Slide 1: Fiscal Q4 and 2024 Earnings Call
Fiscal Q4 and 2024 Earnings Call NYSE: AIR July 18, 2024
Slide 2: Forward-looking statements
Forward - looking statements Note: All results and expectations in the presentation reflect continuing operations unless otherwise noted. This presentation contains certain statements relating to future results, which are forward - looking statements as that term is d efined in the Private Securitie
Slide 3: FY 2024 highlights
FY 2024 highlights See Appendix for reconciliation of Non - GAAP financial measures • Strong year of continued execution against our growth strategy • Increased market share in Distribution • Drove continued efficiency gains in airframe maintenance • Significantly expanded our component repair capab
Slide 4: Q4 2024 highlights
Q4 2024 highlights As compared to Q4 2023 • Continued execution against long - term initiatives • Solid results across our portfolio • Triumph Product Support business integration proceeding well Sales $657 M +19% Adj op margin 9.3% +150bps Adj EPS $0.88 +6% » Strong organic growth in Distribution (
Slide 5: Parts Supply
• Sales up 9% vs. Q4 ’23 » USM up 1 % » Distribution up 16% • Adjusted operating income up 21% vs. Q4 ’23 » Favorable mix in Distribution » Additional leverage on fixed costs Parts Supply $ millions Fiscal Q4 Y / Y delta Sales $260.3 + $21.7 Adj op income $35.2 + $6.2 Adj op margin (%) 13 . 5 % + 13
Slide 6: Repair & Engineering
• Sales growth driven by Product Support acquisition » Strong demand for airframe heavy maintenance » At full capacity in airframe hangars • Both inorganic and organic margin expansion » Contribution from higher margin Product Support » Efficiency gains in airframe hangars Repair & Engineering Broke
Slide 7: Integrated Solutions
• Sales up 10% vs. Q4 ’23 » Commercial programs up 2% » Government programs up 11% • Adjusted operating income down 8% vs. Q4 ’23 » Lower profitability on WASS State Department program based on mix of products and services Integrated Solutions 6 Structural margin opportunities driven by Trax; strong
Slide 8: Organic targets for next 3-5 years
Organic targets for next 3 - 5 years Maintaining sales and adjusted EPS growth targets; raising adjusted margin target Robust structural tailwinds expected to support target adj EPS growth: • Growth in air travel • Multiple levers to enhance market share: unique exclusive distribution model resonati
Slide 9: Appendix
“A : «2 AAR Doing It Right’ Appendix
Slide 10: Non-GAAP financial measures
Non - GAAP financial measures This presentation includes financial results for the Company with respect to adjusted diluted earnings per share from continuing operations, adjusted sales, adjusted EBITDA and adjusted operating income, which are “non - GAAP financial measures” as defined in Regulation
Slide 11: FY24 adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin
Non - GAAP financial measures FY24 adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin 10 © 202 4 AAR CORP. All rights reserved worldwide. Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped ($ in mi
Slide 12: FY23 adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin
Non - GAAP financial measures FY23 adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin 11 © 202 4 AAR CORP. All rights reserved worldwide. Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped ($ in mi
Slide 13: Adjusted EBITDA and EBITDA margin
Non - GAAP financial measures Adjusted EBITDA and EBITDA margin 12 © 202 4 AAR CORP. All rights reserved worldwide. ($ in millions) Q4 FY24 Q4 FY23 FY24 FY23 Sales $656.5 $553.3 $2,318.9 $1,990.5 Net income 9.1 23.2 46.3 90.2 Net income margin 1.4% 4.2% 2.0% 4.5% Net income $9.1 $23.2 $46.3 $90.2 In
Slide 14: Adjusted diluted earnings per share from continuing operations
Non - GAAP financial measures Adjusted diluted earnings per share from continuing operations 13 © 202 4 AAR CORP. All rights reserved worldwide. ($ in millions) Q4 FY24 Q4 FY23 FY24 FY23 Diluted earnings per share from continuing operations $0.26 $0.66 $1.29 $2.52 Acquisition, integration and amorti