AAR Corp. Reports 15.9% Revenue Growth to $795.3 Million in Latest Quarter

AAR CORP. reported significant financial improvements in its latest quarterly results, with consolidated sales reaching $795.3 million for the three months ended November 30, 2025, a 15.9% increase from $686.1 million in the same period last year. The company’s net income for the quarter was $34.6 million, compared to a net loss of $30.6 million in the prior year, resulting in earnings per share of $0.91, up from a loss of $0.87 per share. For the six-month period, sales totaled $1.534 billion, reflecting a 13.9% increase from $1.348 billion in the previous year, with net income of $69 million compared to a loss of $12.6 million.

The company attributed its growth to strong demand in its Parts Supply segment, which saw sales increase by 29.2% to $353.6 million, bolstered by the recent acquisition of American Distributors Holding Co. (ADI), contributing $28 million in sales. The Repair & Engineering segment also experienced growth, with sales rising 6.9% to $244.5 million, despite the divestiture of its Landing Gear Overhaul business. The Integrated Solutions segment reported a 7.6% increase in sales to $175.8 million, driven by higher government program activity.

AAR CORP. has been active in expanding its operations through strategic acquisitions, including the purchase of HAECO Americas for $76.5 million, which provides heavy aircraft maintenance services. The company also announced plans to acquire Aircraft Reconfig Technologies for $35 million, expected to close in the fourth quarter of fiscal 2026. These acquisitions are part of AAR's strategy to enhance its service offerings and operational capabilities in the aviation sector.

Operationally, AAR CORP. reported a total employee headcount of approximately 5,000 as of November 30, 2025, reflecting a slight increase from the previous year. The company has also been consolidating its facility footprint, closing its Indianapolis airframe maintenance facility and relocating operations to the newly acquired Greensboro, North Carolina facility. This transition is expected to be completed by fiscal 2027, with anticipated integration costs of around $7 million.

Looking ahead, AAR CORP. remains optimistic about its growth trajectory, citing favorable long-term trends in the aviation aftermarket and government contracting. The company expects to leverage its recent acquisitions and operational expansions to capture additional market share and enhance profitability. AAR CORP. anticipates continued revenue growth driven by strong demand across its commercial and government customer segments, positioning itself for sustained success in the coming quarters.