AAR CORP. reported significant financial improvements in its latest quarterly results, with consolidated sales reaching $845.1 million for the three months ended February 28, 2026, a 24.6% increase from $678.2 million in the same period last year. For the nine-month period, sales totaled $2.38 billion, up 17.5% from $2.03 billion. The company achieved a net income of $68 million, compared to a net loss of $8.9 million in the prior year quarter, reflecting a substantial turnaround in profitability. Earnings per share for the quarter were $1.72, compared to a loss of $0.25 per share in the previous year.
The growth in revenue was primarily driven by strong demand in the Parts Supply segment, which saw a 45% increase in sales, bolstered by the acquisition of American Distributors Holding Co. (ADI) that contributed $41.5 million in sales. The Repair & Engineering segment also experienced growth, with sales increasing by 22.9% due to the acquisition of HAECO Americas, which added $55.2 million in sales. However, the segment's operating income decreased by 20.5%, attributed to the integration of lower-margin operations from HAECO.
AAR CORP. has been active in expanding its business through strategic acquisitions, including the recent purchase of HAECO Americas for $78 million and ADI for $137.1 million. 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 market presence in the aerospace and defense sectors.
Operationally, AAR CORP. reported a total employee headcount of approximately 5,000, reflecting a slight increase as the company integrates its new acquisitions. The company also noted a significant increase in its contract assets, which rose to $142.3 million from $140.3 million, indicating a growing backlog of work. The firm backlog, which represents remaining performance obligations, was approximately $780 million, with expectations that 60% will be recognized as revenue over the next 12 months.
Looking ahead, AAR CORP. remains optimistic about its growth trajectory, citing favorable long-term trends in the commercial aviation aftermarket and ongoing investments in government contracts. The company anticipates continued revenue growth driven by its strategic acquisitions and expanding service capabilities, while also managing operational efficiencies to enhance profitability.
About AAR CORP
AAR Corp is a leading independent provider of aviation aftermarket solutions, offering a wide range of products and services to commercial and government aerospace customers. With operations in over 20 countries, AAR focuses on parts supply, repair and engineering, integrated solutions, and expeditionary services. The company is capitalizing on strong demand for aftermarket services, leveraging digital technologies, and expanding its facilities to enhance service delivery and profitability in a growing market.
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