Slide 1: Fourth Quarter Fiscal Year 2025 Earnings Call
Fourth Quarter Fiscal Year 2025 Earnings Call July 16, 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: Q4 and FY25 Highlights
Q4 and FY25 Highlights Delivered Refined and Driving Trax software Consistently outstanding optimized our above-market solution is reducing net financial portfolio growth in our capturing new leverage, with performance in • Substantially Distribution business wins clear path to Q4 and FY25 integrate
Slide 4: FY25 Financial Results
FY25 Financial Results Adj. Sales (B) Adj. EBITDA (M) Adj. EPS Net Leverage and Margin UP UP UP 20% 34% $2.8 $324 17% $3.91 $2.3 3.30x $242 $3.33 2.72x 10.4% 11.8% FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 See Appendix for reconciliation of Non-GAAP financial measures. Margin © 2025 AAR CORP. All righ
Slide 5: Executing on Our Strategic Objectives
Executing on Our Strategic Objectives Optimized portfolio driving growth and profitability Objectives Q4 Updates FY25 Results Market share gains • Extended exclusive agreement with FTAI to provide CFM56 engine and new business wins • material to aviation aftermarket through 2030 Signed Supply Chain
Slide 6: Fourth quarter FY25 performance highlights
Fourth quarter FY25 performance highlights Adj. Sales by Adj. EBITDA (M) Adj. Operating Adj. EPS Segment (M) Income (M) UP UP 19% 12% $90.9 UP UP 32% $735.8 25% $1.16 $658.8 $26.3 $76.4 $76.9 $16.3 $181.4 $165.8 $61.3 $0.88 $222.6 $216.4 $260.3 $305.5 11.6% 12.4% 9.3% 10.5% Q4 FY24 Q4 FY25 Q4 FY24 Q
Slide 7: Parts Supply
Parts Supply Q4 Sales and profitability Sales (M) Adj. EBITDA (M) Adj. Operating Income (M) UP UP UP 41% 17% 36% $49.7 $305.5 $52.1 $260.3 $38.4 $35.2 Parts Supply • Strong demand for aftermarket parts • Continued strong growth in new parts Distribution • Growth in USM sales 14.8% 17.1% 13.5% 16.3%
Slide 8: Repair & Engineering
Repair & Engineering Q4 Sales and profitability Sales (M) Adj. EBITDA (M) Adj. Operating DOWN Income (M) UP 6% 3% $222.6 $28.3 DOWN $216.4 $26.7 6% $24.8 $23.3 Repair & Engineering • Growth excluding Landing Gear sale of 8% • Exited NY component repair facility to consolidate operations, resulting i
Slide 9: Integrated Solutions
Integrated Solutions Q4 Sales and profitability Adj. Sales (M) Adj. EBITDA (M) Adj. Operating Income (M) UP 10% UP $181.5 13% $165.8 $14.2 $12.6 UP 15% $10.7 $9.3 Integrated Solutions • Growth in both government and commercial activities • Mix benefit from growth resulted in expanded margins • Conti
Slide 10: Balance sheet highlights Net Leverage
Balance sheet highlights Net Leverage LOWER BY Pro forma net leverage reduced 0.86x sequentially to 2.72x 3.58 3.30 3.31 3.17 3.06 2.72 Pro forma net leverage decreased 2.5 0.86x in year since 2.0 Product Support acquisition Expect to achieve target net leverage in FY26 Target net leverage of March
Slide 11: Strategic objectives for FY26
Strategic objectives for FY26 Market share gains and • Win market share via new business wins in new parts Distribution new business wins • Complete Oklahoma City hangar expansion; progress on Miami hangar • Drive Component Services volume through cross selling • New business wins in Integrated Solu
Slide 12: 2026 Dynamics
2026 Dynamics Q1 2026 Guidance AAR Framework for 2026 Growing above-market (mid-teens) in both Distribution commercial and government Sales growth1 6% - 11% Parts Supply Dynamic environment persists through USM Note that Q1 is a seasonally FY26 slower sales quarter Full utilization with additional c
Slide 13: Appendix
Appendix © 2025 AAR CORP. All rights reserved worldwide. 13
Slide 14: 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, adjusted operating income, adjusted EBITDA margin, and net leverage which are “non-GAAP financial measures” as defined in Regulation G of the
Slide 15: Non-GAAP financial measures: adjusted diluted EPS
Non-GAAP financial measures Adjusted diluted earnings per share Q4 FY25 Q4 FY24 FY25 FY24 Diluted earnings per share $0.95 $0.26 $0.35 $1.29 Acquisition, integration, and amortization expenses 0.09 0.52 0.74 1.21 Losses related to sale and exit of business/joint venture, net 0.20 0.01 1.97 0.07 Gove
Slide 16: FY25 adjusted sales, operating income and EBITDA
Non-GAAP financial measures FY25 Adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 FY25 Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped ($ in millions) Supply R&E Solutions Svcs Corp Consol Supply R
Slide 17: FY24 adjusted sales, operating income and 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 18: Net Leverage
Net Leverage ($ in millions) Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Total debt $277.0 $997.0 $992.0 $997.0 $1,032.0 $977.0 Less: cash and cash equivalents (69.2) (85.8) (49.3) (61.7) (84.4) (96.5) Net debt $207.8 $911.2 $942.7 $935.3 $947.6 $880.5 Adjusted EBITDA for the twelve months ended