AAR (FRA:ARZ) EBIT: €267 Mil (TTM As of Feb. 2026)


FRA:ARZ AAR Corp FRA:ARZ
83 GF Score
Price €116.10
GF Value €74.36
Valuation Significantly Overvalued
! 8 Warning Signs
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What is AAR EBIT?

AAR FRA:ARZ -0.77% 83 EBIT is €267 Mil as of Feb. 2026. GuruFocus rates FRA:ARZ with a GF Score™ of 83/100 and a GF Value™ of €74.36 (Significantly Overvalued). The stock has 8 warning signs investors should review.

AAR's earnings before interest and taxes (EBIT) for the three months ended in Feb. 2026 was €94 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2026 was €267 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. AAR's annualized ROC % for the quarter that ended in Feb. 2026 was 7.19%. AAR's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 37.10%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. AAR's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 4.95%.


AAR  (FRA:ARZ) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

AAR's annualized ROC % for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=217.928 * ( 1 - 26.96% )/( (2225.385 + 2200.446)/ 2 )
=159.1746112/2212.9155
=7.19 %

where

Invested Capital(Q: Nov. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2804.762 - 513.983 - ( 65.394 - max(0, 513.983 - 1462.109+65.394))
=2225.385

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2819.295 - 552.438 - ( 66.411 - max(0, 552.438 - 1492.09+66.411))
=2200.446

Note: The Operating Income data used here is four times the quarterly (Feb. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

AAR's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Nov. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=374.272/( ( (278.443 + max(716.479, 0)) + (301.176 + max(721.553, 0)) )/ 2 )
=374.272/( ( 994.922 + 1022.729 )/ 2 )
=374.272/1008.8255
=37.10 %

where Working Capital is:

Working Capital(Q: Nov. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(313.389 + 787.842 + 129.231) - (513.983 + 0 + 0)
=716.479

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(329.263 + 810.637 + 134.091) - (552.438 + 0 + 0)
=721.553

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

AAR's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Feb. 2026 )
=267.115/5391.349
=4.95 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


AAR EBIT Related Terms


AAR EBIT Historical Data

* Premium members only.

The historical data trend for AAR's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

AAR EBIT Chart

AAR Annual Data
Trend May16 May17 May18 May19 May20 May21 May22 May23 May24 May25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.20 101.70 122.73 93.89 101.38

AAR Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.10 58.90 56.52 58.13 93.57

FRA:ARZ vs YSS, BETA, RDW: EBIT Comparison

For the Aerospace & Defense subindustry, AAR's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


AAR EV-to-EBIT vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, AAR's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where AAR's EV-to-EBIT falls into.


FRA:ARZ
83GF Score
AAR Corp FRA:ARZ
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

AAR EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Feb. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €267 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €267 Mil mean?
AAR (FRA:ARZ) has a EBIT of €267 Mil as of Feb. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on AAR.
Is AAR's EBIT too high?
AAR's current EBIT is €267 Mil. Overall, AAR has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AAR's EBIT compare to YSS and BETA?
AAR's EBIT of €267 Mil can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Aerospace & Defense company?
A good EBIT depends on the Aerospace & Defense industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on AAR. AAR's current EBIT is €267 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAR stock overvalued right now?
Based on GuruFocus' analysis, AAR (FRA:ARZ) is currently considered Significantly Overvalued. The stock's GF Value™ is €74.36, compared to a current price of €116.10 — trading 56.1% above its estimated fair value. The current EBIT is €267 Mil. AAR's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For AAR (FRA:ARZ), the current EBIT is €267 Mil as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is AAR (FRA:ARZ) Overvalued in 2026?

Based on GuruFocus' analysis, AAR stock appears to be overvalued. The current stock price of €116.10 is trading 56.1% above its estimated GF Value™ of €74.36. GuruFocus considers AAR to be Significantly Overvalued.

Key valuation signals for FRA:ARZ:

  • EBIT: €267 Mil
  • GF Value™: €74.36 vs. price of €116.10 (56.1% above fair value)
  • GF Score™: 83/100 with 8 warning signs

No single metric tells the full story. See the FRA:ARZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


AAR Business Description

Other Exchanges AIR:USA
Address 1100 N. Wood Dale Road, One AAR Place, Wood Dale, IL, USA, 60191
AAR Corp is engaged in providing products and services to aviation, government and defense market. It operates in segments namely: The parts supply segment majorly consists of sales and leasing of USM and aftermarket distribution of new, OEM-supplied replacement parts; Repair & Engineering segment provides airframe maintenance, component repair, and landing gear overhaul services; Integrated Solutions segment consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense, flight hour component inventory; and The Expeditionary Services segment consists of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and NGOs.
83GF Score

Get the complete analysis for FRA:ARZ

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€116.10
Price
€74.36
GF Value