AAR Corp Secures $289.7M Contract for Air Cargo Pallets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Should l Buy AIR?
Source: seekingalpha
AAR Corp's stock price fell by 7.30% as it crossed below the 5-day SMA amid a broader market decline.
The company secured a significant $289.7 million contract to produce 463 legacy air cargo pallets, enhancing its revenue stream and solidifying its position in the air freight market. The project, located in Cadillac, Michigan, is expected to be completed by March 17, 2032, ensuring a stable business source for AAR in the coming years. This sole-source contract, with $11,000 in FY26 procurement funds already obligated, reflects the government's trust in AAR and its importance in the defense supply chain.
This contract is expected to provide AAR with a stable revenue source, but the current market conditions, including a 2.09% drop in the Nasdaq-100 and a 1.94% drop in the S&P 500, may overshadow the positive impact of this contract.
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Analyst Views on AIR
Wall Street analysts forecast AIR stock price to fall
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 109.460
Low
99.00
Averages
106.80
High
121.00
Current: 109.460
Low
99.00
Averages
106.80
High
121.00
About AIR
AAR CORP. is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. The Company supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. Parts Supply segment primarily consists of its sales of used serviceable material, including aircraft, engine and airframe parts and components and distribution of new parts. Repair & Engineering segment primarily consists of its maintenance, repair, and overhaul (MRO) services across airframes and components. Integrated Solutions segment primarily consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs and others. Expeditionary Services segment primarily consists of products and services supporting the movement of equipment and personnel by the United States and foreign governments and non-governmental organizations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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