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AIR: European Service Agreement And Lock-Up Period Will Shape Earnings Outlook

AIR: Service Center Expansion And Military Agreements Will Support Steady Performance

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AIR
AnalystConsensusTarget
Not Invested
Published 24 Sep 2024

Update shared on 01 Dec 2025

Fair value Increased 1.37%
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AnalystConsensusTarget's Fair Value
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1Y
32.4%
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1.2%

Analysts have slightly increased their price target for AAR from $91.00 to $92.25, citing improved profit margin forecasts despite a modest slowing in projected revenue growth.

What's in the News

  • AAR Corp. and Eaton have signed an agreement that makes AAR an authorized service center for Eaton’s commercial aerospace customers in Europe, the Middle East, and Africa. The initial focus will be on hydraulic pump repairs, with plans to expand the offering in the future (Client Announcements).
  • The company’s executive officers and directors are subject to a lock-up agreement restricting transactions for 61 days, from September 30, 2025 to November 30, 2025. This agreement covers 36,112,491 shares of common stock (End of Lock-Up Period).
  • AAR Corp. has completed a follow-on equity offering totaling $249 million, with 3,000,000 shares of common stock issued at $83 per share (Follow-on Equity Offerings).
  • No shares were repurchased from June to August 2025. However, the company has finished a prior buyback program totaling 2,429,700 shares, or 6.97% of outstanding shares, for $107.54 million (Buyback Tranche Update).
  • AAR has secured a new contract from the Defense Logistics Agency Troop Support to provide mobility solutions, with a potential value of up to $85 million over five years (Client Announcements).

Valuation Changes

  • Consensus Analyst Price Target has risen slightly from $91.00 to $92.25.
  • Discount Rate has decreased marginally from 8.21% to 8.20%.
  • Revenue Growth forecast has declined from 9.81% to 9.28%.
  • Net Profit Margin has increased from 7.97% to 8.16%.
  • Future P/E has edged up from 13.76x to 13.82x.

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Disclaimer

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