Key Takeaways AIR's subsidiaries Trax and Aerostrat were selected by Thai Airways to support a digital maintenance overhaul.AAR's Trax will deploy eMRO, eMobility and cloud hosting to deliver real-time data and improved workflows.AIR's Aerostrat adds maintenance forecasting and AI tools to improve fleet availability and cost efficiency.AAR Corp. (AIR) recently stated that its subsidiaries, Trax and Aerostrat, have been chosen by Thai Airways to support the airline’s digital maintenance, repair and overhaul ...

Core Viewpoint - U.S. stock futures are trading higher, with several companies expected to report earnings and revenue figures that may attract investor attention [1] Company Summaries - **AngioDynamics, Inc. (NASDAQ:ANGO)**: Expected to report a quarterly loss of $0.10 per share on revenue of $76.30 million. Shares decreased by 0.2% to $13.20 in after-hours trading [1] - **Microchip Technology Inc (NASDAQ:MCHP)**: Anticipates third-quarter fiscal 2026 net sales of approximately $1.185 billion, exceeding previous guidance of $1.109 billion to $1.149 billion. Shares increased by 3.2% to $69.20 in after-hours trading [1] - **AAR Corp (NYSE:AIR)**: Analysts expect quarterly earnings of $1.04 per share on revenue of $761.13 million, with earnings to be released after market close. Shares rose by 0.8% to $88.70 in after-hours trading [1] - **Galapagos NV – ADR (NASDAQ:GLPG)**: The board has decided to wind down the company's cell therapy activities after a strategic review. Shares increased by 6% to $34.70 in after-hours trading [1] - **Penguin Solutions Inc. (NASDAQ:PENG)**: Expected to report quarterly earnings of $0.44 per share on revenue of $338.76 million after market close. Shares rose by 0.6% to $21.19 in after-hours trading [1]

Performance - Night Watch Investment Management LP experienced a net depreciation of -1.80% in Q4 2025, concluding the year with a total performance of 23.61% [2] - The performance in 2025 was broad-based and not reliant on a few securities, despite high volatility in single stocks during Q4 [2] Notable Positions - Haypp (HAYPP) emerged as the top performer, benefiting from regulatory resolutions and a reintroduction of Zyn at lower costs, positioning for high-margin growth in 2026 [3] - Allfunds (ALLFG) saw inflows into European securities and received a non-binding acquisition bid from Deutsche Boerse, leading to a reduction in Night Watch's position [4] - Marex (MRX), a Futures Commission Merchant, showed resilience despite market concerns over interest rates and exchange volumes, becoming the largest position in the portfolio with a P/E ratio around 9x [5] - Western Digital Corp (WDC) benefited from a memory shortage linked to AI data centers, with shares increasing over 200% since purchase, prompting a scaling down of the position [6] - Endava (DAVA) faced challenges as an IT services provider perceived as an AI loser, but potential for growth exists if programming efficiency leads to higher project volumes [7][8] - Distribution Solutions Group (DSGR) maintained performance expectations with organic growth accelerating to 6%, despite a contraction in US industrial activity [9] Portfolio Strategy - Night Watch employs a global value strategy focusing on companies with identifiable catalysts for re-rating, such as industry tailwinds or company-specific events [10] - The portfolio as of December 31, 2025, includes 32 positions with a significant focus on defensive sectors, Europe, and unique holdings to provide diversification [12] Outlook - The outlook indicates that after four years of economic difficulty, opportunities are emerging in industrials and consumer discretionary sectors, with expectations for further rate cuts and tax refunds supporting US consumer spending [15][16] - The investment strategy includes a focus on international markets, particularly in Japan, Hong Kong, and Brazil, with a belief that Brazil's equity market will normalize over time [17] - Defensive sectors, including food production and healthcare, are prioritized, with an emphasis on acquiring undervalued stocks with strong free cash flow yields [18] Company Update - Night Watch acquired a controlling stake in KEDM Inc., enhancing its research capabilities and aligning with its investment strategy focused on value and catalysts [22][24]

Core Viewpoint - AAR Corp. is experiencing a positive shift in analyst sentiment, reflected in the increasing consensus price target, driven by strong financial performance and favorable market conditions in the aviation and defense sectors [2][3][6] Financial Performance - AAR's consensus price target has risen from $91.2 to $100, indicating growing analyst confidence in the company's future performance [2][6] - The company is expected to report robust earnings or revenue growth, which has prompted analysts to adjust their targets upward [3][6] Analyst Outlook - KeyBanc analyst Michael Leshock has set a more conservative price target of $83, suggesting caution ahead of the earnings season despite the overall positive trend [2][6] Strategic Initiatives - New contracts or partnerships may contribute to the positive sentiment surrounding AAR, potentially driving future growth and enhancing market position [4][6] Market Conditions - Favorable market conditions in the aviation and defense sectors are playing a role in the optimistic outlook for AAR, with significant reports expected in early January [5][6]

