AAR Corp.
AIR Industrials Aerospace & Defense
AAR Corp.’s revenue for fiscal 2026 (year ended May 2026) was $3.3 billion, up 19.0% from fiscal 2025. In the quarter to August 2026, revenue grew 24.1%, EPS grew 5.48%, free cash flow grew 182.1% and total debt fell 13.9%, each against the same quarter a year earlier. Dividend growth for ten consecutive years, revenue growth for five.
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AAR Corp. (AIR) Altman Z-score
AAR Corp.'s Altman Z-score for fiscal 2026 is 3.71, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 3.71 | 0.84 |
| FY2025 | 2.88 | 0.06 |
| FY2024 | 2.82 | (1.11) |
| FY2023 | 3.93 | (0.59) |
| FY2022 | 4.52 | 0.57 |
| FY2021 | 3.95 | 1.44 |
| FY2020 | 2.50 | (1.21) |
| FY2019 | 3.71 | (0.33) |
| FY2018 | 4.04 | 0.48 |
| FY2017 | 3.56 | 0.39 |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.34 | — | 0.40 | |
| Retained earnings / total assets | 0.34 | — | 0.48 | |
| EBIT / total assets | 0.08 | — | 0.27 | |
| Market value of equity / total liabilities | 2.61 | — | 1.57 | |
| Sales / total assets | 0.99 | — | 0.99 | |
| Altman Z-score | Safe zone | 3.71 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.97 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ACHR Archer Aviation Inc. compare | 9.4× |
| KRMN Karman Holdings Inc. compare | 8.9× |
| MRCY Mercury Systems Inc compare | 6.1× |
| VSEC VSE Corporation compare | 5.1× |
| MOG.B Moog Inc. compare | 4.0× |
| AIR AAR Corp. | 3.7× |
| BETA BETA Technologies, Inc. compare | 3.5× |
| FLY Firefly Aerospace, Inc. compare | 0.8× |
| LUNR Intuitive Machines, Inc. compare | 0.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets