AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. It operates through Aviation Services and Expeditionary Services segments. The Aviation Services segment engages in lease and sale of new, overhauled and repaired engine, and airframe parts and components, as well as aircrafts; and offers customized flight hour component inventory and repair, warranty claim management, and outsourcing programs for engine and airframe parts and components. This segment also provides fleet management and operations of customer-owned aircraft for the U.S. Department of State; customized performance-based supply chain logistics programs, which includes material planning, sourcing, logistics, information and program management, airframe and maintenance planning, and component repair, and overhaul services for U.S. Department of Defense and foreign governments. Further, it offers airframe inspection, maintenance, repair and overhaul, painting services, line maintenance, modifications, structural repairs, avionics service and installation, exterior and interior refurbishment, and engineering services and support; and repair and overhaul components including landing gears, wheels, and brakes for commercial and military aircraft; and operates six airframe maintenance facilities and one landing gear overhaul facility. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

AAR Corp.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, без изменений. Рынок не поддерживает быков.

Weak index, flat. The market does not support the bulls.

Слабый индекс, незначительно упал

TransDigm Group TDG continues to pursue strategic acquisitions to expand its proprietary aerospace portfolio and strengthen its aftermarket capabilities. The company’s disciplined acquisition strategy focuses on businesses with highly engineered products, strong aftermarket potential and attractive long-term returns.
In April 2026, TransDigm acquired Jet Parts Engineering and Victor Sierra Aviation Holdings for approximately $2.2 billion in cash. The acquisitions expanded the company’s proprietary aftermarket offerings and added complementary aerospace capabilities. Management noted in the fiscal third quarter that both businesses were progressing beyond expectations during the early stages of integration, supporting confidence in the potential of the acquisitions.
TransDigm further expanded its portfolio in July 2026 by agreeing to acquire Prince & Izant for approximately $1.07 billion in cash. Prince & Izant provides highly engineered products primarily to the aerospace and defense, aeroderivative turbine and transportation markets. The acquisition should broaden TransDigm’s product portfolio while adding another business aligned with its proprietary aerospace strategy.
TransDigm’s continued focus on acquisitions provides an avenue to expand its presence in attractive aerospace markets and increase its exposure to proprietary products with recurring aftermarket demand. Management also continues to pursue additional small and midsize acquisition opportunities while maintaining its established return criteria.
With a proven acquisition strategy, expanding proprietary product portfolio and a disciplined approach to capital deployment, TransDigm remains well-positioned to strengthen its competitive position and drive long-term growth through strategic acquisitions.
Aerospace Stocks to Keep on the Radar
Other aerospace companies pursuing strategic acquisitions to strengthen their capabilities and expand their presence are discussed below:
RTX Corporation RTX: RTX is using acquisitions and strategic investments to expand its aerospace and defense capabilities. Through Pratt & Whitney and Collins Aerospace, the company has a broad portfolio of aircraft engines, components and aftermarket services, positioning it to benefit from continued commercial aerospace demand.
AAR Corp. AIR: AAR is pursuing acquisitions to expand its aircraft aftermarket capabilities and move into higher-value MRO, engineering and modification services. Its acquisition of Aircraft Reconfig Technologies strengthened its certification, engineering and aircraft interior capabilities, supporting the company’s broader aftermarket strategy.
The Zacks Rundown for TDG
Shares of TDG have lost 10.6% in the past six months compared with the industry’s 14.2% decline.
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 5.67X compared with its industry’s average of 7.54X.
The Zacks Consensus Estimate for TDG’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
TDG stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Strategic Acquisitions Strengthen TransDigm's Growth?

TransDigm Group TDG is benefiting from healthy commercial aerospace activity and rising demand for aircraft aftermarket products. The company’s portfolio of highly engineered aerospace components positions it well to capitalize on increased aircraft utilization and the growing need for maintenance, repair and replacement parts.
Commercial aftermarket revenues increased approximately 17% year over year in the third quarter of fiscal 2026, accelerating from 14% growth in the preceding quarter. Commercial transport aftermarket revenues rose 18%, driven by strength across the engine, passenger and interiors markets, while freight revenues remained roughly flat. Distributor point-of-sale activity also increased at a double-digit rate.
Commercial aftermarket bookings exceeded management’s expectations for the third consecutive quarter, prompting TransDigm to raise its fiscal 2026 commercial aftermarket revenue growth outlook. The company also stated that it had not observed any material aftermarket slowdown related to the Middle East conflict through the fiscal third quarter.
With the commercial aerospace aftermarket expected to continue expanding amid rising aircraft utilization, an aging global fleet and sustained demand for maintenance and replacement parts, TransDigm is well-positioned to capitalize on favorable industry trends. Its strong aftermarket momentum and exposure to critical aerospace components should support continued growth in the commercial aerospace aftermarket.
Aircraft Aftermarket Stocks to Keep on the Radar
Other aerospace and defense companies benefiting from the growing aircraft aftermarket market are discussed below:
AAR Corp. AIR: AAR is expanding its aircraft aftermarket capabilities through acquisitions and investments in higher-value maintenance, repair and overhaul services. The company recently strengthened its engineering, aircraft modification and certification capabilities through the acquisition of Aircraft Reconfig Technologies, enhancing its ability to provide more comprehensive aftermarket solutions.
RTX Corporation RTX: Through its Pratt & Whitney and Collins Aerospace businesses, RTX provides engine maintenance, component repair, digital maintenance solutions and comprehensive aftermarket support for commercial and military aircraft worldwide.
The Zacks Rundown for TDG
Shares of TDG have lost 9.9% in the past six months compared with the industry’s 12.8% decline.
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 5.82X compared with its industry’s average of 8.03X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TDG’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
TDG stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is TransDigm's Commercial Aftermarket Strength Driving Growth?

Key Points
RTX's increasing backlog suggests that both its revenue and earnings will grow in the future.
Backlog growth helps reduce risk from economic downturns.
RTX still has to profitably execute on the backlog.
RTX's (NYSE: RTX) backlog is key to the investment case for the stock, because what's in the backlog and how it's growing are strong leading indicators of future growth. In a nutshell, investors want to see order growth feed into high-quality backlog growth, and then into higher-margin revenue growth through execution. As long as that's happening, investors can feel confident in the company's prospects.
RTX backlog
I'll cut straight to the chase. RTX's backlog continues to grow amid surging orders, and this applies to both its commercial aerospace and defense businesses. To put the backlog into perspective, management's recently upgraded estimate for adjusted sales in 2026 is $95 billion to $96 billion.
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However, backlog growth isn't just about securing a few years of sales; ongoing order growth above sales growth will drive it. In addition, backlog growth helps de-risk the company from short-term economic weakness that might impact its earnings and cash flow -- a key argument for a company that needs to spend billions developing long-cycle solutions such as aircraft engines, aerospace systems, missiles, defense technology, space, and intelligence technologies.
Fuelling RTX's long-term growth
It's important to understand that RTX's commercial aerospace equipment backlog drives long-term growth in services through highly profitable aftermarket sales -- for example, aftermarket parts for Pratt & Whitney commercial engines on Airbus A320 planes. Also, Collins Aerospace's systems backlog leads to high-margin recurring revenue as the systems (commercial aerospace and defense) are utilized. Meanwhile, the defense backlog across RTX, Collins Aerospace, and Pratt & Whitney creates a steady stream of government-backed revenue.
As such, backlog growth enhances earnings visibility, de-risks the businesses, and drives long-term earnings and cash flow growth tied to servicing a growing installed base of commercial aerospace and defense equipment. That said, RTX still has to execute on that backlog and ensure it's taking on profitable work. That's not always easy in the defense sector, where governments are pushing harder to obtain advantageous contracts.
Consequently, investors should always look for management's pronouncements on margin expansion when evaluating backlog growth, as the two ideally go hand in hand.
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RTX's $289 Billion Backlog, Explained