Core Insights - AAR CORP. has been selected by Thai Airways to facilitate the airline's digital MRO transformation through partnerships with Trax and Aerostrat [1][6] Group 1: Digital Transformation - Trax's eMRO enterprise resource planning system and suite of eMobility apps will modernize Thai Airways' maintenance, repair, and overhaul processes, allowing for real-time data access and improved decision-making [2] - The integration of Aerostrat's advanced maintenance planning software, Aerros, will enhance Thai Airways' capabilities in long-range maintenance forecasting and optimization, ensuring fleet availability and cost efficiency [3] Group 2: Operational Improvements - The implementation of digital solutions from Trax and Aerostrat will provide scalability, security, and flexibility to Thai Airways' maintenance operations, improving turnaround times and reducing reliance on paper-based systems [4] - The partnership is expected to elevate Thai Airways' operational performance and establish a state-of-the-art MRO operation that meets global standards [6] Group 3: Company Background - AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries, supporting commercial and government customers through various segments [5] - Trax has over 25 years of experience in powering digital transformation for airlines and MROs, focusing on automating and modernizing maintenance operations [7] - Aerostrat, founded in 2015, specializes in maintenance planning and scheduling, providing tools that automate complex scheduling for air carriers [8] - Thai Airways aims to transform its MRO department into a world-class Digital MRO, enhancing transparency and efficiency in operations [9]

Core Viewpoint - AAR CORP. has commenced its exclusive commercial distribution agreement with TRIUMPH, enhancing its offerings in the aviation services sector, particularly for Boeing and Airbus platforms [1][2]. Group 1: AAR CORP. Overview - AAR CORP. is a leading provider of aviation services, catering to commercial and government operators, MROs, and OEMs [1]. - The company operates in over 20 countries and supports customers through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services [4]. Group 2: TRIUMPH Overview - TRIUMPH is headquartered in Radnor, Pennsylvania, and specializes in designing, developing, manufacturing, repairing, and overhauling aerospace and defense systems and components [5]. - The company serves a wide range of clients in the global aviation industry, including OEMs and military and commercial aircraft operators [5]. Group 3: Distribution Agreement Details - The distribution agreement allows AAR to exclusively distribute TRIUMPH's commercial actuation product line, which includes over 100 assemblies and subcomponents for Boeing and Airbus platforms [1][2]. - This relationship is expected to complement AAR's existing product offerings and enhance its customer base, while TRIUMPH benefits from AAR's global sales force and efficient inventory delivery [2][3]. Group 4: Market Impact - AAR's Senior Vice President of Distribution, Frank Landrio, expressed optimism about the expansion of AAR's offerings in the commercial aftermarket, highlighting the value of TRIUMPH's quality reputation [3].

Earnings Reports - Next Wednesday will see a notable increase in earnings, with nine companies reporting [1] - Key reports include Constellation Brands Inc., a consumer staples giant, and Jefferies Financial Group Inc., a financials firm, both reporting after market close [1] - Albertsons Companies Inc. Class A leads a group of retail and industrial companies reporting pre-market on Wednesday, which includes MSC Industrial Direct Company Inc., Cal-Maine Foods Inc., Unifirst Corporation, and AZZ Inc. [1] - AAR Corp. and technology companies Penguin Solutions Inc. and Applied Digital Corp. are set to report after market close on Tuesday and Wednesday, respectively [1]

Earnings Report - AAR Corp is set to release its second-quarter earnings results on January 6, 2026, with expected earnings of $1.04 per share, an increase from $0.90 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $760.95 million, compared to $686.1 million reported last year [1] Acquisition Announcement - On December 17, AAR announced a definitive agreement to purchase Aircraft Reconfig Technologies [2] - Following the announcement, AAR's shares fell by 0.7%, closing at $84.51 [2] Analyst Ratings - Jefferies analyst Sheila Kahyaoglu initiated coverage with a Buy rating and a price target of $100 [3] - RBC Capital analyst Ken Herbert maintained an Outperform rating and raised the price target from $85 to $90 [3] - Keybanc analyst Michael Leshock maintained an Overweight rating and increased the price target from $86 to $93 [3] - Truist Securities analyst Michael Ciarmoli maintained a Buy rating and boosted the price target from $81 to $90 [3]

AAR Corp (NYSE:AIR) will release earnings results for its second quarter before the opening bell on Tuesday, Jan. 6, 2026.Analysts expect the Wood Dale, Illinois-based company to report quarterly earnings at $1.04 per share, up from 90 cents per share in the year-ago period. The consensus estimate for AAR's quarterly revenue is $760.95 million. Last year, it reported $686.1 million in revenue, according to Benzinga Pro.On Dec. 17, AAR announced that it has entered into a definitive agreement to purchase Air ...

Core Insights - AAR (AIR) is experiencing strong revenue and earnings growth following the successful integration of the acquisition of Triumph, leading to an upward trend in its stock price [1]. Group 1 - The company is expected to reach new stock price highs due to its robust financial performance [1]. - The integration of Triumph has positively impacted AAR's financial metrics, contributing to its growth trajectory [1]. Group 2 - The investment group "Value in Corporate Events" focuses on identifying opportunities from major corporate events such as IPOs, mergers, and earnings reports [2]. - The group provides coverage of approximately 10 significant events each month, aiming to highlight the best investment opportunities [2].