AAR Corp. stock surges 13.5% to $84.96, reaching a new high.

AAR Corp. (AIR) stock has risen 13.5% to $84.96.

AAR Corp. (AIR) stock has risen 13.5% to $84.96, marking a significant increase following the release of its fourth-quarter 2025 earnings report. The company's stock performance reflects strong operational results and a positive outlook from analysts.

AAR Corp. reported a 20% increase in revenue to $2.8 billion for fiscal year 2025, with a 14% organic sales growth in the fourth quarter, excluding the Landing Gear business [2]. The company also achieved a 140 basis points increase in its adjusted EBITDA margin to 11.8% and a 32% increase in adjusted diluted EPS to $1.16 [2].

Analysts have been bullish on AAR Corp. stock, with KeyBanc increasing its price target to $86 from $80, maintaining an Overweight rating [2]. The firm highlights the company's strategic positioning in the aerospace and defense aftermarket and its ability to leverage both organic and inorganic growth opportunities.

The stock's performance is also supported by the company's successful integration of the Product Support acquisition and the divestiture of its Landing Gear Overhaul business [2]. Additionally, the Trax software solution captured new business wins, including a significant contract with Delta Airlines [2].

Despite the positive points, AAR Corp. faces challenges in the Repair and Engineering segment, which showed a 3% year-over-year sales growth [2]. However, the company's strong financial performance and positive analyst ratings have driven the stock's recent surge.

References:
[1] https://stockanalysis.com/stocks/air/
[2] https://www.gurufocus.com/news/2983397/keybanc-boosts-aar-corp-air-price-target-following-strong-results-air-stock-news