AAR Corp. AIR is using acquisitions to expand its aircraft aftermarket capabilities and strengthen its position in the growing MRO market. By adding engineering, aircraft modification and certification capabilities, the company is moving beyond traditional maintenance services and expanding into higher-value areas of the aviation aftermarket.
In April 2026, AAR completed the $35 million acquisition of Aircraft Reconfig Technologies. The deal added FAA Organization Designation Authorization, enabling AAR to issue supplemental type certificates and Parts Manufacturer Approval in-house. This reduces the company’s reliance on third parties and gives it greater control over the certification process.
The acquisition also strengthens AAR’s aircraft interior design, reconfiguration and engineering capabilities. These additions allow the company to provide more comprehensive solutions to customers while supporting its efforts to capture a larger share of aircraft modification and aftermarket spending.
AAR’s expanded capabilities could become increasingly valuable as airlines focus on maintaining, upgrading and extending the useful lives of existing aircraft. The company’s acquisition strategy should help it address a broader range of customer requirements while supporting growth in higher-value MRO and engineering services.
With enhanced certification capabilities and a broader aftermarket offering, AAR is well-positioned to benefit from sustained demand for aircraft MRO, modification and lifecycle support.
Aircraft MRO Stocks to Keep on the Radar
Other aerospace and defense companies strengthening their presence in the aircraft MRO market are discussed below:
RTX Corporation RTX: Through its Pratt & Whitney and Collins Aerospace businesses, RTX provides engine maintenance, component repair, digital maintenance solutions and comprehensive aftermarket support for commercial and military aircraft worldwide.
The Boeing Company BA: Through its Global Services business, Boeing provides maintenance, repair, engineering, supply-chain and digital sustainment solutions for commercial and military aircraft, supporting customers worldwide.
The Zacks Rundown for AIR
Shares of AIR have risen 94% in the past year compared with the industry’s 12.6% growth.
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.48X compared with its industry’s average of 8.77X.
The Zacks Consensus Estimate for AIR’s 2026 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
AIR stock currently sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
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Can Acquisitions Strengthen AAR's Position in the Aircraft MRO Market?

Mercury Systems MRCY reported adjusted earnings of 37 cents per share for the fourth quarter of fiscal 2026, in line with the Zacks Consensus Estimate. Adjusted earnings declined 21.3% year over year from 47 cents. Revenues of $289.78 million increased 6.1% year over year and beat the Zacks Consensus Estimate by 9.37%.
The revenue performance was supported by record bookings and continued production ramp-up. Total bookings reached $660 million, up 93.1% year over year, while the book-to-bill ratio stood at 2.28. The strong order activity pushed backlog above $1.9 billion.
MRCY's Orders Strengthen Future Visibility
The fourth-quarter booking performance was broad-based across common processing architecture, effectors, airborne applications, space and missile defense. MRCY also posted its largest quarter ever for common processing architecture bookings, reflecting stronger activity as programs move toward production.
The company also secured a significant multiyear booking related to memory requirements for advanced defense platforms. Management said the customer is seeking to secure supply early, reflecting demand tied to future production needs.
Mercury Systems Inc Price, Consensus and EPS Surprise
Mercury Systems Expands Production Momentum
Revenue growth was driven by higher activity across the portfolio and increased production volumes. Overtime revenues rose 23.6% year over year, reaching its highest level in 15 quarters, with management linking the increase largely to improved material availability.
Domestic revenues, which represented approximately 85.8% of fiscal 2026 revenues, grew 13% organically year over year. Mercury Systems is also expanding capacity, automation and factory operations to support programs transitioning to higher-volume production.
MRCY's Margins Reflect Program Mix
Gross margin was 30.6%, down from 31% in the prior-year quarter. Management attributed the pressure primarily to program mix and approximately $4 million of higher net estimated-at-completion change impacts.
Operating expenses increased approximately $13 million year over year. Selling, general and administrative expenses rose about $10 million, while research and development costs increased roughly $4 million, with compensation-related costs, including stock-based compensation, driving much of the increase.
Adjusted EBITDA was $48.52 million, down from $51.27 million a year earlier, while adjusted EBITDA margin contracted to 16.7% from 18.8%. The company expects margins to improve as lower-margin legacy backlog is converted and newer bookings carry margins closer to its target profile.
Mercury Systems Advances Automation Efforts
MRCY is pursuing factory optimization initiatives to improve scalability and execution as production volumes rise. These efforts include capacity expansion, increased automation and consolidation of subscale sites.
Mercury Systems also entered a strategic agreement with Palantir to use artificial intelligence software for material planning and factory operations. Management expects the effort to help improve backlog conversion and delivery performance, although the fiscal 2027 outlook excludes any benefit from the partnership.
Mercury Systems Improves Its Balance Sheet
Cash flows from operating activities increased 10.7% year over year to $42.15 million, while free cash flow declined 15.9% to $28.57 million.
MRCY ended the fourth quarter with $214.31 million in cash and cash equivalents, down from $331.8 million in the third quarter. Long-term debt declined to $441.5 million from $591.5 million after the company made a $150 million payment against its revolving credit facility.
MRCY Sets Higher Fiscal 2027 Targets
For fiscal 2027, MRCY expects revenues to approach $1.1 billion, with growth approaching double digits year over year. Adjusted EBITDA is expected to approach $200 million, with the margin in the high teens. Fiscal first-quarter revenues are expected to grow at a high-single-digit rate year over year.
Zacks Rank & Stocks to Consider
MRCY currently carries a Zacks Rank #3 (Hold).
ATI Inc ATI, AAR AIR and Astronics ATRO are some better-ranked stocks that investors can consider in the broader Zacks Aerospace sector.
ATI Inc, AAR and Astronics sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ATI Inc have surged 97.3% in the year-to-date period. The Zacks Consensus Estimate for ATI Inc’s 2026 EPS is pegged at $4.81 and indicating an improvement of 48.46% year over year.
Shares of AAR have surged 80% in the year-to-date period. The Zacks Consensus Estimate for AAR 2026 EPS is pegged at $5.92 and indicating an improvement of 17.23% year over year.
Shares of Astronic have surged 90.5% in the year-to-date period.The Zacks Consensus Estimate for Astronics 2026 EPS is pegged at $2.55 and indicating an improvement of 52.69% year over year.
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Mercury Systems Q4 Earnings in Line, Revenues Top on Bookings

