Slide 1: Investor Presentation May 2025
© 2025 AAR CORP. All rights reserved worldwide. 1 Investor Presentation May 2025
Slide 2: Forward-looking statements
© 2025 AAR CORP. All rights reserved worldwide. 2 Forward - looking statements Note: All results and expectations in the presentation reflect continuing operations unless otherwise noted. This presentation contain s certain statements relating to future results, which are forward - looking statement
Slide 3: AAR at a glance
© 2025 AAR CORP. All rights reserved worldwide. 3 US/Canada 72% EMEA 16% APAC 10% Other 2% AAR at a glance A leading independent aviation aftermarket services provider Parts Supply 42% Repair & Engineering 27% Integrated Solutions 28% Expeditionary Services 3% Commercial 71% Government 29% • Pure pl
Slide 4: AAR transformation: a focused company positioned for growth
© 2025 AAR CORP. All rights reserved worldwide. 4 AAR transformation: a focused company positioned for growth • Disparate portfolio with little transparency • Low operating margins • In 2019, embarked on strategy to focus on core aviation services offering and improve margins • Focused portfolio in
Slide 5: What we do
© 2025 AAR CORP. All rights reserved worldwide. 5 What we do Operate across three core business segments Parts Supply Repair & Engineering Integrated Solutions Leverage strengths across our segments to deliver greater value to customers • Distributor of new parts to aftermarket • 90% long - term, ex
Slide 6: Business highlights
© 2025 AAR CORP. All rights reserved worldwide. 6 Business highlights Financial statistics (Q3 FY25 LTM) • Sales of $1,054 million • Adjusted EBITDA of $141.8 million • Adjusted EBITDA margin of 13.4% Parts Supply Financial statistics (Q3 FY25 LTM) • Sales of $879 million • Adjusted EBITDA of $115.0
Slide 7: Growth and margin expansion driving increase in earnings
© 2025 AAR CORP. All rights reserved worldwide. 7 - 50 100 150 200 250 300 350 LTM Q3 FY24 LTM Q3 FY25 $ 309.7 $ 219.0 11.6% margin 9.9% margin 0 50 100 150 200 250 300 LTM Q3 FY24 LTM Q3 FY25 $945.30 $1,054.40 - 500 1,000 1,500 2,000 2,500 LTM Q3 FY24 LTM Q3 FY25 Up 21% $ 2,216 $ 2,683 Sales by seg
Slide 8: Multiple quarters of margin and earnings expansion
© 2025 AAR CORP. All rights reserved worldwide. 8 x Strong execution driving significant Adjusted EBITDA margin expansion x Growth in Distribution and improved efficiency in Airframe MRO contributing to margin expansion x Portfolio enhanced by margin accretive acquisitions of Trax and Product Suppor
Slide 9: Capital allocation framework and net leverage
© 2025 AAR CORP. All rights reserved worldwide. 9 Capital allocation framework and net leverage Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 3.17x 3.31x 3.30x 3.58x March 1, 2024 Product Support acquisition Lower by 0.52x Pro forma net debt to pro forma adjusted EBITDA 3.06x See Appendix for reconciliation of No
Slide 10: Multi-pronged growth and margin expansion plan
© 2025 AAR CORP. All rights reserved worldwide. 10 $156 $190 $242 $310 2022A 2023A 2024A LTM Q3 FY25 Strong market tailwinds Plannin g 1 Clear path to growth and increased profitability Market share gains and new business wins Plannin g 2 Cost efficiency and synergy realization Plannin g 3 Digital a
Slide 11: Appendix
© 2025 AAR CORP. All rights reserved worldwide. 11 Appendix
Slide 12: Non-GAAP financial measures
© 2025 AAR CORP. All rights reserved worldwide. 12 Non - GAAP financial measures Adjusted sales, adjusted operating income, adjusted operating margin, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma EBITDA, net debt, net debt to adjusted EBITDA, and p
Slide 13: Adjusted EBITDA reconciliation by segment, Q4 FY23 to Q3 FY24
© 2025 AAR CORP. All rights reserved worldwide. 13 Twelve months ended Q3 - 24 Non - GAAP financial measures Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Twelve months ended Q3 FY24 Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped ($ in millions) Supply R&E Solutions Svcs
Slide 14: Adjusted EBITDA reconciliation by segment, Q4 FY24 to Q3 FY25
© 2025 AAR CORP. All rights reserved worldwide. 14 Twelve months ended Q3 - 25 Non - GAAP financial measures Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Twelve months ended Q3 FY25 Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped ($ in millions) Supply R&E Solutions Svcs
Slide 15: Adjusted EBITDA: FY15 and FY20 through FY22
© 2025 AAR CORP. All rights reserved worldwide. 15 Adjusted EBITDA: FY15 and FY20 through FY22 Non - GAAP financial measures ($ in millions) FY15 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Sales $1,448.0 $541.5 $560.9 $553.1 $416.5 $400.8 $40
Slide 16: Adjusted EBITDA: FY23 through FY25
© 2025 AAR CORP. All rights reserved worldwide. 16 Adjusted EBITDA: FY23 through FY25 Non - GAAP financial measures ($ in millions) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q1 FY25 Q2 FY25 Sales $446.3 $469.8 $521.1 $553.3 $1,990.5 $549.7 $545
Slide 17: Adjusted diluted earnings per share: FY20 through FY22
© 2025 AAR CORP. All rights reserved worldwide. 17 Adjusted diluted earnings per share: FY20 through FY22 Non - GAAP financial measures Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Diluted earnings (loss) per share from continuing operations $0.49 $0
Slide 18: Adjusted diluted earnings per share: FY23 through FY25
© 2025 AAR CORP. All rights reserved worldwide. 18 Adjusted diluted earnings per share: FY23 through FY25 Non - GAAP financial measures Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Diluted earnings (loss) per share from continuing operations $0.62 $0.64 $0.
Slide 19: Pro forma net debt to pro forma EBITDA
© 2025 AAR CORP. All rights reserved worldwide. 19 Pro forma net debt to pro forma EBITDA Non - GAAP financial measures
Slide 20: FY15 Sales by segment
© 2025 AAR CORP. All rights reserved worldwide. 20 FY15 Sales by segment Non - GAAP financial measures ($ in millions) Parts Supply $464.3 Repair & Engineering 469.4 Integrated Solutions 382.4 Aviation Services 1,316.1 Expeditionary Services (a) 131.9 Total Sales $1,448.0 (a) Restated to reflect the