Core Insights - AAR Corp. (AIR) has a strong position in the aerospace maintenance, repair, and overhaul (MRO) market, supported by robust return on equity (ROE) and effective debt management, making it a solid investment option in the Zacks Aerospace Defense Equipment industry [1] Growth Outlook - The Zacks Consensus Estimate for AAR's fiscal 2026 earnings per share (EPS) is $4.43, indicating a year-over-year increase of 13.3% [2] - Total revenues for fiscal 2026 are estimated at $2.87 billion, reflecting a year-over-year growth of 3.4% [2] - AAR has consistently surpassed expectations in the last four quarters, achieving an average earnings surprise of 9.44% [2] Return on Equity - AAR's current ROE stands at 12.29%, outperforming the industry average of 9.31%, indicating more effective use of funds compared to peers [3] Liquidity Position - The current ratio for AAR at the end of Q1 fiscal 2026 is 2.91, significantly higher than the industry average of 1.83, demonstrating strong short-term liquidity [4][9] MRO Market Expansion - AAR is the largest independent MRO provider in North America, with six certified hangars across the U.S. and Canada [5] - The company is expanding its airframe MRO facilities in Oklahoma City and Miami, which is expected to increase MRO network capacity by 15% and add nearly $60 million to annual revenues [7] Debt Profile - AAR's total debt to capital ratio is 44.41%, better than the industry average of 49.30% [10] - The times interest earned (TIE) ratio is 1.8, indicating the company can meet its interest obligations comfortably [10] Stock Performance - AAR shares have increased by 19.1% over the past three months, compared to the industry's growth of 2.1% [11]