AAR CORP. Reports 19% Revenue Growth to $3.31 Billion in Fiscal Year 2026

AAR CORP. reported significant financial growth in its fiscal year 2026, with consolidated sales reaching $3.31 billion, a 19% increase from $2.78 billion in the previous year. This growth was primarily driven by a 20.6% rise in sales to commercial customers, which amounted to $2.38 billion, and a 14.9% increase in sales to government customers, totaling $923.9 million. The company’s gross profit also improved, rising to $622 million from $528 million, reflecting a gross profit margin of 18.8%, slightly down from 19% in fiscal 2025.

The fiscal year saw AAR CORP. undertake a strategic restructuring of its operating segments, which now include Parts Supply, Repair, Engineering, and Software, Government Solutions, and Legacy Commercial Programs. Notably, the company announced its intention to exit the Legacy Commercial Programs segment, which accounted for approximately 5% of sales, due to its asset-heavy nature and insufficient capital return. This wind-down is expected to take three to four years as existing contracts are terminated and assets are sold.

AAR CORP. was particularly active in acquisitions during fiscal 2026, completing four significant purchases to enhance its service offerings and market presence. These included the acquisition of American Distributors Holding Co. for $137.1 million, HAECO Americas for $78 million, Aircraft Reconfig Technologies for $36 million, and Aerostrat Corp. for $19 million. The integration of these acquisitions is reportedly ahead of schedule, contributing positively to the company’s capabilities and customer value proposition.

Operationally, AAR CORP. employed approximately 7,100 individuals as of May 31, 2026, with a notable increase in employee headcount due to the acquisitions. The company also expanded its Airframe MRO facilities in Oklahoma City and Miami to meet growing customer demand. The firm backlog stood at $777 million, with expectations that about 70% of this backlog will be recognized as revenue in fiscal 2027, indicating a strong pipeline for future growth.

Looking ahead, AAR CORP. remains optimistic about its long-term growth prospects, particularly in the aviation aftermarket, driven by favorable trends in both commercial and government sectors. The company plans to continue investing in its business and capitalizing on opportunities in these markets, reinforcing its commitment to providing value-added solutions to its customers.