What Happened?
Shares of aviation and defense services provider AAR CORP (NYSE: AIR) fell 3.3% in the morning session after the company announced its Chief Financial Officer, Sean Gillen, resigned to pursue another professional opportunity. Gillen's resignation was set to be effective December 11, 2025. The company noted that the departure was not the result of any disagreement on matters relating to its operations, policies, or financial reporting. In the interim, AAR appointed Sarah Flanagan, the company's Vice President of Financial Operations, to take over as Chief Financial Officer. Sudden changes in key leadership positions, like the CFO, can create uncertainty for investors, which often leads to a negative reaction in the stock price.
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What Is The Market Telling Us
AAR’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 10.9% on the news that the company reported record sales and profitability for its fiscal fourth quarter and full-year 2025.
The aviation services provider announced fourth-quarter adjusted earnings of $1.16 per share, a 32% increase from the prior year, handily beating analyst expectations. Revenue for the quarter also impressed, rising 15% to $755 million. The strong performance was driven by robust demand in both its commercial and government businesses, particularly in its Parts Supply segment. The company highlighted its successful integration of a recent acquisition and the divestiture of its landing gear business as key strategic moves that are now delivering higher growth and margins. Following the strong report, RBC Capital raised its price target on the stock to $85 from $75, maintaining an "Outperform" rating.
AAR is up 33.7% since the beginning of the year, and at $82.33 per share, it is trading close to its 52-week high of $89.67 from September 2025. Investors who bought $1,000 worth of AAR’s shares 5 years ago would now be looking at an investment worth $2,419.
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