AAR reported fourth-quarter fiscal 2026 results with revenue of $928.0 million and GAAP net income of $50.7 million, or $1.27 per diluted share. For the full fiscal year AAR posted sales of $3.308 billion, GAAP net income of $187.7 million and adjusted diluted EPS of $5.05. Adjusted EBITDA for the year was $401.1 million with an adjusted EBITDA margin of 12.1%.

Financial Highlights

  • Revenue: $928.0 million for the three months ended May 31, 2026; $3,308.0 million for fiscal year 2026.
  • Gross profit: $176.7 million in Q4 FY2026 (as reported for the three months ended May 31, 2026).
  • Operating income: $80.1 million for Q4 FY2026; $277.8 million for fiscal year 2026.
  • Net income (GAAP): $50.7 million in Q4 FY2026 ($1.27 diluted EPS); $187.7 million for fiscal year 2026 ($4.86 diluted EPS).
  • Adjusted diluted EPS: $1.53 for Q4 FY2026; $5.05 for fiscal year 2026. Adjusted EBITDA: $115.8 million in Q4 FY2026; $401.1 million for fiscal year 2026 (12.5% and 12.1% adjusted EBITDA margins, respectively).

Business Highlights

  • Parts Supply growth led performance: Parts Supply segment sales rose to $423.8 million in Q4 and $1,487.7 million for the year, driven by new parts distribution and a 39% segment increase in the quarter.
  • Repair, Engineering, and Software (RE&S) expansion: RE&S sales were $314.4 million in Q4 and $1,080.8 million for the year, with notable increases in Component MRO activity, higher Airframe MRO volumes, and recurring revenue growth at Trax.
  • Segment realignment and wind-down plan: Announced new reporting structure of four operating segments (Parts Supply; RE&S Government Solutions; Legacy Commercial Programs) and intention to wind down Legacy Commercial Programs to focus on higher-growth, higher-margin offerings.
  • Operational and strategic milestones: Completed acquisition of Aircraft Reconfig Technologies adding FAA ODA capability; launched Airvoyant AI-powered procurement solution; expanded Airbus proprietary repair capabilities and received supplier recognition at the Wellington, Kansas facility.
  • Government contracts and backlog activity: Awarded a $305 million follow-on contract for contractor logistics support of the U.S. Navy and Marine Corps C-40A fleet; government sales represented 28% of consolidated sales in the year.

Original SEC Filing:

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