AIR: Investor day highlights an adj. sales CAGR of 6-10%, adj. EBITDA margins of 13%+ though FY29

研报英文原文证据摘录

AIR: Investor day highlights an adj. sales CAGR of 6-10%, adj. EBITDA margins of 13%+ though FY29

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Ken Herbert (Analyst)

Stephen Strackhouse (Vice President)

Kevin Liu (Senior Associate)

May 12, 2026

AAR Corp

Investor day highlights an adj. sales CAGR of 6-10%, adj. EBITDA margins of 13%+ though

FY29

NYSE: AIR | USD 117.57 | Outperform | Price Target USD 125.00

Sentiment: Positive

AAR Corp (AIR) is hosting its 2026 investor day today. The company is focused on re-shaping the business by winding down its

Legacy Commercial Programs and re-segmenting its segment reporting. AAR provided updated financial targets, highlight by an

adj. sales CAGR of 6-10% and adj. EBITDA margins of 13%+. We believe the renewed focus for the company could be positive

for sentiment on AAR's stock, as we believe investors have been looking for continued margin improvement from the company.

We view a larger focus on new parts distribution as a narrative that could resonate with investors given the opportunity to grow

market share. We also see the repair and software businesses as a key component of margin improvement. We also view the

three-year target as conservative, as the 13%+ EBTIDA margins are in-line with current consensus estimates.

AAR's three-year financial framework targets adjusted sales CAGR of 6–10% (or 8–12% excluding Legacy Commercial Programs).

The company is also targeting adj. EBITDA margin of 13%+ (13–14%+ ex-Legacy), and adjusted EPS CAGR of approximately 15%

(15%+ ex-Legacy), all measured from a FY2026 baseline. Operating cash flow conversion is targeted at approximately 30%+ of

adj. EBITDA, driven by the exit of less cash-generative businesses, growth in higher cash flow segments (Repair, Government,