AAR Corp
NYSE:AIR

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AAR Corp
NYSE:AIR
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Price: 82.7 USD -1.3% Market Closed
Market Cap: 3.3B USD

AAR Corp
Investor Relations

AAR Corp., a distinguished name in the aviation sector, operates with the precision and reliability akin to the aircraft it services. Founded in 1951, the company has steadily ascended to prominence by offering a comprehensive suite of products and services designed to ensure the seamless operation of global air fleets. AAR has established itself as a linchpin in the aviation aftermarket, focusing on the repair, maintenance, and distribution of aircraft components and the provision of aviation services. The company leverages its extensive depot network and supply chain solutions to support both commercial airlines and government customers. By doing so, AAR not only facilitates operational efficiency but also empowers airlines to reduce downtime and optimize their fleet performance.

The essence of AAR's business model is its ability to sustain long-term partnerships while innovating in a field dominated by technical precision and safety. Its revenue generation is intricately tied to its core competencies: the provision of inventory management, component repair, engineering services, and overhaul solutions to its clients worldwide. Through these services, AAR plays a crucial role in the aviation ecosystem, helping clients navigate the complexities of fleet management with cost-effective solutions. This steady infusion of value solidifies its standing in a competitive industry, where the slightest edge in reliability and performance can define success. In essence, AAR Corp. thrives at the intersection of technological proficiency and a deep understanding of the aeronautics sector's demands.

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Last Earnings Call
Fiscal Period
Q1 2026
Call Date
Sep 23, 2025
AI Summary
Q1 2026

Strong Start: AAR delivered a strong Q1 with 17% organic adjusted sales growth and higher profitability, especially in parts supply.

Upgraded Outlook: Full-year organic sales growth guidance was raised to nearly 10%, up from the prior 9%, driven mostly by parts supply momentum.

Parts Supply Strength: Parts supply segment saw 27% sales growth, outpacing the market, with new distribution agreements driving share gains.

Margin Expansion: Improved operating efficiencies and a favorable business mix led to increases in both EBITDA and operating margins.

Software Growth: Trax software continued gaining traction, highlighted by a major win with Delta and the acquisition of Aerostrat to expand capabilities.

Inventory & Investments: Over $50 million was invested in inventory and $15 million in the Aerostrat acquisition, supporting growth but increasing net leverage slightly.

Positive Cash Outlook: Despite Q1 investments, management expects to be cash positive for Q2 and the full fiscal year.

Key Financials
Adjusted Sales
$740 million
Organic Adjusted Sales Growth
17%
Adjusted EBITDA
$86.7 million
Adjusted EBITDA Margin
11.7%
Adjusted Operating Income
$71.6 million
Adjusted Operating Margin
9.7%
Adjusted Diluted EPS
$1.08
Part Supply Sales
$318 million
Part Supply Adjusted EBITDA
$43.8 million
Part Supply Adjusted EBITDA Margin
13.8%
Part Supply Adjusted Operating Income
$40.9 million
Part Supply Adjusted Operating Margin
12.9%
Repair and Engineering Sales
$215 million
Repair and Engineering Adjusted EBITDA
$28.1 million
Repair and Engineering Adjusted EBITDA Margin
13.1%
Repair and Engineering Adjusted Operating Income
$24.9 million
Repair and Engineering Adjusted Operating Margin
11.6%
Integrated Solutions Sales
$185 million
Integrated Solutions Adjusted EBITDA
$14.2 million
Integrated Solutions Adjusted Operating Income
$11 million
Integrated Solutions Adjusted Operating Margin
5.9%
Net Debt Leverage
2.82x
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