AAR Corp
Investor Relations

AAR Corp. is an aerospace services company that helps airlines, cargo carriers, governments, and military operators keep aircraft flying. It repairs and overhauls aircraft parts, sells spare parts and components, and manages supply chains for customers that need hard-to-find aviation equipment and support. The company makes money mainly by charging for maintenance work, selling parts, and running outsourced logistics and supply programs. Its customers use AAR when they want a single partner to source parts, repair equipment, and handle inventory or repair management instead of doing all of that in-house. What makes AAR different is its focus on the aircraft aftermarket rather than building planes. It sits in the middle of the aviation value chain, where reliability, fast parts access, and technical know-how matter more than brand names or aircraft sales.

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Last Earnings Call
Fiscal Period
Q3 2026
Call Date
Mar 24, 2026
AI Summary
Q3 2026

Growth: Total sales were $845.0 million, up 25% year‑over‑year driven by 14% organic adjusted sales growth and broad-based strength across parts, repair and software.

Profitability: Adjusted EBITDA was $102.1 million (up 26%) and adjusted operating income was $86.2 million (up 31%), with adjusted diluted EPS of $1.25 (up 26%).

Parts momentum: Parts supply sales of $392.5 million grew 45%; new parts distribution rose 62% total and 36% organically, including a 55% organic increase in government distribution.

HAECO update: Integration of HAECO Americas is ahead of schedule, management expects margins to recover as rightsizing and process changes complete; a bargain purchase gain was recorded and excluded from adjusted results.

Software traction: Trax continues to ramp (Delta deployment at ~2,000 users, targeting 6,000 for initial module) and recurring revenue is growing.

Balance sheet & cash: Generated $75 million in operating cash flow; net leverage 2.17x (inside 2.0x–2.5x target).

Outlook: Q4 guidance: total adjusted sales +19% to +21%, organic +6% to +8%, and operating margin 10.2%–10.5%; full‑year sales growth roughly 19% with ~12% organic growth.

Key Financials
Total sales
$845.0 million
Organic adjusted sales growth
14%
Adjusted EBITDA
$102.1 million
Adjusted EBITDA margin
12.1%
Adjusted operating income
$86.2 million
Adjusted operating margin
10.2%
Adjusted diluted EPS
$1.25 per share
Parts supply sales
$392.5 million
New parts distribution growth (total)
62%
New parts distribution growth (organic)
36%
Government distribution organic growth
55%
Parts supply adjusted EBITDA
$59.0 million
Parts supply adjusted EBITDA margin
14.9%
Parts supply adjusted operating income
$53.6 million
Parts supply adjusted operating margin
13.7%
Repair & Engineering sales
$265.0 million
Repair & Engineering adjusted EBITDA margin
11.0%
Repair & Engineering adjusted operating margin
9.6%
Integrated Solutions sales
$167.8 million
Integrated Solutions adjusted EBITDA
$19.0 million
Integrated Solutions adjusted EBITDA margin
11.4%
Integrated Solutions adjusted operating income
$15.5 million
Integrated Solutions adjusted operating margin
9.2%
Operating cash flow
$75.0 million
Net leverage (net debt / adjusted EBITDA)
2.17x
Q4 total adjusted sales growth guidance
19% to 21%
Q4 organic adjusted sales growth guidance
6% to 8%
Q4 operating margin guidance
10.2% to 10.5%
Full year total sales growth expectation
approximately 19%
Full year organic sales growth expectation
approximately 12%
Earnings Call Recording
Other Earnings Calls

Management

Mr. John McClain Holmes III
CEO, President & Chairman of the Board
No Bio Available
Mr. Sean M. Gillen
Senior VP & CFO
No Bio Available
Ms. Jessica A. Garascia J.D.
Senior VP, General Counsel, Chief Administrative Officer & Secretary
No Bio Available
Ms. Tracey Patterson
Senior VP & Chief Human Resources Officer
No Bio Available
Mr. Christopher A. Jessup
Senior VP & Chief Commercial Officer
No Bio Available
Mr. Eric S. Pachapa
VP, Controller & Chief Accounting Officer
No Bio Available
Mr. Rahul S. Ghai
Senior VP and Chief Digital & Technology Officer
No Bio Available
Ms. Lori A. Knudson
VP and Chief Ethics & Compliance Officer
No Bio Available
Mr. Terry D. Stinson
Executive Vice President
No Bio Available
Mr. Andrew J. Schmidt
Senior Vice President of AAR Digital Services & Trax
No Bio Available

Contacts

Address
ILLINOIS
Wood Dale
1100 N Wood Dale Rd
Contacts
+16302272000.0
www.aarcorp.com
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