Aar Corp. · NYSE:AIR
Aar — Investor Presentation (December 2025)
29 slides from Aar's investor presentation, Dec 5, 2025
Slide 1: Investor Presentation
Investor Presentation December 5, 2025
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: Today's Presenters
Today’s Presenters John Holmes Sean Gillen Chairman, President & CEO Senior Vice President, Chief Financial Officer © 2025 AAR CORP. All rights reserved worldwide 3
Slide 4: AAR Business Overview
AAR Business Overview Leading, Independent, Pure-play Aviation Aftermarket Services Provider Sales by Segment… …by Customer Type …by Geography AIR NYSE Ticker Other Expeditionary Services APAC $2.7B Parts Supply Government EMEA FY2025 Adj. Sales Integrated Solutions $324M Repair & Engineering Commer
Slide 5: Aviation Aftermarket Represents a Large, High-Growth Opportunity
Aviation Aftermarket Represents a Large, High-Growth Opportunity MARKET DRIVERS ✓ Strong air travel growth Global MRO Total Addressable Market $138B ✓ Growing and aging global aircraft fleet $123B Airframe Heavy & Modifications ✓ New aircraft delivery constraints further Line Maintenance extending a
Slide 6: Positioning AAR as Aviation Aftermarket Services Leader
Positioning AAR as Aviation Aftermarket Services Leader Focused on High Growth and Strong Margin Segments Legacy AAR Current: Re-Focused Aftermarket Platform Positioned for Growth and Margin Expansion • Less focused revenue mix • Focused, connected portfolio in core aftermarket • Pure play provider
Slide 7: Overview of AAR's Core Segments
Overview of AAR’s Core Segments Segment Parts Supply Repair & Engineering Integrated Solutions • Parts Distribution: New parts under exclusive • Airframe MRO: Largest North American MRO • Government Services: Provides complex logistics arrangements with OEM partners and supply chain support programs
Slide 8: Parts Supply Segment Overview
Parts Supply Government Segment Overview New Parts Distribution Used Serviceable Material • Distributor of new expendable parts to aftermarket • Largest independent provider of USM to aftermarket • 90% long-term, exclusive agreements with OEMs and ~100% renewal rate(1) • Acquire used aircraft and en
Slide 9: ADI Acquisition Accelerates AAR's Strategy to Penetrate New Parts Distribution
ADI Acquisition Accelerates AAR’s Strategy to Penetrate New Parts Distribution1 Transaction Overview • On September 25, 2025, AAR acquired ADI for $146M in an all-cash transaction funded using the Company’s existing revolving credit facility • ADI is a global distributor of high-performance electron
Slide 10: Repair & Engineering Segment Overview
Repair & Engineering Segment Overview Airframe MRO Component Services • Largest independent North American MRO • Diverse capabilities include engine accessories, airframe structures and components • Primarily narrowbody aircraft; need to be maintained in region • High value, complex repairs on curre
Slide 11: HAECO Americas Acquisition Expands AAR's Heavy Maintenance Footprint
HAECO Americas Acquisition Expands AAR’s Heavy Maintenance Footprint Transaction Overview • On November 3, 2025, AAR acquired HAECO Americas for $78M in an all-cash transaction, representing a high single-digit multiple of HAECO Americas’ LTM EBITDA1 • HAECO Americas is the second largest heavy main
Slide 12: Integrated Solutions Segment Overview
Integrated SolutionsGovernment Segment Overview Government Trax • Supports the U.S. DoD and foreign governments • Trax offers critical software applications to a diverse global with AAR’s commercial expertise, providing customer base of airlines, MROs, and government aircraft customized performance-
Slide 13: Strategic Objectives for FY26
Strategic Objectives for FY26 Market share gains and • Win market share via new business wins in new parts Distribution new business wins • Complete Oklahoma City hangar expansion; progress on Miami hangar • Drive Component Services volume through cross selling • New business wins in Integrated Solu
Slide 14: Financial Overview
Financial Overview AAR
Slide 15: First Quarter FY26 Highlights
First Quarter FY26 Highlights Objectives Q1 Updates First Quarter FY26 Performance Highlights Adj. Sales1 by Segment ($M) Adj. EBITDA ($M) Market share gains • Secured multi-year exclusive defense agreement with Adj. Organic Sales Growth Up and new business AmSafe Bridport to distribute their produc
Slide 16: 2026 Dynamics
