A plain-English look at AAR Corp's business, revenue, margins, and market value based on public filings and market data.
A Company Built Around Keeping Planes Flying
When a commercial jet needs a replacement part at 2 a.m. or a military transport plane needs its landing gear overhauled, there's a good chance AAR Corp is somewhere in that story. Founded in 1951 and headquartered in Wood Dale, Illinois, the company has spent decades building a business around the unglamorous but essential work of supplying parts, repairing aircraft, and managing logistics for aviation, government, and defense customers.
What the Company Actually Does
AAR Corp organizes its work into a few core segments. Its parts supply business sells and leases used serviceable material and distributes new OEM-supplied replacement parts. Its repair and engineering segment handles airframe maintenance, component repair, and landing gear overhaul. A third piece, integrated solutions, manages customer-owned aircraft fleets and runs performance-based supply chain logistics programs, including work supporting the U.S. Department of Defense.
Sizing Up the Business
In fiscal year 2018, AAR Corp generated $1.7 billion in revenue. That's a meaningful scale for a company most people outside the aviation industry have never heard of, reflecting just how much specialized work goes into keeping the world's aircraft — commercial and military — flying safely.
Profit on a Thin Margin
Despite that revenue base, net income in fiscal 2018 came in at $12.5 million. The company's gross margin sits at 19.0%, while its net margin is just 0.4%. In plain terms, AAR Corp keeps only a small sliver of each dollar of revenue as profit after all costs — a pattern common in parts distribution and maintenance businesses, where volume is high but margins are typically slim.
Growth Over Recent Years
One of the more notable figures in AAR Corp's recent history is growth: revenue climbed 68% from fiscal year 2021 to fiscal year 2025. That's a substantial expansion over a four-year stretch, suggesting the aviation and defense supply work the company does has been in increasing demand during that period.
What the Balance Sheet Shows
AAR Corp holds $2.8 billion in total assets, a figure that reflects the parts inventories, equipment, and infrastructure needed to support its aftermarket and repair operations. Assets on this scale are typical for a company that leases and stockpiles aircraft components across a global customer base.
How the Market Values the Company
AAR Corp trades on the New York Stock Exchange under the ticker AIR. Its market capitalization stands at $4.6 billion, and its recent share price was $127.60, based on 15-minute delayed data. The stock is currently trading 11% below its 52-week high.
A Closer Look at the Valuation
The company's price-to-earnings ratio is 364.6, a figure that stands in sharp contrast to its modest net income. A P/E ratio this high generally means the market is pricing in expectations well beyond what current earnings alone would suggest, though earnings in any single year can be affected by many factors not captured in a single ratio.
Dividend and Workforce
AAR Corp pays a dividend yielding about 0.24% annually, a modest payout relative to its share price. The company employs approximately 5,600 people, work that spans parts distribution, maintenance hangars, engineering, and logistics coordination across its operations. AAR Corp has been publicly traded since its June 1972 initial public offering, and it operates within the aircraft and components industry.
The Bottom Line
AAR Corp is a profitable, decades-old aviation supply and services company whose recent revenue growth stands out even as its net margins remain narrow. This article is factual reporting drawn from public filings and market data, not investment advice.
