The strong beat and raised guidance signal accelerating demand in the aviation aftermarket. The MRO Holdings acquisition, if completed, could drive a step-change in scale and margins — monitor the deal's regulatory approval timeline and integration updates on the next earnings call.
Price Chart
Executive Summary
AAR reported Q1 FY2027 adjusted EPS of $1.49, a 38% YoY increase and an 18.6% beat vs the $1.29 consensus. Revenue of $918M grew 24% YoY, also above the $880M estimate. The company guided for low-teens full-year sales growth (ex-LCP) and raised adjusted EBITDA margin guidance to 13.0-13.4% for Q2. Separately, AAR announced a definitive agreement to acquire a 65% controlling interest in MRO Holdings, a strategically significant deal that should accelerate its aftermarket platform scale.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS of $1.49 vs consensus $1.29 (+18.6% beat)
- Revenue of $918M vs consensus $880M (+4.3% beat), up 24% YoY
- Adjusted EBITDA of $116.5M, up 34% YoY; adjusted EBITDA margin expanded 100 bps to 12.7%
- Organic sales growth of 10.8% (ex-acquisitions)
- Cash from operations of $55.8M; net leverage reduced to 1.81x
- Full-year FY2027 sales growth guidance raised to low-teens (from low double-digits to low teens)
- Announced agreement to acquire 65% controlling interest in MRO Holdings
Financial Impact
EPS beat of $0.20 (18.6%) on $38M revenue beat (4.3%); adjusted EBITDA margin up 100 bps to 12.7%
Risk Factors
- MRO Holdings acquisition may not close or may be delayed; integration risks could dilute near-term margins
- Guidance excludes MRO Holdings impact — actual results may differ materially if deal closes mid-year
- GAAP operating margin declined to 7.9% from 8.8% due to elevated acquisition-related expenses ($19.6M vs $4.4M)
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302891946 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 8-K | $96.07 | awaiting T+1 | — | $97.34 (+1.32%) |
Oct 26, 2026 today | 144 | $97.34 | awaiting T+1 | — | $97.34 (−0.00%) |
Oct 26, 2026 today | 8-K | $94.67 | awaiting T+1 | — | $97.34 (+2.82%) |
Oct 20, 2026 6d ago | 144 | $99.64 $96.67 | ▼ −2.98% | ▼ −1.80% | $97.34 (−2.31%) |
Sep 28, 2026 28d ago | 8-K | $106.75 $101.47 | ▼ −4.95% | ▼ −4.74% | $97.34 (−8.81%) |
Sep 28, 2026 28d ago | Press Release | $106.75 $101.47 | ▼ −4.95% | ▼ −4.74% | $97.34 (−8.81%) |
Sep 24, 2026 4w ago | 8-K | $120.56 $116.11 | ▼ −3.69% | ▼ −4.23% | $97.34 (−19.26%) |
Sep 15, 2026 5w ago | Press Release | $117.23 | awaiting T+1 | — | $97.34 (−16.97%) |
Aug 10, 2026 11w ago | DEFA14A | $142.69 $145.45 | ▲ +1.93% | ▲ +2.25% | $97.34 (−31.78%) |
Aug 4, 2026 11w ago | DEFA14A | $149.43 $146.83 | ▼ −1.74% | ▼ −1.54% | $97.34 (−34.86%) |
US Market Status
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