Leidos Holdings, Inc. LDOS reported second-quarter 2026 non-GAAP earnings of $3.26 per share, beating the Zacks Consensus Estimate of $2.90 by 12.4%. Earnings increased 1.6% from $3.21 in the year-ago quarter.
On a GAAP basis, earnings per share were $2.81, down from $3.01 a year ago. Management attributed the year-over-year decline in GAAP results to discrete costs tied to the Entrust acquisition and the pending joint venture involving security-related businesses.
LDOS' Total Revenues
Total revenues came in at $4.56 billion, up 7.2% year over year and above the Zacks Consensus Estimate of $4.36 billion by 4.5%. Organic revenues increased 3.9% to $4.41 billion.
The company said revenues grew on higher customer demand for defense technology products, energy and air traffic management solutions, and intelligence mission support. Acquisition and divestiture revenues totaled $150 million compared with $9 million in the prior-year quarter.
Demand remained solid in the quarter. Net bookings totaled $4.9 billion, translating into a book-to-bill ratio of 1.1. The trailing-12-month book-to-bill ratio was also 1.1, supporting year-over-year growth in both total and funded backlog.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
LDOS’ Backlog
Backlog at quarter-end was $48.71 billion, including $10.22 billion funded and $38.49 billion unfunded. Total backlog increased 5% year over year, while funded backlog jumped 44%.
By segment, Intelligence & Digital backlog totaled $18.41 billion, Health was $6.61 billion, Homeland was $9.93 billion and Defense was $13.76 billion. Backlog as of July 3, 2026, included $371 million acquired through the Entrust transaction within the Homeland segment.
Operational Statistics of LDOS
Cost of revenues totaled $3.74 billion compared with $3.47 billion in the prior-year quarter. Selling, general and administrative expenses increased to $283 million from $217 million, while acquisition, integration and restructuring costs rose to $27 million from $2 million.
Operating income was $514 million, down from $571 million in the year-ago period. The operating margin contracted to 11.3% from 13.4%. Interest expense increased to $69 million from $55 million.
Adjusted EBITDA declined to $631 million from $647 million. The adjusted EBITDA margin was 13.8% compared with 15.2% a year ago. The prior-year quarter benefited from several one-time, non-operational gains, including a $25 million insurance reimbursement for legal costs.
Leidos’ Segmental Performance
Intelligence & Digital revenues rose to $1.50 billion from $1.41 billion, supported by recent contract awards and higher Intelligence Community mission-support volumes. The segment also included $9 million of revenues from Kudu Dynamics. Non-GAAP operating margin remained unchanged at 10.1%.
Health revenues declined to $1.09 billion from $1.18 billion, primarily due to lower medical disability examination volumes. Non-GAAP operating margin decreased to 23.8% from 26.3%.
Homeland revenues increased to $1.02 billion from $771 million, driven by continued demand in the Air Traffic and Energy businesses. Results included $141 million from Entrust. Non-GAAP operating margin improved to 12.1% from 9.3% on a better mix of security products, improved program performance and lower indirect expenses.
Defense revenues were $955 million compared with $899 million a year ago, reflecting increased demand for several defense technology product lines. Non-GAAP operating margin was 9.9% compared with 10% in the prior-year period.
LDOS’ Financials
Cash and cash equivalents were $748 million at quarter-end compared with $1.11 billion as of Jan. 2, 2026. Long-term debt, net of the current portion, increased to $6.01 billion from $4.63 billion over the same period.
Net cash provided by operating activities totaled $793 million for the quarter, up from $486 million in the prior-year period.
Leidos returned $127 million to shareholders, including $72 million in share repurchases and $55 million in dividend payments.
LDOS’ 2026 Guidance
Leidos raised its 2026 revenue outlook to $18.20-$18.40 billion from the prior range of $18.00-$18.40 billion. The Zacks Consensus Estimate for revenues is pegged at $18.12 billion, which is below the company’s guided range.
Non-GAAP earnings are now projected at $12.20-$12.50 per share compared with the previous range of $12.10-$12.50. The Zacks Consensus Estimate for earnings is pegged at $12.30 per share, which lies below the midpoint of the company’s guided range.
The company also raised its cash flows provided by operating activities outlook to approximately $1.85 billion from approximately $1.80 billion.
LDOS’ Zacks Rank
Leidos Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
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Leidos' Q2 Earnings Surpass Estimates, Revenues Improve Y/Y

