AAR Corp. (NYSE:AIR) Surpasses Earnings Estimates in Q1 Fiscal Year 2026

• AAR Corp. reported earnings per share (EPS) of $1.08, beating the Zacks Consensus Estimate.
• The company's revenue reached approximately $739.6 million, indicating strong market position and effective business strategies.
• Despite a high P/E ratio, AAR Corp. maintains a moderate debt-to-equity ratio of around 0.86 and a strong current ratio, suggesting a balanced approach to leveraging debt and a strong ability to cover short-term liabilities.

AAR Corp. (NYSE:AIR), headquartered in Wood Dale, Illinois, is a prominent player in the aviation services industry. The company provides a range of products and services, including maintenance, repair, and overhaul (MRO) services, as well as supply chain solutions. AAR competes with other major firms in the sector, such as Boeing and Lockheed Martin, offering specialized services to commercial and government customers.

On September 23, 2025, AAR Corp. reported impressive financial results for the first quarter of fiscal year 2026. The company achieved earnings per share (EPS) of $1.08, surpassing the Zacks Consensus Estimate of $0.98. This performance also marks a significant improvement from the previous year's EPS of $0.85, showcasing the company's growth trajectory.

AAR Corp. also reported a revenue of approximately $739.6 million, exceeding the estimated $720.3 million. This revenue growth reflects the company's strong market position and effective business strategies. The company's price-to-sales ratio of about 1.01 suggests that the market values its sales slightly higher than its actual sales revenue, indicating investor confidence in its future prospects.

Despite a high price-to-earnings (P/E) ratio of approximately 221.89, AAR Corp. maintains a moderate debt-to-equity ratio of around 0.86. This suggests a balanced approach to leveraging debt while maintaining equity, which can be beneficial for long-term growth. Additionally, the company's current ratio of about 2.72 indicates a strong ability to cover short-term liabilities with its short-term assets.

The enterprise value to operating cash flow ratio stands at a notably high 104.40, which may indicate that the company's cash flow is relatively low compared to its overall valuation. However, the earnings yield of approximately 0.45% provides insight into the return on investment, offering a perspective on the company's profitability relative to its stock price.