Slide 1: Third Quarter Fiscal Year 2025 Earnings Call
Third Quarter Fiscal Year 2025 Earnings Call March 27, 2025 © 2025 AAR CORP. All rights reserved worldwide. 1
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: Third quarter FY25 performance highlights
Third quarter FY25 performance highlights Adjusted EBITDA of $81 Record third quarter sales million, 39% higher than of $678 million; 20% the same quarter last year; increase from Q3 FY2024 Adjusted EBITDA margin increased to 12.0% from 10.3% the prior year quarter Q3 FY25 adjusted EPS Reduced net l
Slide 4: Optimized portfolio driving growth and profitability
Optimized portfolio driving growth and profitability Parts Supply Repair & Engineering Integrated Solutions Financial highlights Financial highlights Financial highlights • Q3 sales of $271 million; higher by • Q3 sales of $216 million; higher by 53% • Q3 sales of $163 million; slightly lower by 12%
Slide 5: Third quarter FY25 performance highlights
Third quarter FY25 performance highlights $ 28 Sales by segment (M) Adjusted EBITDA (M) Adjusted operating Adjusted EPS income (M) $162.9 800 Up 20% Up 39% Up 39% $ 81.2 $65.6 $ 0.99 700 $678.2 $28.7 $ 0.85 600 $ 567.3 $162.9 16 % $18.7 $ 58.6 YoY 500 12% $47.2 9.7% $165.5 margin margin 400 $215.9 $
Slide 6: Parts Supply
Parts Supply Sales and profitability Sales (M) Adjusted EBITDA (M) Adjusted operating Parts Supply income (M) Up 12% $ 36.8 Up 12% $ 270.7 $ 33.0 Up 10% $ 34.3 $ 242.3 $ 31.1 13.6 % 13.6 % margin margin 12.8 % 12.7 % margin margin Strong demand for aftermarket parts Continued strong growth in new pa
Slide 7: Repair & Engineering
Repair & Engineering Sales and profitability Adjusted operating Repair & Engineering Sales (M) Adjusted EBITDA (M) income (M) Up 53% Up 110% $ 215.9 $ 27.9 $ 140.8 Up 108% $ 23.9 12.9 % Product Support acquisition margin 11.1 % driving sales and margin margin expansion $ 13.3 Product Support acquisi
Slide 8: Integrated Solutions
Integrated Solutions Sales and profitability Adjusted EBITDA (M) Adjusted operating Integrated Solutions Sales (M) income (M) Up 11% $ 165.5 $ 16.2 $ 162.9 $ 14.6 Up 11% 9.9 % $ 12.4 margin 8.8 % $ 11.2 Commercial and Govt. margin program activity down slightly 7.6 % margin Strong margin performance
Slide 9: Balance sheet highlights
Balance sheet highlights Pro forma net debt to pro forma adjusted EBITDA Pro forma net leverage reduced sequentially to 3.06x Lower by 0.52x 3.58 3.30 3.31 3.17 3.06 Pro forma net leverage decreased 0.52x in year since Product Support acquisition Target net leverage of 2.0 – 2.5x March 1, 2024 Q4 FY
Slide 10: Q3 summary and Q4 FY25 guidance
Q3 summary and Q4 FY25 guidance Q3 Summary Q4 FY25 Guidance • Exceptional performance in new parts • Sales growth of mid-single digits from Distribution and Airframe MRO same quarter last year • Product Support integration on track • High single-digits excluding Landing Gear • Q4 adjusted operating
Slide 11: Appendix
“| ° «2 AAR Doing It Right’ Appendix
Slide 12: Non-GAAP financial measures
Non-GAAP financial measures This presentation includes financial results for the Company with respect to adjusted diluted earnings per share, adjusted EBITDA and adjusted operating income, which are “non-GAAP financial measures” as defined in Regulation G of the Securities Exchange Act of 1934, as a
Slide 13: Non-GAAP financial measures
Non-GAAP financial measures Adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin © 2024 AAR CORP. All rights reserved worldwide. 9
Slide 14: Non-GAAP financial measures
Non-GAAP financial measures Adjusted EBITDA and EBITDA margin © 2024 AAR CORP. All rights reserved worldwide. 11
Slide 15: Non-GAAP financial measures
Non-GAAP financial measures Adjusted diluted earnings per share © 2024 AAR CORP. All rights reserved worldwide. 12
Slide 16: Pro forma net debt to pro forma EBITDA
Pro forma net debt to pro forma EBITDA