AAR Corp. (AIR) Stock Price & How to Invest
Short answer
AAR Corp (NYSE: AIR) is a pure-play aviation aftermarket and services company (parts supply, MRO, and government/defense logistics), so buying AIR is a bet on rising commercial flight hours and an aging global fleet that needs more repairs and spare parts. It trades like a growth-y industrial services name, not a deep-value aerospace supplier.
AIR stock price
As of 2026-07-08, AAR Corp. (AIR) last closed at $133.30, up 82.0% over the past year. Over the past 52 weeks it has traded between $71.73 and $143.61.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or AAR Corp.'s investor relations page. Walnut is informational, not investment advice.
What does AAR Corp. (AIR) do?
AAR Corp is a leading independent provider of aviation services to commercial airlines, government and defense operators, MRO shops, and OEMs. It operates across four segments: Parts Supply (selling and leasing used serviceable material and new parts), Repair & Engineering (airframe and component maintenance), Integrated Solutions (including the Trax cloud MRO software platform and government logistics programs), and Expeditionary Services (mobility and pallet products). The business is squarely an aftermarket story: it makes money keeping existing aircraft flying rather than building new ones, which gives it exposure to global flight hours, fleet age, and defense sustainment budgets.
The investment picture in fiscal 2026 has been one of accelerating growth. Quarterly sales rose from roughly $740 million in Q1 to about $795 million in Q2 to roughly $845 million in Q3, with double-digit organic growth and expanding adjusted EBITDA and EPS. The market has rewarded that with a premium multiple (around 30x earnings), so the debate for investors is whether AAR can keep compounding through parts-supply demand, USM (used serviceable material) sourcing, and margin gains from its higher-value repair and software businesses, or whether a slowdown in air travel, defense spending, or parts availability would compress both growth and the multiple.
What's driving AAR Corp. (AIR)?
1. Aging global fleet and record flight activity
Airlines are flying older aircraft longer as new-jet deliveries from Boeing and Airbus stay constrained, which drives more maintenance events and higher demand for spare and used serviceable parts. AAR's Parts Supply segment has been the primary growth engine, benefiting directly from tight parts availability and elevated flight hours.
2. Shift toward higher-value repair and software
AAR has been leaning into component repair capacity, new hangar capacity, and its Trax cloud MRO software, all of which carry richer margins than pure parts distribution. Continued mix shift toward Repair & Engineering and Integrated Solutions supports the adjusted EBITDA and EPS growth investors have seen through fiscal 2026.
3. Government and defense sustainment
A meaningful portion of revenue comes from serving government and defense operators through logistics, distribution, and expeditionary programs. Steady or rising defense sustainment budgets and program wins can provide a more stable, less cyclical revenue layer alongside the commercial aftermarket.
4. Integration of acquisitions and USM sourcing
AAR has expanded through acquisitions (including the Product Support / Triumph parts business) and depends on sourcing whole aircraft and engines to feed its used-serviceable-material pipeline. Successful integration and access to teardown feedstock are levers for continued organic growth.
What are the risks to AAR Corp. (AIR)?
AIR is cyclical: a downturn in air travel, airline capacity cuts, or a recession would reduce flight hours and maintenance demand. The stock's premium multiple (around 30x earnings as of July 2026) leaves little margin for error if growth decelerates or margins slip. AAR carries acquisition-related debt, so higher interest costs weigh on net income, and integration missteps could pressure returns. It also depends on sourcing used serviceable material, which can tighten when part-out feedstock is scarce. Finally, exposure to government contracts brings budget and program-timing risk, and past legacy compliance matters remind investors that regulatory and contract risk is real.
How is AAR Corp. (AIR) valued? (approximate, JULY 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see AAR Corp.'s investor relations page or your broker.
