AARFRA:ARZ -2.00%83 Pretax Margin % is 11.02% as of Feb. 2026, which is 152% above its 10-year median of 4.38. GuruFocus rates FRA:ARZ with a GF Score™ of 83/100 and a GF Value™ of €72.60 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 348 Aerospace & Defense companies, AAR ranks better than 54.6% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. AAR's Pre-Tax Income for the
three
months ended in Feb. 2026 was €79 Mil. AAR's Revenue for the
three
months ended in Feb. 2026 was €715 Mil. Therefore, AAR's pretax margin for the quarter that ended in Feb. 2026 was 11.02%.
The historical rank and industry rank for AAR's Pretax Margin % or its related term are showing as below:
FRA:ARZ'
s Pretax Margin % Range Over the Past 10 Years
Min: 1.4 Med: 4.38 Max: 7.52
Current: 7.52
FRA:ARZ's Pretax Margin % is ranked better than 54.6% of 348
companies
in the Aerospace & Defense industry
Industry Median: 6.14
vs FRA:ARZ: 7.52
AAR (FRA:ARZ) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
AAR Pretax Margin % Related Terms
AAR Pretax Margin % Historical Data
* Premium members only.
The historical data trend for AAR's Pretax Margin % 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.
FRA:ARZ vs KRMN, VSEC, MRCY: Pretax Margin % Comparison
For the Aerospace & Defense subindustry, AAR's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AAR's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where AAR's Pretax Margin % falls into.
* 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 (FRA:ARZ) has a Pretax Margin % of 11.02% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AAR and its competitors. This is 152% above median its historical median of 4.38. Over the past decade, AAR's Pretax Margin % has ranged from 1.40 to 7.52. According to the industry distribution chart, AAR ranks #158 out of 348 companies in the Aerospace & Defense industry, placing it in the top 45.4%.
Is AAR's Pretax Margin % too high?
AAR's current Pretax Margin % of 11.02% is 152% above median its 10-year median of 4.38. Over the past 10 years, this metric has ranged from a low of 1.40 to a high of 7.52. The Aerospace & Defense industry median Pretax Margin % is 6.14. AAR's value of 11.02% is 79.5% above this industry median. Based on the distribution chart, AAR ranks #158 out of 348 companies in the Aerospace & Defense industry, which is above the industry midpoint. 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 Pretax Margin % compare to KRMN and VSEC?
According to the Aerospace & Defense industry distribution chart, AAR ranks #158 out of 348 companies for Pretax Margin %. This puts AAR in the upper half of its industry. The industry median Pretax Margin % is 6.14. AAR's value of 11.02% is 79.5% above this benchmark. Historically, AAR's own Pretax Margin % has ranged from 1.40 to 7.52 over the past decade. While the company's 10-year median is 4.38 vs. the industry median of 6.14, AAR has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Aerospace & Defense company?
The median Pretax Margin % among Aerospace & Defense companies is 6.14, based on 348 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAR's current Pretax Margin % of 11.02% is 79.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AAR and its competitors. For the Aerospace & Defense industry, the median Pretax Margin % is 6.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current Pretax Margin % is 11.02%, which is 152% above median its own 10-year median of 4.38. 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 €72.60, compared to a current price of €122.50 — trading 68.7% above its estimated fair value. The current Pretax Margin % is 11.02%, which is 152% above median its 10-year median of 4.38 and 79.5% above the Aerospace & Defense industry median of 6.14. AAR's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For AAR (FRA:ARZ), the current Pretax Margin % is 11.02% 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 €122.50 is trading 68.7% above its estimated GF Value™ of €72.60.
GuruFocus considers AAR to be Significantly Overvalued.
Key valuation signals for FRA:ARZ:
Pretax Margin %: 11.02% (152% above median its 10-year median of 4.38)
GF Value™: €72.60 vs. price of €122.50 (68.7% above fair value)
Industry Position: 79.5% above the Aerospace & Defense median (#158 of 348)
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 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
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