Reading AIR? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
Track AIR free→
AIR
AAR CORP.NYSEIndustrialsAerospace & DefenseSnapshot 2026-06-12
$129.01+1.40%
Close 2026-06-12 · 1-day change
The bottom line
Recent financial performance is weak, and earnings quality is fragile, reported profits aren't backed by cash. Management's recent track record has been steady, but risk is elevated, and the sector backdrop is a headwind. Peer multiples imply a price about 29% above where it trades (it looks cheap on this basis); the read is cheap, value-trap risk, as it trades below peer multiples while recent financials are weak. If AIR cuts guidance on the next call, that could be a meaningful negative. This read is provisional.
as of 2026-06-12
Quick facts
- Exchange
- NYSE
- Sector
- Industrials
- Industry
- Aerospace & Defense
- Market cap
- $5.06B
- Employees
- 5,600
- IPO date
- 1994-01-13
- Next earnings
- 2026-07-15
Price
Daily closes. Earnings/event dots are placed inline.
Adjusted daily closes (split & dividend). Scroll over the chart to zoom; click a range to reset.
EarningsMaterial event
What's priced in
(what the market already expects)What it's worth (estimated)
A consensus fair price across 6 valuation methods, at three horizons. Current price $129.01. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
12-month· primaryinexpensive
$181.24consensus
Range $117.08 – $225.30
vs price: -29% below
Method agreement — · 6 methods
No-growth: today's peer multiple on trailing earnings. The headline read.
3-yearinexpensive
$376.36consensus
Range $284.79 – $462.96
vs price: -66% below
Method agreement — · 4 methods
Embeds projected growth. Leans optimistic by design. Upside context.
5-yearinexpensive
How much to trust our fair value
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
Cheap vs peershigh confidence
At $129 AIR trades at 28× p/e, below its 38× p/e peer median. Our $181 fair value sits above the price; high confidence. Not investment advice.
Multiple (P/E)
27.6x
peer 38.2x · own history 20.7x
Premium
0.7x peer
1.3x its own history
Growth the price needs
-29%
our forecast 11%
Our fair value
$181.24
range $117.08 – $225.30
How this stock is priced
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
Long-term · 1–3 yr
inexpensivecheap — value-trap risk12-month view
What's priced inJustified
The price implies about 29% below a flat-multiple fair value, below our forecast of about 11%. This describes what's priced in, not a forecast of the move.
Low fragilityrisk posture, not a price call
Only weak execution quality — not the full expensive x weak x turbulent stack.
Historical context
For similar setups historically (n=20,154): about 33% saw a 20%+ drawdown, and roughly 76% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
How strong is the business
(quality & execution)Factor signals
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Recent financial performance
Not enough signal yet.
Earnings quality
fragileOver the trailing year it converted 0.55x of net income into operating cash flow. Historically, Industrials names rated fragile grew net income 56% of the time over the next year (vs 60% for the rest of the cohort, n=3333).
9th pctl · Industrials
Macro sensitivity
Most sensitive to the broad stock market.
- the broad stock market: This stock moves with the broad market (high beta).
Not enough signal to read sensitivity to the US dollar, Fed net liquidity, real (inflation-adjusted) rates, long-term interest rates.
Management & capital allocation
stable1 material management or governance event in the past 24 months, led by strategy shifts. Historically, Industrials names rated stable grew net income 60% of the time over the next year (vs 59% for the rest of the cohort, n=792).
Earnings setup & market context
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
Earnings setup · pre-print positioning
forward-looking
Strongly bearish3 analysts, 86% Buyfor period ending 2026-08-31
Why this setup
Consensus revisions
EPS estimate $1.29 → $1.28 (-0.5% / 30d). 0 raised, 1 cut, 3 covering analysts.
Rating actions
0 upgrades, 0 downgrades / 30d. 86% of analysts rate Buy.
Sector context
Intermediate · WeeklySector phase: industrials is in maturing, with decelerating (~3.2 years in phase).
Sector regime (90d momentum): headwind.Secular epoch: Growth by revenue growth · theme aerospace-recovery.Management scorecard
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Long-term · 1–3 yr
Overall: neutralProvisional
- Capital allocation
- neutral
- Earnings discipline
- strong
- Balance sheet
- weak
- Post-call reaction
- strong
A guidance track record builds as the company issues and delivers on guidance.
as of 2026-06-12
How bumpy is the path
(risk while you hold it)Risk: how this stock moves
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
Intermediate · WeeklyLong-term · 1–3 yr
On a typical day, $10k can swing ±$178.
How much price usually moves either way.
On a bad day, this stock has moved -$373.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $1,992.
Deepest peak-to-trough drop in the last year.
elevatedas of 2026-06-12
Past results, not a forecast. Not investment advice.
What would change the read
(catalysts & re-read triggers)What changed
The most important moves since the prior daily snapshot.
Short-term · Daily
- No material changes since the prior snapshot.
No material changes since the prior snapshot.
as of 2026-06-12
What to watch next
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
Intermediate · Weekly
- UpsideHigh confidenceQuartersactive 7d
Watch for Q3 gross profit margin improvement
Why it matters: Better gross profit margins show good cost management. This helps the company's financial health.
What confirms / what disproves
Confirms:Gross profit margin increases by more than 2% compared to the previous quarter.
Disproves:Gross profit margin declines or remains flat compared to the previous quarter.
Management priorities
News catalysts
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
No graded news catalysts for AIR yet.
This sector is also watching
- Watch for revenue growth speeding up in Industrials.
What could change this view
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
Intermediate · Weekly
Upside triggers
- If sector bellwethers like GE, RTX, and BA keep beating earnings and guiding higher, the Industrials sector momentum should keep lifting AIR and other Industrials names. Worth watching these names for early signals.
- If AIR raises forward guidance on the next earnings call (currently NEW as of 2026-03-24), that's a momentum boost. Street estimates typically follow guidance up and the stock tends to re-rate higher.
Downside triggers
- If AIR cuts guidance on the next call (currently NEW as of 2026-03-24), that's a meaningful negative. The Street tends to walk down estimates and the stock usually takes a leg lower.
- If sector bellwethers like GE, RTX, and BA start missing or guiding lower, the Industrials tailwind helping AIR and other Industrials names could fade. Watch these names for early warning.
- If GDP growth slows materially from the current 2.6% (say, below 2%), it hits AIR and other Industrials names harder than the average stock, since the sector is growth-sensitive.
Recent events
(material 8-K / filing activity)Material updates
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
- 2026-05-061mo agoItem 7.01
Regulation FD Disclosure. On May 6, 2026, AAR CORP. (the “Company”) announced a change to its operating segments and the wind-down of its Commercial Programs business. During the fourth quarter of fiscal 2026, our chief operating decision maker (“CODM”) implemented changes in how he organizes the business, allocates resources, and assesses performance. Specifically, the business units within our Integrated Solutions segment have been realigned, resulting in the following changes: · Combine ou…
Product or strategy shiftnegative
Score history
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
+5.4 vs last weeklatest as of 2026-06-13
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.