Slide 1: Fourth Quarter Fiscal Year 2026 Earnings Call
Fourth Quarter Fiscal Year 2026 Earnings Call July 21, 2026
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: Key Messages
Key Messages 1 Connected platform approach focused on parts, repair, and software delivering higher, more profitable growth 2 Total adj. sales +26%, adj. EBITDA +27%, adj. operating income +27%, and adj. EPS +32% year-over-year in Q4 3 Expect continued double-digit sales growth and further margin ex
Slide 4: Q4 Highlights
Q4 Highlights Optimized Portfolio Driving Growth and Profitability Q4 Results • Delivered outstanding performance in Q4 and FY 2026 Adj. Sales (M) $928 • Record adj. sales of $928M, +26% YoY Adj. Sales growth 26% driven by growth across key parts, repair, and software activities Adj. EBITDA (M) $116
Slide 5: AAR Results
AAR Results FY 2026 Sales and Profitability Adj. Sales (M) Adj. EBITDA (M) Adj. Op. Income (M) Adj. EPS & Margin (%) & Margin (%) +20% +24% +27% +29% $3,308 $401 $5.05 $337 $2,748 $324 $3.91 $265 12.1% 10.2% 11.8% 9.6% +30 bps +60 bps FY 2025 FY 2026 FY 2025 FY 2026 FY 2025 FY 2026 FY 2025 FY 2026 C
Slide 6: Executing on Our Strategic Objectives
Executing on Our Strategic Objectives WIN LEVERAGE SCALE MORE CORE OUR PLATFORM WITH DISCIPLINE • Signed exclusive Distribution agreement • Launched Airvoyant, an AI-driven • HAECO Americas integration remains with Woodward for LEAP, GEnx, and CF34 procurement solution for airlines and ahead of sche
Slide 7: Parts Supply
Parts Supply Q4 Sales and Profitability Sales (M) Adj. EBITDA (M) & Adj. Op. Income (M) Margin (%) & Margin (%) +39% • Continued above-market $423.8 +18% +14% organic sales growth in new parts Distribution of +19% $61.7 • New parts Distribution sales to $56.5 commercial customers +28% $305.5 $52.1 o
Slide 8: Repair, Engineering, & Software
Repair, Engineering, & Software Q4 Sales and Profitability Sales (M) Adj. EBITDA (M) & Adj. Op. Income (M) Margin (%) & Margin (%) • Record sales in +35% Component MRO +29% +29% $314.4 • Airframe MRO organic $36.0 growth driven by volume & $31.3 capacity increases $232.7 $28.0 • Strong recurring rev
Slide 9: Government Solutions
Government Solutions Q4 Sales and Profitability Sales (M) Adj. EBITDA (M) & Adj. Op. Income (M) Margin (%) & Margin (%) (8%) • Sales driven by decline in +58% +61% WASS1 program as newer programs continue to ramp $141.5 $130.2 • Better program mix driving $20.8 $18.7 substantial margin improvement $
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights Q4 FY26 ending net leverage of 2.03x Net Leverage Q4 FY26 adj. operating cash flow $58M 2.5 2.0 Target net leverage Q4 FY26 net debt outstanding 2.72 2.82 2.49 2.17 $816M 2.03 FY 2026 adj. operating cash flow % of adj. EBITDA Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 24% See A
Slide 11: Q1 FY27 Outlook
Q1 FY27 Outlook Q1 FY27 Guidance Q1 FY27 comments • Continued strength in higher-growth activities like new parts Distribution Total sales growth (ex. LCP)1 21% – 23% and Software • Recent acquisitions contributing to Adj. EBITDA margin (ex. LCP)2 12.25% – 12.75% year over year revenue growth Estima
Slide 12: FY 2027 Outlook
FY 2027 Outlook FY 2027 Guidance 3-year target2 Low double-digits Total sales growth (ex. LCP)1 to low teens 8 – 12% FY 2027 • Commercial flight activity • Miami Airframe MRO consistent with recent expansion inductions begin in comments averages Q2 • Continued strength in new • HAECO Americas integr
Slide 13: © 2026 AAR CORP. All rights reserved worldwide
© 2026 AAR CORP. All rights reserved worldwide 13
Slide 14: Appendix
Appendix © 2026 AAR CORP. All rights reserved worldwide. 14
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes financial results for the Company with respect to adjusted sales, adjusted diluted earnings per share, adjusted EBITDA, adjusted operating income, adjusted EBITDA margin, adjusted cash from operations, and net leverage which are “non-GAAP financ
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted diluted earnings per share Q4 FY26 Q4 FY25 FY26 FY25 Diluted earnings per share $1.27 $0.95 $4.86 $0.35 Acquisition, integration, and amortization expenses 0.45 0.09 1.40 0.74 Bargain purchase gain 0.16 - (0.77) - Impairment charges and loss on sale of equity inv
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Q4 Adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin by segment Q4 FY26 Q4 FY25 Repair, Legacy Repair, Legacy ($ in millions) Parts Engineering, Government Commercial Corporate Parts Engineering, Government Commercial Corporate Supply and Softw
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted sales, operating income and operating margin ($ in millions) FY25 FY26 Sales $2,780.5 $3,308.0 Operating income (loss) 185.2 277.8 Operating income margin 6.7% 8.4% Sales $2,780.5 $3,308.0 Contract termination cost (benefit) (32.2) - Adjusted sales $2,748.3 $3,30
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Trailing twelve months Adjusted EBITDA FY25 FY26 Full Full Twelve months ended ($ in millions) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 FY26 Q2 FY26 Q3 FY26 Net income (loss) $18.0 ($30.6) ($8.9) $34.0 $12.5 $34.4 $34.6 $68.0 $50.7 $187.7 $28.9 $94.1 $171.0 Income tax expense
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted cash provided by operating activities ($ in millions) Q4 FY26 Q4 FY25 FY26 FY25 Cash provided by operating activities $55.3 $51.4 $98.7 $36.1 Amounts outstanding on accounts receivable financing program: Beginning of period 28.2 20.2 21.3 13.7 End of period (25.7
Slide 21: Net Leverage
Net Leverage FY25 FY26 ($ in millions) Q4 Q1 Q2 Q3 Q4 Total debt $977.0 $1,030.0 $960.0 $895.0 $900.0 Less: cash and cash equivalents (96.5) (80.0) (75.6) (78.5) (84.0) Net debt $880.5 $950.0 $884.4 $816.5 $816.0 Adjusted EBITDA for the twelve months ended $324.2 $337.2 $355.3 $376.2 $401.2 Net debt