AAR CORP. (AIR) FinancialsAIRFinancialAAR CORP.

AAR CORP. (AIR) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Parts Supply, accounting for 46.4% of total sales, equivalent to $392.50M. Other significant revenue streams include Repair & Engineering and Integrated Solutions. Understanding this composition is critical for investors evaluating how AIR navigates market cycles within the Aerospace & Defense industry.

Evaluating the bottom line, AAR CORP. maintains a gross margin of 19.04%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 7.74%, while the net margin is 5.46%. These profitability ratios, combined with a Return on Equity (ROE) of 12.88%, provide a clear picture of how effectively AIR converts its operational activities into shareholder value.

In the context of the broader market, AIR competes directly with industry leaders such as MRCY and AMTM. With a market capitalization of $5.85B, it holds a leading position in the sector. When comparing efficiency, AIR's gross margin of 19.04% stands against MRCY's 27.33% and AMTM's 7.62%. Such benchmarking helps identify whether AAR CORP. is trading at a premium or discount relative to its financial performance.

AAR Corp has shown strong revenue growth, with total revenue increasing from $661.7 million in Q1 2025 to $928 million in Q4 2026. The net income has also improved significantly, reaching $68 million in Q3 2026, up from a loss of $30.6 million in Q2 2025. However, the gross margin has fluctuated, currently at 19.04%.