AAR's third-quarter performance exceeded expectations, with strong growth in parts and repair services driving a significant increase in revenue.

LootboxPhobia · 2026-03-24T21:08:33+00:00

AAR Corporation exceeded expectations in its fiscal 2026 third quarter with adjusted earnings per share of $1.25, revenue of $845 million, and 25% year-over-year growth. All business segments achieved growth, with the chairman citing sustained momentum. Fourth quarter sales are projected to increase 19% to 21%.

LootboxPhobia

2026-03-24 21:08:33

Abstract generation in progress

Wood Dale, Illinois - AAR Corp. (NYSE:AIR) reported third-quarter fiscal 2026 results that exceeded analyst expectations, with adjusted earnings per share of $1.25, up $0.09 from the consensus estimate of $1.16. Revenue reached $845 million, surpassing the $812.2 million forecast, representing a 25% increase from $678.2 million in the same period last year. Following the announcement, the stock rose 0.6%.

All business segments of this aviation services provider showed growth, with parts supply revenue soaring 45% and organic growth of 36% in the new parts distribution business. Within the new parts distribution segment, sales to government customers grew organically by 55%. The Maintenance, Repair, and Engineering division also experienced strong growth due to increased activity in hangar and parts repair facilities. Adjusted EBITDA increased 26% to $102 million, with profit margins expanding from 12.0% last year to 12.1%.

Chairman, President, and CEO John M. Holmes stated, “AAR has once again delivered an excellent quarter, continuing our growth momentum. Total sales increased 25%, with organic adjusted sales up 14%. This quarter, we saw growth across our parts, maintenance, and software platform businesses.”

The company’s operating cash flow for the quarter was $74.7 million, helping to reduce net leverage to 2.17x, within the target range of 2.0x to 2.5x. Net income reached $68 million, or $1.71 per diluted share, compared to a net loss of $8.9 million, which included pre-tax charges of $63.7 million related to the divestiture of the landing gear overhaul business.

For the fourth quarter of fiscal 2026, AAR expects total sales to grow 19% to 21%, with an adjusted operating profit margin of 10.2% to 10.5%. The full-year guidance for fiscal 2026 indicates total sales growth of approximately 19%, with organic sales growth of about 12%.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.