This Aerospace Stock Is A New Retail Favourite — Jim Cramer Calls It 'Incredibly Well Run'

• The company’s fiscal Q2 revenue rose 16% to $795 million, topping Wall Street expectations of $760.95 million, according to data compiled by Fiscal AI.
• Cramer added that aerospace was a “sensational” sector following AAR Corp’s results.
• CEO John Holmes said M&A is a key part of the firm’s growth and that the last several deals were self-sourced.

A quarterly revenue and profit beat as well as a bet on growth driven by mergers and deals, has spurred interest in AAR Corp, with the company’s shares seeing a 5.6% boost in after-hours trading and retail chatter surging on Stocktwits.

The stock also grabbed the attention of CNBC’s Mad Money host Jim Cramer who called the company “well run” in a post on X. “Didn't you love that AIR story? AAR Corp is just incredibly well run,” Cramer said. He added that aerospace was a “sensational” sector.

M&A Boost

AAR Corp, which is an aerospace and defense aftermarket solutions company with operations in over 20 countries, has been focusing on boosting its portfolio through acquisitions such as HAECO Americas and ADI.

“We continue to believe that and continue to see M&A as a key part of our growth. And one of the things I'm particularly proud of is out of the last several deals that we've done, these have all been self-sourced,” CEO John Holmes said during a post-earnings call.

Holmes added that the company has developed relationships with the owners of those firms it has acquired and all the deals that were closed in the last three years were sourced by them alone. Striking a cautious tone, Holmes noted that the company was “cognizant” of its own bandwidth and is making sure of success with the integrations that are underway right now.

Quarterly Earnings In A Snapshot

The company reported second-quarter revenue rose 16% to $795 million, topping Wall Street expectations of $760.95 million, according to data compiled by Fiscal AI.

AAR Corp’s adjusted profit per share came in at $1.18, also beating analysts’ average estimate of $1.03.

The company offers maintenance, repair and overhaul services for aircraft to commercial airlines and government operators, and it noted a significant growth in its parts supply business with sales up 29%. AAR Corp said that its distribution sector saw organic sales growth of 32%, and it gained market share with the ADI acquisition, further aiding growth.

How Are Stocktwits Users Reacting?

Retail sentiment on AAR Corp improved to ‘extremely bullish’ from ‘bullish’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

In the last seven days, the retail message volumes on the stock soared 500% and about 18% spike was noted on users adding the ticker to their watchlist on Stocktwits.

Stocktwits users expect the stock to hit an all-time high in Wednesday’s trading. A bullish user noted that the share could be up more than $100.

Shares of AAR Corp have gained nearly 45% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: This Small-Cap Nuclear Stock Bombed At Debut — But 2026 Might Be Its Redemption Year

Share

·

Add us on