Here's Why AAR Corp Stock Slumped Today Despite Excellent Earnings

AAR Corp shares slid about 6% as of 2 p.m. after the aviation aftermarket supplier posted first-quarter fiscal 2027 earnings that beat expectations and lifted full-year sales guidance. Management upgraded its outlook for 2027 sales from “low double digits” to “low teens,” citing continued demand strength across its businesses. The stock drop appears tied instead to AAR’s separate plan to buy a controlling stake in MRO Holdings. AAR will acquire 65% for an implied $4 billion enterprise value, or about 0.7x forecast 2026 adjusted EBITDA, expanding MRO capabilities and geography. Financing includes $2.1 billion of new debt, $780 million in equity, and $230 million from a private investment.