OpenAI to produce its own AI chip with Broadcom from 2026- FT
Investing.com - Benchmark has reiterated a Buy rating and $83.00 price target on AAR Corporation (NYSE:AIR), currently trading at $74.72 and near its 52-week high of $76.34. The firm maintains its positive outlook despite a customer engine induction pushout reported in the company’s 3Q25 earnings. According to InvestingPro data, AAR has demonstrated strong momentum with a 21% revenue growth in the last twelve months.
The pushout, which contributed to a sell-off amid broader April tariff industry concerns, was actually related to high demand as the customer needed to retain the engine to meet requirements rather than delaying unnecessary maintenance.
Despite early third-quarter tariff concerns and end-of-quarter Iran disruption, Benchmark sees AAR positioned to benefit from Triumph acquisition integration, defense sector rebound, and higher margin Trax contract wins.
In early June, AAR announced that Delta selected its Trax unit to modernize Delta TechOps maintenance and engineering systems, a contract that will impact approximately 6,000 Delta technicians and represents a significant win in one of AAR’s highest-margin verticals.
Benchmark has slightly reduced its adjusted EPS forecast for 4Q25 by $0.02 due to AAR’s expected ~30% tax rate related to impairment from the Landing Gear divestiture, though the rate should normalize closer to 28% in future quarters, with the firm’s 4Q25 adjusted EPS estimate of $1.01 slightly exceeding the Street’s $1.00.
In other recent news, AAR Mobility Systems has secured an $85 million contract with the U.S. Department of Defense. This agreement involves the provision of specialized shipping and storage containers, shelters, and accessories. The contract is structured as a firm-fixed-price arrangement with economic-price-adjustment provisions and is classified as an indefinite-delivery/indefinite-quantity requirements agreement. The initial ordering period is set to conclude in July 2026, with a one-year base period and four additional one-year option periods. The equipment supplied under this contract will be utilized by multiple military branches, including the Army, Navy, Air Force, and Marine Corps, as well as federal civilian agencies. The Defense Logistics Agency Troop Support in Philadelphia, Pennsylvania, is overseeing the contracting activity for this agreement. This contract will be funded through the defense working capital funds for fiscal years 2025 and 2026.
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