AAR Corp Earnings On Deck – Stock (AIR) Eyeing Breakout Leading In

AAR Corp. stock (NYSE: AIR) is currently trading at $89.84 in the pre-market, up 2.09% on the session after a 4.23% increase from the previous day's close. Markets are keenly awaiting the company's earnings report, scheduled for release after market close. The stock is eyeing up a breakout, with the 52 week high at $89.69 under threat heading into the open.

The street is expecting the company to report an EPS of $1.03, a healthy improvement on the $0.90 delivered this time last year. Revenue is also expected to have grown double digits, up 11.29% Y/Y to $765.53million.

Several recent events have significantly impacted AAR Corp.'s stock performance and investor sentiment. A public offering of 3 million shares at $83.00 per share on October 1, 2025, resulted in a 6.8% stock price decline due to concerns about share dilution. The net proceeds of approximately $239 million were earmarked for debt repayment and general corporate purposes, including potential acquisitions.

The resignation of CFO Sean Gillen, effective December 11, 2025, created further uncertainty, leading to a 3.3% drop in the stock price. While the company appointed Sarah Flanagan as interim CFO and assured investors that the departure was not due to disagreements, the market reacted negatively to the leadership change.

Despite these challenges, AAR Corp. has also seen positive developments. Invesco Ltd. increased its holdings in AAR Corp. by 4.2% in the second quarter of 2025, bringing its total to 1,208,796 shares. Similarly, Gabelli Funds LLC boosted its stake by 57.7% to 78,169 shares. These increased institutional investments signal confidence in the company's long-term prospects.

Analysts have also expressed a modestly positive outlook, raising the average price target for AAR Corp. to $95.80 per share. This adjustment reflects slightly higher assumed discount rates and a richer future earnings multiple, indicating optimism about the company's growth and profitability.

AAR Corp.'s extended distribution agreements with Collins Aerospace and Arkwin Industries are expected to support steady performance and earnings momentum. These multi-year exclusive global distribution agreements reinforce AAR's position in the general aviation, commercial, and defense aftermarket distribution sectors.

These agreements provide a stable revenue stream and enhance the company's competitive advantage. Investors will be looking for updates on the performance of these partnerships during the earnings call.

From a technical perspective, AAR Corp.'s stock is currently trading above both its 50-day ($82.79) and 200-day ($72.68) simple moving averages (SMAs), supporting a bullish pattern.

After a year that has delivered gains of 41.67% for holders, a breakout, or a breakdown could be on the cards following the print.