AAR Stock Has Lift-Off, But Legacy Programs Could Clip Margins
Aircraft maintenance service AAR Corp (NYSE: AIR ) is gearing up to report its first-quarter fiscal 2027 results. While the guidance suggests robust growth in the company’s core business, margins could be impacted by headwinds from the Legacy Commercial Programs (LCP), according to RBC Capital Markets analyst Ken Herbert. The AAR Analyst: Herbert maintained an Outperform rating and price target of $145. The AAR Thesis: "We believe the setup for AAR into the quarter is strong," Herbert wrote in the note, citing commentary from other commercial aftermarket companies exiting the second quarter of calendar year 2026. Check out other analyst stock ratings. He noted that AAR ended fiscal 2026 with strong organic results, with 13% organic adjusted sales growth in the fourth quarter, driven by: 19% organic growth in new parts distribution Record growth in component MRO activity Higher volumes at airframe MRO facilities Higher recurring revenue at Trax The aftermarket fundamentals seem to support AAR’s first-quarter targets, with some upside potential, the analyst said. "However, we believe the broader AM uncertainty will limit sentiment upside, even as we expect management commentary to be
Aircraft maintenance service AAR Corp (NYSE: AIR ) is gearing up to report its first-quarter fiscal 2027 results. While the guidance suggests robust growth in the company’s core business, margins could be impacted by headwinds from the Legacy Commercial Programs (LCP), according to RBC Capital Markets analyst Ken Herbert. The AAR Analyst: Herbert maintained an Outperform rating and price target of $145. The AAR Thesis: "We believe the setup for AAR into the quarter is strong," Herbert wrote in the note, citing commentary from other commercial aftermarket companies exiting the second quarter of calendar year 2026.
Check out other analyst stock ratings. He noted that AAR ended fiscal 2026 with strong organic results, with 13% organic adjusted sales growth in the fourth quarter, driven by: 19% organic growth in new parts distribution Record growth in component MRO activity Higher volumes at airframe MRO facilities Higher recurring revenue at Trax The aftermarket fundamentals seem to support AAR’s first-quarter targets, with some upside potential, the analyst said. "However, we believe the broader AM uncertainty will limit sentiment upside, even as we expect management commentary to be bullish," he further wrote.
75% The analyst said both total sales growth and EBITDA margin outlook exclude the Legacy Commercial Programs business. 5% to 12% to reflect the LCP headwind. 02 at the time of publication on Monday. Read Also: AAR Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call Image: Shutterstock