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Aerospace & defence · Industrials · Fiscal year ends May 31
AAR reported revenue of $3.3B in the fiscal year ended May 2026, up 19.0% from the year before. Operating income was $318M, an operating margin of 9.6%, and net income was $188M. Operating cash flow of $99M less capital expenditure of $37M left free cash flow of $62M. Net debt was $810M.
Ranks among the 30 aerospace & defence companies we cover (1st = best; for debt, the least indebted). Green = top third, red = bottom third.
Last 5 fiscal years
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Revenue | 1,820 | 1,991 | 2,319 | 2,781 | 3,308 |
| Cost of revenue | 1,507 | 1,620 | 1,877 | 2,253 | 2,686 |
| Gross profit | 313 | 370 | 442 | 528 | 622 |
| Selling, general & admin | 202 | 230 | 312 | 348 | 349 |
| Operating incomederived: pre-tax income + interest | 110 | 137 | 102 | 114 | 318 |
| Interest expense | 2.4 | 12.2 | 43.2 | 75.4 | 72.1 |
| Pre-tax income | – | 121 | 58.3 | 38.9 | 246 |
| Income tax | 26.6 | 31.4 | 12.0 | 26.4 | 58.2 |
| Net income | 78.7 | 90.2 | 46.3 | 12.5 | 188 |
| Diluted EPS | 2.17 | 2.53 | 1.29 | 0.35 | 4.86 |
| Diluted shares | 36.0 | 35.1 | 35.4 | 35.8 | 38.4 |
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Cash & equivalents | 53.5 | 68.4 | 85.8 | 96.5 | 84.0 |
| Receivables | 214 | 241 | 287 | 355 | 387 |
| Inventory | 551 | 574 | 733 | 809 | 979 |
| Current assets | 1,007 | 1,098 | 1,390 | 1,511 | 1,742 |
| Net PP&E | 110 | 126 | 172 | 159 | 167 |
| Goodwill | 116 | 176 | 555 | 531 | 580 |
| Total assets | 1,574 | 1,833 | 2,770 | 2,845 | 3,356 |
| Payables | 156 | 159 | 238 | 303 | 296 |
| Deferred revenue | 20.5 | 32.4 | 21.9 | 40.3 | 50.3 |
| Current liabilities | 348 | 352 | 467 | 555 | 613 |
| Long-term debt | 98.9 | 270 | 985 | 968 | 894 |
| Total liabilities | 539 | 734 | 1,580 | 1,633 | 1,652 |
| Shareholders' equity | 1,035 | 1,099 | 1,190 | 1,212 | 1,704 |
| Backlog (remaining obligations) | 850,000 | 668 | – | 537 | 777 |
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Operating cash flow | 75.2 | 23.3 | 43.6 | 36.1 | 98.7 |
| Capital expenditure | 17.3 | 29.5 | 29.7 | 34.7 | 36.6 |
| Free cash flow | 57.9 | −6.2 | 13.9 | 1.4 | 62.1 |
| Depreciation & amortisation | 33.1 | 27.2 | 40.2 | 55.2 | 72.1 |
| Stock-based compensation | 8.2 | 13.5 | 15.3 | 19.9 | 17.8 |
| Acquisitions | – | 103 | 723 | 1.5 | 259 |
| Share buybacks | 42.4 | 50.1 | 5.1 | 10.1 | – |
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 9.4% | 16.5% | 19.9% | 19.0% |
| Operating income growth (YoY) | – | 24.9% | −26.0% | 12.6% | 178.2% |
| EPS growth (YoY) | – | 16.6% | −49.0% | −72.9% | 1288.6% |
| Gross margin | 17.2% | 18.6% | 19.1% | 19.0% | 18.8% |
| Operating margin | 6.0% | 6.9% | 4.4% | 4.1% | 9.6% |
| Net margin | 4.3% | 4.5% | 2.0% | 0.4% | 5.7% |
| Return on equityBlank when equity is negative | 7.6% | 8.2% | 3.9% | 1.0% | 11.0% |
| ROCEEBIT ÷ (assets − current liabilities) | 9.0% | 9.3% | 4.4% | 5.0% | 11.6% |
| Free cash flow margin | 3.2% | −0.3% | 0.6% | 0.1% | 1.9% |
| Cash conversion (CFO ÷ net income) | 0.96x | 0.26x | 0.94x | 2.89x | 0.53x |
| Receivable days | 43 | 44 | 45 | 47 | 43 |
| Inventory days | 133 | 129 | 143 | 131 | 133 |
| Payable days | 38 | 36 | 46 | 49 | 40 |
| Interest cover | 45.8x | 11.2x | 2.35x | 1.52x | 4.41x |
| Debt ÷ equity | 0.10x | 0.25x | 0.83x | 0.80x | 0.52x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | 45.4 | 201 | 900 | 872 | 810 |
| Current ratio | 2.89x | 3.12x | 2.98x | 2.72x | 2.84x |
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.