- Revenue (TTM): ~$3.1B
- Q3 FY2026 sales: ~$845M (up ~25% YoY)
- Q3 FY2026 adj. EPS: ~$1.25 (up ~26% YoY)
- Market cap: ~$5.6B
- P/E ratio: ~31x
- Share price: ~$140
AAR posted accelerating growth through fiscal 2026, with quarterly sales climbing from roughly $740M to about $845M and adjusted EBITDA and EPS growing at double-digit rates. Management guided full-year fiscal 2026 to roughly 19% total sales growth and about 12% organic growth. The roughly 31x earnings multiple reflects those expectations, so the valuation embeds continued execution.
Who competes with AAR Corp. (AIR)?
Independent MRO and aftermarket parts providers
StandardAero, Chromalloy, and Aviation Technical Services compete directly for airframe and component maintenance and used-serviceable-material supply. These are AAR's closest peers in the day-to-day aftermarket services business.
Diversified aerospace aftermarket suppliers
HEICO and TransDigm supply replacement parts and repair services with strong margins and scale. They overlap with AAR's parts business and are often the higher-multiple, higher-margin benchmarks investors compare against.
Defense and government logistics contractors
ST Engineering, Kratos Defense, and units of larger primes compete for government sustainment, mobility, and logistics work. These players contest the defense-facing portion of AAR's Integrated Solutions and Expeditionary Services segments.
How to invest in AAR Corp. (AIR)
There are three common ways to get AIR exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so AIR sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where AIR fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
The bottom line on AAR Corp. (AIR)
AIR is a focused aviation aftermarket play riding fleet aging and record flight activity, and it now carries a growth multiple that leaves little room for execution slips.
More on AAR Corp. (AIR)
Whether AIR is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is AIR a buy?, and where the stock could go from here in the AIR stock forecast.
For income investors, whether AIR pays a dividend and how the payout looks is covered in does AIR pay a dividend?
Build a basket around AIR with Walnut
Use AAR Corp. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does AAR Corp do?
+
AAR Corp is an independent aviation services company. It supplies and leases aircraft parts, performs airframe and component maintenance (MRO), sells MRO software through its Trax platform, and provides logistics and expeditionary services to commercial airlines, governments, MROs, and OEMs.
Is AIR the same as AAR Corp?
+
Yes. AIR is the New York Stock Exchange ticker symbol for AAR Corp. The similarity is coincidental; AAR is not an airline, it is an aviation aftermarket and services provider.
How does AAR Corp make money?
+
Most revenue comes from the aftermarket: selling and leasing spare and used serviceable parts, repairing airframes and components, running government logistics programs, and licensing its Trax MRO software. It profits from keeping existing aircraft flying rather than building new ones.
What are AAR Corp's business segments?
+
AAR reports four segments: Parts Supply, Repair & Engineering, Integrated Solutions (including Trax software and government programs), and Expeditionary Services (mobility and pallet products). Parts Supply has been the largest growth driver in fiscal 2026.
How has AAR performed in fiscal 2026?
+
Growth accelerated through the year, with quarterly sales rising from roughly $740M in Q1 to about $845M in Q3 (up around 25% year over year), and adjusted EPS and EBITDA growing at double-digit rates. Management guided to roughly 19% full-year sales growth.
Is AIR stock expensive?
+
As of July 2026, AIR traded around $140 with a market cap near $5.6B and a P/E around 31x. That is a premium multiple for an aerospace services company, reflecting expectations of continued double-digit growth.
Who are AAR Corp's main competitors?
+
In aftermarket parts and MRO it competes with StandardAero, Chromalloy, and Aviation Technical Services; in diversified aftermarket supply with HEICO and TransDigm; and in government logistics with firms like ST Engineering and Kratos Defense.
What are the main risks to AAR Corp?
+
Key risks include a downturn in air travel or airline capacity that reduces maintenance demand, the premium valuation compressing if growth slows, acquisition-related debt and interest costs, tight availability of used-serviceable-material feedstock, and government budget or contract timing risk.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with AAR Corp.'s investor relations page or your broker before making investment decisions.