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) Beneish M-score
AAR Corp.'s Beneish M-score for fiscal 2026 is −2.18; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2026 | −2.18 | 0.18 |
| FY2025 | −2.36 | 0.05 |
| FY2024 | −2.41 | (0.19) |
| FY2023 | −2.22 | 0.03 |
| FY2022 | −2.25 | 0.27 |
| FY2021 | −2.53 | 0.02 |
| FY2020 | −2.54 | (0.15) |
| FY2019 | −2.39 | 0.24 |
| FY2018 | −2.63 | (0.27) |
| FY2017 | −2.37 | 0.08 |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.92 | — | 0.84 | |
| Gross margin index | 1.01 | — | 0.53 | |
| Asset quality index | 1.04 | — | 0.42 | |
| Sales growth index | 1.19 | — | 1.06 | |
| Depreciation index | 0.86 | — | 0.10 | |
| SG&A index | 0.84 | — | −0.15 | |
| Total accruals to total assets | 0.03 | — | 0.12 | |
| Leverage index | 0.84 | — | −0.27 | |
| Beneish M-score | Elevated | −2.18 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| LUNR Intuitive Machines, Inc. compare | −4.7× |
| MRCY Mercury Systems Inc compare | −2.8× |
| MOG.B Moog Inc. compare | −2.4× |
| BETA BETA Technologies, Inc. compare | −2.3× |
| AIR AAR Corp. | −2.2× |
| VSEC VSE Corporation compare | −2.0× |
| KRMN Karman Holdings Inc. compare | −1.9× |
| FLY Firefly Aerospace, Inc. compare | 13.4× |
| ACHR Archer Aviation Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI