	-5.6M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	May 2016	May 2017	May 2018	May 2019	May 2020	May 2021	May 2022	May 2023	May 2024	May 2025
Cash from Operations+	32.1M	21.8M	64.3M	67.4M	-36.1M	105.2M	75.2M	23.3M	43.6M	36.1M
Operating CF Margin %	0.02%	0.01%	0.04%	0.03%	-0.02%	0.06%	0.04%	0.01%	0.02%	0.01%
Operating CF Growth %	1.75%	-0.32%	1.95%	0.05%	-1.54%	3.91%	-0.29%	-0.69%	0.87%	-0.17%
Net Income	40.5M	50.2M	73.7M	84.1M	24.8M	46.3M	78.5M	89.8M	46.3M	12.5M
Depreciation & Amortization	70.8M	71M	40.5M	42.8M	43.7M	36.3M	33.1M	27.9M	41.2M	55.2M
Stock-Based Compensation	6.7M	11M	15.3M	13.5M	7.3M	9.2M	8.2M	13.5M	15.3M	19.9M
Deferred Taxes	4.8M	600K	-12.9M	-5M	500K	8.4M	8.7M	-2.2M	-20.5M	-5.5M
Other Non-Cash Items	2.1M	-5M	8.5M	27.7M	27.3M	28.3M	-16.1M	5.3M	27.4M	66.3M
Working Capital Changes	-92.8M	-106M	-60.8M	-95.7M	-139.7M	-23.3M	-37.2M	-111M	-66.1M	-112.3M
Change in Receivables	-16.1M	-4M	35.9M	-34.4M	14.8M	-4.5M	-49M	-18.1M	-22.4M	-109.4M
Change in Inventory	-26.4M	-18.8M	-25.8M	-80.9M	-94.5M	74.9M	-10.4M	-23.6M	-90.4M	-109.3M
Change in Payables	19.4M	14.1M	1.8M	17.5M	4.1M	-62.6M	29.4M	-48M	59.4M	70.5M
Cash from Investing+	-16.9M	-30.1M	-42.9M	-19M	-24.8M	-500K	-16.5M	-138M	-758.5M	10.7M
Capital Expenditures	-88.4M	-33.6M	-22M	-17.4M	-23.6M	-11.3M	-17.3M	-29.5M	-29.7M	0
CapEx % of Revenue	0.05%	0.02%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	71.5M	16M	2M	700K	-2.8M	10M	7.3M	-5.2M	-5.9M	10.7M
Cash from Financing+	-38.4M	-12.1M	10M	-48.7M	444.5M	-469.5M	-59.8M	137.7M	729.2M	-33.7M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-10.4M	-10.2M	-10.3M	-10.5M	-10.7M	-100K	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	1.4M	6.9M	9.6M	7.1M	-200K	0	16.8M	15.8M	9.3M	-3.6M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	-56.3M	-11.8M	42.3M	50M	-59.7M	93.9M	57.9M	-6.2M	13.9M	1.4M
FCF Margin %	-0.03%	-0.01%	0.02%	0.02%	-0.03%	0.06%	0.03%	-0%	0.01%	0%
FCF Growth %	0.37%	0.79%	4.58%	0.18%	-2.19%	2.57%	-0.38%	-1.11%	3.24%	-0.9%
FCF per Share	-1.63	-0.34	1.22	1.43	-1.71	2.66	1.61	-0.18	0.39	0.04
FCF Conversion (FCF/Net Income)	0.67x	0.39x	4.12x	8.99x	-1.46x	2.94x	0.96x	0.26x	0.94x	2.89x
Interest Paid	4.7M	4.4M	7.2M	8.8M	0	0	2.1M	11.1M	31.9M	74.4M
Taxes Paid	35.7M	12.7M	17M	7M	0	0	23.9M	35.7M	42.4M	24.2M

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	5.58%	6.35%	1.69%	0.81%	2.74%	3.81%	7.84%	8.46%	4.05%	1.04%
Return on Invested Capital (ROIC)	5.13%	5.85%	6.03%	6.99%	2.82%	5.59%	7.12%	8.08%	5.51%	6.41%
Gross Margin	14.25%	15.64%	16.85%	16.06%	12.99%	16.7%	17.21%	18.59%	19.07%	18.98%
Net Margin	2.87%	3.2%	0.89%	0.37%	1.2%	2.17%	4.32%	4.53%	2%	0.45%
Debt / Equity	0.17x	0.17x	0.19x	0.16x	0.74x	0.20x	0.15x	0.29x	0.90x	0.86x
Interest Coverage	10.28x	15.02x	10.75x	10.35x	4.44x	17.04x	44.54x	10.98x	2.99x	2.46x
FCF Conversion	0.67x	0.39x	4.12x	8.99x	-1.46x	2.94x	0.96x	0.26x	0.94x	2.89x
Revenue Growth	4.28%	6.32%	-1.09%	17.36%	0.98%	-20.26%	10.15%	9.37%	16.5%	19.91%

Revenue by Segment

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Product	-	-	-	-	-	-	-	-	1.37B	1.71B
Product Growth	-	-	-	-	-	-	-	-	-	25.14%
Service	-	-	-	-	-	-	-	-	950.6M	1.07B
Service Growth	-	-	-	-	-	-	-	-	-	12.37%
Aviation Supply Chain	903.2M	998.7M	1.07B	1.4B	1.43B	1.17B	-	1.37B	-	-
Aviation Supply Chain Growth	-	10.57%	6.74%	30.88%	2.80%	-18.24%	-	-	-	-
Mobility Products	64.2M	105.4M	112.5M	131.2M	107.8M	98.6M	-	91.8M	-	-
Mobility Products Growth	-	64.17%	6.74%	16.62%	-17.84%	-8.53%	-	-	-	-
Aviation supply chain	-	-	-	-	-	-	1.28B	-	-	-
Aviation supply chain Growth	-	-	-	-	-	-	-	-	-	-
Mobility products	-	-	-	-	-	-	74.2M	-	-	-
Mobility products Growth	-	-	-	-	-	-	-	-	-	-
Maintenance Repairs And Overhaul Services	521.8M	486.7M	552.9M	525.4M	529.9M	381M	-	-	-	-
Maintenance Repairs And Overhaul Services Growth	-	-6.73%	13.60%	-4.97%	0.86%	-28.10%	-	-	-	-
Airlift	-	-	16.9M	-	-	-	-	-	-	-
Airlift Growth	-	-	-	-	-	-	-	-	-	-
Expeditionary Airlift Services	173.4M	176.8M	-	-	-	-	-	-	-	-
Expeditionary Airlift Services Growth	-	1.96%	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

AAR Corp. (AIR) has a price-to-earnings (P/E) ratio of 302.1x. This suggests investors expect higher future growth.

Growth & Financials

AAR Corp. (AIR) reported $2.97B in revenue for fiscal year 2025. This represents a 44% increase from $2.06B in 2012.

AAR Corp. (AIR) grew revenue by 19.9% over the past year. This is strong growth.

Yes, AAR Corp. (AIR) is profitable, generating $94.1M in net income for fiscal year 2025 (0.4% net margin).

Dividend & Returns

AAR Corp. (AIR) has a return on equity (ROE) of 1.0%. This is below average, suggesting room for improvement.

AAR Corp. (AIR) had negative free cash flow of $33.2M in fiscal year 2025, likely due to heavy capital investments.

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