AAR launches public offering of 3 million common stock shares

WOOD DALE, Ill. - Aviation services provider AAR CORP. (NYSE:AIR) announced Tuesday it has commenced an underwritten registered public offering of 3 million shares of its common stock. The company also plans to grant underwriters a 30-day option to purchase up to an additional 450,000 shares at the public offering price, less underwriting discounts and commissions. The announcement comes as AAR’s stock trades at $89.65, having gained over 56% in the past six months and currently trading near its 52-week high, according to InvestingPro data.

AAR intends to use the net proceeds to repay outstanding borrowings under its unsecured revolving credit facility and for general corporate purposes, which may include funding future acquisitions, according to the company’s press release.

Goldman Sachs & Co. LLC, Jefferies and RBC Capital Markets, LLC are serving as joint book-running managers for the offering.

The offering is being made pursuant to a shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission and became automatically effective on July 19, 2023.

AAR describes itself as a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, the company supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.

The announcement comes as part of the company’s broader financial strategy, though specific details about the timing of the offering completion were not included in the statement. Based on InvestingPro analysis, AAR shows strong momentum with revenue growth of 17.6% in the last twelve months. Investors can access a comprehensive Pro Research Report and 14 additional ProTips for deeper insights into AAR’s financial health and market position.

In other recent news, AAR Corp reported its first-quarter fiscal 2026 earnings, surpassing market expectations with an adjusted earnings per share (EPS) of $1.08, compared to the forecasted $1.00. The company also reported revenue of $740 million, significantly exceeding the expected $691.5 million. Additionally, AAR announced the acquisition of American Distributors Holding Co., LLC for $146 million in an all-cash transaction, expanding its parts distribution business. This acquisition will be integrated into AAR’s Parts Supply segment. Truist Securities raised its price target for AAR Corporation from $81 to $90, while maintaining a Buy rating. The price target adjustment followed AAR’s strong earnings performance, although the company’s free cash flow did not meet analyst estimates. These developments highlight AAR’s recent strategic moves and financial achievements.

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