2026 Dynamics Q2 2026 Guidance AAR Framework for 2026 Continued strong growth in both Distribution commercial and government Sales growth1 7% - 10% Parts Supply Dynamic environment persists through USM FY26 Adjusted 9.6% - 10.0% operating margin Full utilization with additional capacity Airframe MRO
Slide 17: FY25 Financial Results
FY25 Financial Results Adj. Sales ($B) Adj. EBITDA ($M) and Adj. EPS Pro-Forma Adjusted Margin Net Leverage +34% +18% $324 $2.7 +17% $3.91 3.30x $2.3 $3.33 2.72x $242 11.8% 10.4% FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 Note: See Appendix for reconciliation of Non-GAAP financial measures. AAR deliver
Slide 18: Successfully Delivering Accelerating Growth and Margin Expansion
Successfully Delivering Accelerating Growth and Margin Expansion Adj. Sales ($M) Adj. EBITDA ($M) and Margin ✓ Strong execution driving significant Adjusted EBITDA 14.8% $2,748 27.5% margin expansion CAGR $324 CAGR $2,321 ✓ Growth in Distribution and improved efficiency in $1,991 $242 $1,817 11.8% A
Slide 19: Disciplined Balance Sheet Management and Capital Allocation Priorities
Disciplined Balance Sheet Management and Capital Allocation Priorities Pro-Forma Adjusted Net Leverage Capital Allocation Priorities Successfully delevered in five quarters post Triumph acquisition Maintain Flexible Balance Sheet2 (0.9)x • Target Pro-Forma Adjusted Net Leverage ratio of ~2.0x – 2.5x
Slide 20: AAR's Acquisition Strategy Supports Growth Objectives
AAR’s Acquisition Strategy Supports Growth Objectives Strategic Criteria Financial Criteria • New parts distribution, particularly with • Growth and/or margin accretive exclusive arrangements • After-tax IRR exceeds target’s • Expand MRO capabilities WACC • Accelerates strategic priorities • Max net
Slide 21: Strategically Positioned for Growth and Expanding Margins
Strategically Positioned for Growth and Expanding Margins 5 Plannin g 4 Plannin Strategic g 3 Plannin M&A Software and IP g 2 Plannin enabled g Cost efficiency offerings: 1 Plannin and synergy Trax, PMA g Market share realization $324 gains and new Strong $242 11.8% market business wins $190 10.4% $
Slide 22: Appendix
Appendix
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures FY25 and FY24 Adjusted Sales, EBITDA, and EBITDA Margin FY25 FY24 Parts Integ Exped Parts Integ Exped ($ in millions) Supply R&E Solutions Svcs Corp Consol Supply R&E Solutions Svcs Corp Consol Sales $1,099.6 $884.9 $695.3 $100.7 $0.0 $2,780.5 $967.0 $640.1 $641.9 $69.9 $
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures FY15 Sales by Segment FY15 ($ in millions) Parts Supply $464.3 Repair & Engineering 469.4 Integrated Solutions 382.4 Aviation Services 1,316.1 Expeditionary Services1 131.9 Total Sales $1,448.0 1 Restated to reflect the reclassification of our Contractor-Owned, Contractor
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA: FY15 and FY22 Through FY25 ($ in millions) FY15 FY22 FY23 FY24 FY25 Sales $1,448.0 $1,820.0 $1,990.5 $2,318.9 $2,780.5 Net income 10.2 78.7 90.2 46.3 12.5 Net income margin 0.7% 4.3% 4.5% 2.0% 0.4% Sales $1,448.0 $1,820.0 $1,990.5 $2,318.9 $2,780.5 Contra
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Pro-Forma Adjusted Net Leverage Total debt $277.0 $997.0 $992.0 $997.0 $1,032.0 $977.0 $1,030.0 Less: cash and cash equivalents (69.2) (85.8) (49.3) (61.7) (84.4) (96.5) (80.0) Net debt $207.8 $911.2 $942.7 $935.3 $947.6 $880.5 $950.0 Adjusted EBITDA for the twelve months
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Sales, Operating Income, Operating Margin, EBITDA, and EBITDA Margin Q1 FY26 Q1 FY25 Parts Repair & Integrated Expeditionary Corporate Parts Repair & Integrated Expeditionary Corporate ($ in millions) Supply Engineering Solutions Services & Other Consolidated Sup
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Earnings per Share Q1 FY26 Q1 FY25 Diluted earnings per share $0.95 $0.50 Acquisition, integration, and amortization expenses 0.18 0.25 Severance charges 0.03 - Gain related to sale of business/joint venture (0.02) (0.03) Government COVID-related subsidy liabilit
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Organic Sales Growth: Q1 FY26 Q1 FY26 ($ in millions) GAAP Sales Growth 11.8% Impact of Landing Gear Overhaul Divestiture 3.3% Organic Sales Growth 15.1% Adjusted Sales Growth 13.4% Impact of Landing Gear Overhaul Divestiture 3.4% Adjusted Organic Sales Growth 16