#United States #financial results #Wood Dale #Aviation Aftermarket #AAR Corp.

AAR CORP. Reports Strong Performance for Fiscal Year 2026

On July 21, 2026, AAR CORP. (NYSE: AIR), a prominent player in the aviation aftermarket, released its financial results for the fourth quarter and full fiscal year 2026, which concluded on May 31, 2026. The report highlights a robust increase in revenue across its key segments, showcasing the company’s resilience and strategic focus in a competitive market.

Q4 Fiscal Year 2026 Highlights

• - Sales of $928 million, representing a 23% increase compared to Q4 FY 2025.
• - GAAP diluted earnings per share (EPS) reached $1.27, while the adjusted diluted EPS surged to $1.53, marking a 32% increase.
• - Net income for the quarter registered at $51 million, along with an adjusted EBITDA of $116 million, showing a 27% growth.
• - The adjusted EBITDA margin improved slightly from 12.4% to 12.5% year-over-year.

John M. Holmes, AAR’s Chairman, President, and CEO, stated, “Our momentum continued into the fourth quarter as we delivered another strong set of results. Total adjusted sales were up 26%, including 13% organic growth.” This growth was largely attributed to the Parts Supply segment, which experienced a 39% surge in sales, and notable increases in the Repair, Engineering, and Software segment.

Full Fiscal Year 2026 Highlights

Over the entirety of fiscal 2026, AAR CORP. reported:

• - Consolidated sales of $3.3 billion, a 19% increase from the prior fiscal year.
• - Net income totaled $188 million, with an adjusted diluted EPS of $5.05, reflecting a 29% rise.
• - The adjusted EBITDA for the year marked $401 million, representing a 24% increase and an EBITDA margin improvement from 11.8% to 12.1%.
• - AAR’s performance over the last five years has displayed a 37% compound annual growth rate (CAGR) in adjusted EBITDA, with significant gains in market share and operational efficiency.

Strategic Developments and Future Outlook

The company has also announced a new reporting structure consisting of four operating segments aimed at enhancing growth potential: Parts Supply, Repair, Engineering, and Software (RES), Government Solutions, and Legacy Commercial Programs. AAR intends to wind down the Legacy Commercial Programs business to streamline operations and focus on more profitable areas.

In addition to restructuring, AAR has secured a multi-year distribution agreement with Woodward, enhancing its portfolio with high-demand parts for prominent aircraft engines. It also received accolades, such as the Supplier of the Year Award from Collins Aerospace for its Component MRO facility in Wellington, Kansas.

Looking ahead, AAR is optimistic about its growth trajectory, projecting low double-digit to low teen sales growth for FY 2027, excluding the impacts of the Legacy Commercial Programs.

Holmes concluded, “The results for Fiscal Year 2026 demonstrate that our strategic adjustments are yielding a more resilient and profitable aviation aftermarket service platform. Our disciplined growth strategy positions us favorably to continue creating long-term value for all stakeholders.”

AAR CORP.'s commitment to innovation and operational excellence underlines its role as a leader in the global aviation market, as it continues to adapt to changing industry dynamics and customer needs.