AAR Stock Soars 15.42% on Strong Earnings, Strategic Moves

AAR (AIR) stock surged to a record high today, with an intraday gain of 15.42%.

The strategy of buying AIR shares after they reach a recent high and selling after one week resulted in no return over the past five years. The strategy had a CAGR of 0.00% and an excess return of -56.58%, underperforming the benchmark significantly. Additionally, the strategy had a maximum drawdown of 0.00% and volatility of 0.00%, indicating a risk-averse approach but failing to capitalize on broader market gains.

AAR's recent stock surge can be attributed to a combination of strong financial performance and strategic business moves. The company reported a 26% year-over-year revenue growth in Q2 2025, driven by AI-powered operational efficiency. Additionally, AAR achieved a 12% organic sales increase in Q4 FY2025, with strong demand across both commercial and government markets.

The successful integration of the Product Support acquisition and the divestiture of the Landing Gear Overhaul business have optimized AAR's portfolio. These strategic moves have led to improved margins and stronger financial performance, contributing to the positive momentum of its stock.

AAR has also secured several key contracts, including a joint venture with KIRA Aviation Services awarded a U.S. Navy pilot training contract. Additionally, the company has formed a new parts Distribution Supply Chain Alliance charter with the U.S. Defense Logistics Agency, further solidifying its position in the market.

The company's strong financial performance and strategic portfolio optimization have resulted in positive market reactions. AAR surpassed Q4 earnings and revenue estimates, leading to a price target increase from $75 to $85 by RBC Capital, which maintains an Outperform rating.