AAR shares fall despite Q4 results beat

AAR Corp. (AIR) shares fell over 9% despite reporting better-than-expected fourth-quarter results, as investors focused on the company's fiscal 2027 outlook.

For the fourth quarter ended May 31, 2026, AAR reported adjusted earnings of $1.53/share, beating estimates by $0.15, while revenue rose 23% year over year to $928M, surpassing consensus by $33.4M. Adjusted EBITDA increased 27% to $116M, with the margin improving to 12.5%.

Growth was driven by strong demand across the company's parts, repair and software businesses. Parts Supply revenue jumped 39%, while the Repair, Engineering and Software segment benefited from higher maintenance volumes and recurring software revenue.

For fiscal 2027, AAR expects first-quarter sales growth, excluding its Legacy Commercial Programs business, of 21% to 23%, with adjusted EBITDA margins of 12.25% to 12.75%.

For the full year, management forecast sales growth excluding LCP in the low-double-digit to low-teens range. CEO John Holmes said recent acquisitions, including HAECO Americas, are integrating ahead of schedule and should support future margin expansion through synergies.

However, investors appeared to focus on the company's measured growth outlook and near-term integration-related margin pressure.