Huntington Ingalls Industries, Inc. HII reported second-quarter 2026 earnings of $5.27 per share, up 36.5% year over year and 39.1% above the Zacks Consensus Estimate of $3.79.
Revenues rose 10.9% to $3.42 billion and beat the consensus mark of $3.14 billion by 8.9%. Higher aircraft carrier, submarine and amphibious assault ship volumes drove growth.
New contract awards totaled $6.7 billion, lifting backlog to $57.3 billion.
Operational Performance
Huntington Ingalls reported segmental operating income of $224 million compared with $172 million in the second quarter of 2026. The segmental operating margin expanded 100 basis points from the prior-year figure to 5.6%.
Huntington Ingalls Industries, Inc. Price, Consensus and EPS Surprise
Huntington Ingalls Industries, Inc. price-consensus-eps-surprise-chart | Huntington Ingalls Industries, Inc. Quote
HII Segmental Performance
Newport News Shipbuilding remained the largest revenue contributor. Revenues increased to $1.85 billion from $1.60 billion, driven by higher aircraft carrier and submarine volumes. Segment operating income rose to $111 million from $82 million, while margin improved to 6% from 5.1% on contract adjustments, incentives and stronger volumes.
Ingalls Shipbuilding revenues advanced to $845 million from $724 million, primarily due to higher amphibious assault ship volumes. Segment operating income increased to $58 million from $54 million, though margin declined to 6.9% from 7.5%.
Mission Technologies revenues fell to $760 million from $791 million. Lower All-Domain Operations and Global Security volumes more than offset growth in Warfare Systems and Unmanned Systems. Segment operating income improved to $55 million from $36 million, while margin expanded to 7.2% from 4.6% on higher equity income from nuclear and environmental joint ventures.
Financial Update
Cash flow remained pressured in the second quarter. Net cash used in operating activities was $31 million against net cash provided by operating activities of $823 million in the year-ago quarter. Free cash flow was negative $150 million against positive $730 million a year earlier. Net capital expenditures totaled $119 million in the quarter.
On capital deployment, HII paid $55 million in dividends and did not repurchase shares during the quarter. The company ended June 2026 with $12 million in cash and cash equivalents and $1.7 billion in liquidity.
2026 Guidance
Management reaffirmed its full-year expectations and maintained its medium-term growth framework. For 2026, HII continues to project shipbuilding revenues of $10.20-$10.40 billion with a shipbuilding operating margin of 6.0-6.5%.
Mission Technologies revenues are still expected at $3.0-$3.2 billion, with segment operating margin around 5% and EBITDA margin of 8.4-8.6%.
The company also reiterated free cash flow guidance of $500-$600 million and capital expenditures of 4-5% of sales.
Zacks Rank
Huntington Ingalls currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
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AAR Corp. (AIR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

