This is why AAR Corp. (AIR) is one of the Best Undervalued Aerospace and Defense Stocks

AAR Corp. (NYSE:AIR) is an undervalued aerospace and defense stock to buy. On May 12, AAR Corp. (NYSE:AIR) hosted an Investor’s Day, during which top executives outlined the company’s strategy, growth initiatives, and financial targets.

The management team reiterated that the company remains focused on delivering parts, repair, and software for the global aviation aftermarket. They also reaffirmed fourth-quarter and fiscal 2026 guidance. Fourth-quarter sales are expected to grow between 19% and 21%, underpinned by 6% to 8% organic sales growth. Adjusted operating margin is expected to range between 10.2% and 10.5%.

For the full year, AAR Corp. (NYSE:AIR) expects sales to grow between 17% and 19%, and adjusted organic sales to grow between 11% and 12%. The company boasts an impressive record of strong financial performance, with sales growing at a compound annual rate of more than 15% since 2022. Adjusted EBITDA has also expanded by over 26% to $376 million as of the third quarter of fiscal 2026. Adjusted earnings per share have also increased at a compound annual growth rate of 19% since 2022.

AAR Corp. (NYSE:AIR) is a leading independent aerospace and defense aftermarket services provider that specializes in maintenance, repair, and overhaul (MRO), parts supply, and integrated solutions for commercial airlines and government fleets. Headquartered near Chicago, they improve aircraft availability and reduce global ownership costs.

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