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Here's Why You Must Add AIR Stock to Your Portfolio Right Now
AIRAAR(AIR) ZACKS·2025-03-18 15:10

Core Viewpoint - AAR Corp. (AIR) is positioned as a strong investment option in the aerospace maintenance, repair, and overhaul (MRO) market due to its robust earnings estimates, low debt levels, and growth prospects [1] Group 1: Growth Projections - The Zacks Consensus Estimate for AAR's fiscal 2025 earnings per share (EPS) has increased by 0.5%, while the estimate for fiscal 2026 EPS has risen by 0.6% over the past 60 days [2] - The projected revenue for fiscal 2025 is 2.77billion,indicatinga19.52.77 billion, indicating a 19.5% increase from fiscal 2024, and for fiscal 2026, the revenue estimate is 2.96 billion, reflecting a 6.8% growth [2] - AAR has delivered an average earnings surprise of 3.90% over the last four quarters [3] Group 2: Debt Position - AAR's total debt to capital ratio stands at 45.51%, which is better than the industry average of 53.48% [4] - The times interest earned (TIE) ratio at the end of Q2 fiscal 2025 was 1.5, indicating the company can meet its interest obligations without issues [4] Group 3: Liquidity - AAR's current ratio at the end of Q2 fiscal 2025 was 2.68, surpassing the industry average of 1.74, demonstrating the company's ability to meet short-term liabilities [5] Group 4: Expansion in MRO Market - AAR completed the acquisition of Triumph Group, Inc.'s Product Support Business for $725 million in 2024, enhancing its MRO capabilities [6] - In March 2025, AAR signed a multi-year deal to provide nacelle MRO services for Cebu Pacific Air's A320 fleet in Thailand [7] - AAR formed a joint venture with Air France Industries KLM Engineering & Maintenance in December 2024 to offer next-generation nacelle MRO services in the Asia-Pacific region [7][8] Group 5: Stock Performance - Over the past three months, AIR shares have increased by 12.1%, outperforming the industry's growth of 3.3% [10]