HII Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.
The company reported GAAP earnings of 64 cents per share, which surpassed the year-ago quarter’s earnings of 17 cents.
HXL’s Total Sales
The company’s net sales totaled $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel’s Operational Update
Hexcel's gross margin was 26.1%, which increased 330 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.
Selling, general and administrative expenses increased 9.8% year over year to $47.2 million.
Meanwhile, research and development expenses rose 21% year over year to $17.3 million.
HXL’s adjusted operating income was $72.6 million compared with $30 million in the year-ago period.
Contribution From Different Markets
Commercial Aerospace: Net sales increased 18.3% year over year to $346.6 million, driven by sales growth from Airbus A350, as well as Boeing 787 programs. This market contributed 66% to total revenues in the first half of 2026.
Defense, Space & Other: Net sales decreased 7.2% year over year to $182.7 million due to the divestment of the Austrian-based industrial business. This market contributed 34% to total revenues in the first half of 2026.
HXL’s Financial Details
As of June 30, 2026, Hexcel’s cash and cash equivalents were $62.2 million compared with $71 million as of Dec. 31, 2025.
The company’s long-term debt totaled $959.4 million as of June 30, 2026, down from $993 million as of 2025-end.
HXL’s cash flow from operating activities was $96.7 million against a cash outflow of $5.2 million in the prior year.
Hexcel’s 2026 Guidance
Hexcel expects to generate sales in the range of $2.03-$2.13 billion for 2026. The Zacks Consensus Estimate is pegged at $2.08 billion, which lies above the midpoint of the company’s sales guidance.
HXL also expects its adjusted earnings per share to be in the range of $2.30-$2.40 for 2026. The Zacks Consensus Estimate is currently pegged at $2.26 per share, which is below the company’s guided range.
Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.
HXL’s Zacks Rank
Hexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
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AAR Corp. (AIR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Hexcel Q2 Earnings Surpass Estimates, Revenues Improve Y/Y

Lockheed Martin Corporation LMT reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.
Operational Highlights of Lockheed
Net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line inched up 10.5% from $18.16 billion reported in the year-ago quarter.
The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
LMT’s Backlog
LMT’s backlog as of June 28, 2026, was $230.42 billion compared with $193.62 billion as of Dec. 31, 2025.
The Aeronautics segment accounted for $54.36 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $87.88 billion. The Rotary and Mission Systems segment contributed $48.45 billion, while the Space unit accounted for $39.72 billion.
Lockheed’s Segmental Performance
Aeronautics: Sales increased 9.3% year over year to $8.11 billion. The increase was primarily driven by higher sales from the F 35 program.
The segment reported an operating profit of $760 million against the operating loss of $98 million in the year-ago quarter. The operating margin expanded 1070 basis points (bps) to 9.4%.
Missiles and Fire Control: Quarterly sales improved a solid 19.5% year over year to $4.10 billion. This was on account of higher sales from integrated air and missile defense programs, as well as tactical and strike missile programs.
The segment’s operating profit increased to $594 million from $479 million in the prior-year quarter. The operating margin expanded 50 bps to 14.5%.
Space: The top line improved 5.7% year over year to $3.50 billion, driven by higher sales from strategic and missile defense programs.
The segment’s operating profit increased to $371 million. The operating margin contracted 30 bps to 10.6%.
Rotary and Mission Systems: Quarterly revenues increased 7.8% to $4.35 billion on a year-over-year basis, driven by higher sales of Sikorsky helicopter programs.
The segment reported an operating profit of $437 million against the operating loss of $172 million in the second quarter of 2025. The operating margin contracted 1430 bps to 10%.
Financial Condition of LMT
Lockheed’s cash and cash equivalents totaled $3.79 billion as of June 28, 2026, compared with $4.12 billion at the end of 2025.
Cash from operating activities amounted to $3.46 billion as of June 28, 2026, compared with $1.61 billion a year ago.
Long-term debt as of June 28, 2026, totaled $20.54 billion compared with $20.53 billion at the end of 2025.
Lockheed’s 2026 Guidance
Lockheed expects to generate sales in the range of $79.75-$81.75 billion in 2026 compared with its previous guidance of $77.50-$80.00 billion. The Zacks Consensus Estimate is pegged at $79.16 billion, which lies above the midpoint of the company’s sales guidance.
LMT expects to generate adjusted EPS in the range of $29.95-$30.65 compared with its previous guidance of $29.35-$30.25. The consensus estimate is currently pegged at $29.97 per share, which lies above the midpoint of the company’s guidance.
Lockheed expects to generate cash from operations in the range of $9.20-$9.40 billion.
It expects capital expenditure of approximately $2.00-$2.40 billion.
Lockheed expects to generate a free cash flow of approximately $7.00-$7.20 billion.
LMT’s Zacks Rank
LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
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AAR Corp. (AIR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lockheed Q2 Earnings Beat Estimates, Sales Increase Year Over Year

AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
The company reported GAAP earnings of $1.27 per share compared with 95 cents in the prior-year quarter.
The year-over-year improvement in the bottom line can be attributed to strong sales growth.
AIR reported fiscal 2026 adjusted earnings of $5.05 per share, which were higher than the year-ago figure of $3.91, reflecting the impact of improved operating efficiency on higher sales volumes.
AIR’s Total Sales
In the quarter under review, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the double-digit growth across new parts Distribution within the company's Parts Supply segment and the impact of AIR’s acquisitions of HAECO Americas and ADI.
The company reported total revenues of $3.31 billion in fiscal 2026, which were higher than $2.78 billion in fiscal 2025.
AAR Corp. Price, Consensus and EPS Surprise
AAR: Segment Details
Parts Supply sales surged 38.7% to $423.8 million from $305.5 million in the prior-year quarter. Organic growth in new-parts distribution was 19%, with commercial distribution rising 28% organically and government distribution increasing 7%.
Repair, Engineering, and Software sales jumped 35.1% to $314.4 million. Growth reflected the HAECO Americas acquisition, record component maintenance sales, higher airframe maintenance volumes and capacity, and increased recurring revenues at Trax.
Government Solutions sales declined 8% to $130.2 million due to lower activity under the Worldwide Aviation Support Services program.
Legacy Commercial Programs recorded sales of $59.6 million, down 20.3% year over year.
AIR’s Operational Update
AIR’s adjusted operating income increased 27.4% to $98 million, while adjusted operating margin improved 10 basis points to 10.6%.
Selling, general and administrative expenses amounted to $99.6 million compared with $77.4 million a year ago.
Net interest expenses for the quarter totaled $16.3 million compared with $18.4 million in the year-ago period.
Financial Details of AAR
As of May 31, 2026, AAR’s cash and cash equivalents amounted to $84 million compared with $96.5 million as of May 31, 2025.
The company’s long-term debt totaled $893.9 million as of May 31, 2026, down from $968 million as of May 31, 2025.
In fiscal 2026, net cash provided from operating activities was $98.7 million compared with net cash flow of $36.1 million in the year-ago period.
AIR’s Zacks Rank
AAR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q2 Defense Releases
Lockheed Martin Corporation LMT is set to report second-quarter 2026 earnings on July 23, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
The Boeing Company BA is set to report second-quarter 2026 earnings on July 28, before market open.
The Zacks Consensus Estimate for BA’s loss stands at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, calling for year-over-year growth of 5.7%.
General Dynamics Corporation GD is set to report second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus mark for its sales is pegged at $13.49 billion, suggesting a year-over-year rise of 3.4%.
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AAR Corp. (AIR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	25.61 25.39
Price/Sales	1.40 1.42
P/B	2.80 2.42
P/FCF	56.94 18.59

Indicator	TTM Median
ROE	12.21 14.68
ROA	5.85 5.95
ROI	7.20 8.68
Net Worth	4.97 1.25
Quick Ratio	1.23 1.17
Current Ratio	2.84 1.59

Indicator	TTM Median
Net Profit Margin	5.68 7.63
Operating Margin	8.64 10.38
Gross Margin	18.83 32.92
Return on tangible equity	26.50 24.33

Indicator	TTM Median
EPS	1.53 0.82
EPS Forecast	1.41 0.67
Revenue	845.00M 187.00M
Gross Profit	177.00M —
EBITDA	87.00M —

AAR Corp.

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