Examining the Future: AAR's Earnings Outlook

AAR (NYSE:AIR) is preparing to release its quarterly earnings on Tuesday, 2026-01-06. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect AAR to report an earnings per share (EPS) of $1.03.

The announcement from AAR is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

Last quarter the company beat EPS by $0.10, which was followed by a 4.17% increase in the share price the next day.

Here's a look at AAR's past performance and the resulting price change:

Quarter	Q1 2026	Q4 2025	Q3 2025	Q2 2025
EPS Estimate	0.98	1.00	0.96	0.84
EPS Actual	1.08	1.16	0.99	0.90
Price Change %	4.00	14.00	-16.00	9.00

Tracking AAR's Stock Performance

Shares of AAR were trading at $84.45 as of January 02. Over the last 52-week period, shares are up 36.76%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on AAR

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on AAR.

Analysts have provided AAR with 2 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $95.0, suggesting a potential 12.49% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Firefly Aerospace, VSE and Mercury System, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Firefly Aerospace, with an average 1-year price target of $28.8, suggesting a potential 65.9% downside.
• Analysts currently favor an Buy trajectory for VSE, with an average 1-year price target of $201.8, suggesting a potential 138.96% upside.
• Analysts currently favor an Buy trajectory for Mercury System, with an average 1-year price target of $100.0, suggesting a potential 18.41% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Firefly Aerospace, VSE and Mercury System, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
AAR	Buy	11.77%	$133.70M	2.80%
Firefly Aerospace	Buy	37.59%	$8.49M	-910.70%
VSE	Buy	38.92%	$34.05M	0.40%
Mercury System	Buy	10.16%	$62.90M	-0.85%

Key Takeaway:

AAR ranks at the top for Revenue Growth among its peers. It is at the bottom for Gross Profit. AAR is at the top for Consensus. AAR is at the bottom for Return on Equity.

Unveiling the Story Behind AAR

AAR Corp is engaged in providing products and services to aviation, government and defense market. It operates in segments namely: The parts supply segment majorly consists of sales and leasing of USM and aftermarket distribution of new, OEM-supplied replacement parts; Repair & Engineering segment provides airframe maintenance, component repair, and landing gear overhaul services; Integrated Solutions segment consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense, flight hour component inventory; and The Expeditionary Services segment consists of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and NGOs.

A Deep Dive into AAR's Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining AAR's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.77% as of 31 August, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: AAR's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.65% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.8%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.19%, the company showcases effective utilization of assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.88, caution is advised due to increased financial risk.

To track all earnings releases for AAR visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.