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 defined in the Private Securities Lit
Slide 3: FY 2024 highlights
FY 2024 highlights • Strong year of continued execution against our Sales $2.3 B +17% growth strategy • Increased market share in Distribution Adj EBITDA 10.4% +90bps • Drove continued efficiency gains in airframe margin maintenance Adj op • Significantly expanded our component repair margin 8.3% +8
Slide 4: Q4 2024 highlights
Q4 2024 highlights • Continued execution against long-term initiatives As compared to Q4 2023 Sales $657 M +19% Strong organic growth in Distribution (16%) and government Integrated Solutions (11%) Organic margin expansion in Parts Supply and airframe maintenance Adj EBITDA 11.6% +200bps margin
Slide 5: Parts Supply
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% + 130 bps • Sales up 9% vs. Q4 ’23 Announced multi-year contract extension and expansion with Sumitomo USM up 1% Precision Products to distribute its V2500 starter and valve componen
Slide 6: Repair & Engineering
Repair & Engineering $ millions Fiscal Q4 Y/Y delta Sales $216.4 + $73.4 Adj op income $24.8 + $15.3 Adj op margin (%) 11.5% + 490 bps • Sales growth driven by Product Support acquisition Strong demand for airframe heavy maintenance Broke ground on hangar capacity expansions at both Miami and Okla
Slide 7: Integrated Solutions
Integrated Solutions $ millions Fiscal Q4 Y/Y delta Adj sales $163.5 + $15.2 Adj op income $9.3 - ($0.8) Adj op margin (%) 5.6% - (120 bps) • Sales up 10% vs. Q4 ’23 Commercial programs up 2% Government programs up 11% • Key drivers Integrated aftermarket sustainment demand • Adjusted operatin
Slide 8: Organic targets for next 3-5 years
Organic targets for next 3-5 years Maintaining sales and adjusted EPS growth targets; raising adjusted margin target Robust structural tailwinds expected to support target adj EPS growth: Previous targets Current targets (July 20, 2023) • Growth in air travel • Multiple levers to enhance market shar
Slide 9: Appendix
<2 AAR Doing It Right’ Appendix
Slide 10: Non-GAAP financial measures
Non-GAAP financial measures This presentation includes financial results for the Company with respect to adjusted diluted earnings per share from continuing operations, adjusted sales, adjusted EBITDA and adjusted operating income, which are “non-GAAP financial measures” as defined in Regulation G o
Slide 11: Non-GAAP financial measures: FY24 adjusted sales, operating income, EBITDA
Non-GAAP financial measures FY24 adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped ($ in millions) Supply R&E Solutions Svcs Corp Consol Supply R
Slide 12: Non-GAAP financial measures: FY23 adjusted sales, operating income, EBITDA
Non-GAAP financial measures FY23 adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin 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 millions) Supply R&E Solutions Svcs Corp Consol Supply R
Slide 13: Adjusted EBITDA and EBITDA margin
Non-GAAP financial measures Adjusted EBITDA and EBITDA margin ($ 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 $90.2 Income from discontinued operations - - - (0.4) Income t
Slide 14: Adjusted diluted earnings per share from continuing operations
Non-GAAP financial measures Adjusted diluted earnings per share from continuing operations ($ 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 amortization expenses 0.52 0.15 1.21 0.21 Investigation and