Slide 1: Investor Presentation
Investor Presentation June 2025 © 2025 AAR CORP. All rights reserved worldwide. 1
Slide 2: Forward-looking statements
© 1 2 0 2 Forward-looking statements 4 A A Note: All results and expectations in the presentation reflect continuing operations unless otherwise noted. R C This presentation contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Pr
Slide 3: What We Do: Three Core Business Segments
What We Do Three Core Business Segments Parts Supply Repair & Engineering Integrated Solutions Used Serviceable Distribution Airframe MRO Component Services Government Commercial Trax Material (USM) • Distributor of new • Largest independent • Largest independent • Diverse capabilities • Complex • F
Slide 4: AAR Segment Detail
AAR Segment Detail Parts Supply Repair & Engineering Integrated Solutions Sales $1,054M $879M $659M Adjusted $142M $115M $55M EBITDA Adjusted EBITDA 13.4% 13.1% 8.3% Margin Sales Mix Airframe MRO Distribution USM Government Commercial Trax Component Services Note: Financials reflect LTM Q3 FY2025 fi
Slide 5: AAR Transformation: More Focus, More Growth, More Margin
AAR Transformation: More Focus, More Growth, More Margin Past Present Future • Diverse portfolio • Focused, connected portfolio in core • Pure play provider of aftermarket aviation aftermarket aviation services services • Little intellectual property • Exited / restructured multiple non-core • Diffe
Slide 6: Multiple quarters of margin and earnings expansion
Multiple quarters of margin and earnings expansion Quarterly adjusted EBITDA margin ✓ Strong execution driving 11.6%11.3%11.4%12.0% significant Adjusted EBITDA 10.1%10.3% 8.7% 9.1% 9.4% 9.5% 9.6% 9.6% 9.5% margin expansion 7.7% 8.1% 8.4% 7.7% 7.9% 8.1% 8.5% 6.7% 5.1% 5.4% ✓ Growth in Distribution an
Slide 7: Parts Supply: Distribution
Parts Supply Present Future Highlight: Distribution • Long-term agreements • Leverage MRO relationships • Two-way exclusive agreements • Utilize Trax and Digital channels Distribution • True extension of OEMs • Further penetrate Business • Significant scale (~$700M in sales) Aviation, General Aviati
Slide 8: Repair & Engineering: Component Services
Repair & Engineering Highlight: Component Present Future Services • Larger size and scale following Product • Cross-sell services with Parts Supply Component Services Support acquisition and Airframe MRO offerings • Differentiated services with DER and • Invest in capability on Next Generation PMA c
Slide 9: Integrated Solutions: Government, Commercial, Trax
Integrated Solutions Present Future Highlight: Trax • Focused on asset light (government- • Even broader capability with more 130+ Government owned, contractor-operated) model contracts customers • Broader capability across more • Higher win rate and retention due to customer contracts strong past p
Slide 10: Trax: Trusted Supplier Network
Trax: Trusted Supplier Network The Opportunity | Trax Processes: • 800K parts purchase orders per year • $2B+ parts spend pear year Today: Parts Procurement Managed Outside of Trax Outside of Trax Search Third Process Send RFQ Negotiate Party Sites Quotes TRAX Export Create Demand Requisitions Order
Slide 11: Financial Update
Financial Update © 2025 AAR CORP. All rights reserved worldwide. 11
Slide 12: LTM third quarter performance highlights
LTM third quarter performance highlights Growth and margin expansion driving increase in earnings Sales by segment (M) Adjusted operating Adjusted EBITDA (M) income (M) Up 21% $162.9 350 Up 41% $ 2,683 $ 309.7 Up 43% 300 $249.5 $91 2,500 300 $ 2,216 250 $77 $659 250 2,000 $ 219.0 $174.6 $627 200 11.
Slide 13: Capital allocation framework and net leverage
Capital allocation framework and net leverage Pro forma net debt to pro forma adjusted EBITDA • Delevered since Product Support acquisition Maintain flexible • Target net leverage of 2.0x – 2.5x EBITDA balance sheet Lower by 0.52x • Max leverage ratio of ~3.75x EBITDA 3.58x Organic • Support new bus
Slide 14: Clear path to growth and increased profitability
Clear path to growth and increased profitability Multi-pronged growth and margin expansion plan 5 Plannin g 4 Plannin Continued g 3 Plannin M&A Digital and IP g 2 Plannin enabled g Cost efficiency offerings: Trax, 1 Plannin and synergy PMA g Market share realization $310 Strong gains and new $242 11
Slide 15: Appendix
Appendix © 2025 AAR CORP. All rights reserved worldwide. 15
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures Adjusted sales, adjusted operating income, adjusted operating margin, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma EBITDA, net debt, net debt to adjusted EBITDA, and pro forma net debt to adjusted EBITDA are “non-GAAP fi
Slide 17: Non-GAAP financial measures: Twelve months ended Q3-24
Non-GAAP financial measures Twelve months ended Q3-24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Twelve months ended Q3 FY24 Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped ($ in millions) Supply R&E Solutions Svcs Corp Consol Supply R&E Solutions Svcs Corp Consol Supp
Slide 18: Non-GAAP financial measures: Twelve months ended Q3-25
Non-GAAP financial measures Twelve months ended Q3-25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Twelve months ended Q3 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&E Solutions Svcs Corp Consol Supp
Slide 19: Adjusted EBITDA: FY15 and FY20 through FY22
Non-GAAP financial measures Adjusted EBITDA: FY15 and FY20 through FY22 ($ in millions) FY15 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Sales $1,448.0 $541.5 $560.9 $553.1 $416.5 $400.8 $403.6 $410.3 $437.6 $455.1 $436.6 $452.2 $476.1 $1,820.
Slide 20: Adjusted EBITDA: FY23 through FY25
Non-GAAP financial measures Adjusted EBITDA: FY23 through FY25 ($ in millions) Last Twelve Months Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q1 FY25 Q2 FY25 Sales $446.3 $469.8 $521.1 $553.3 $1,990.5 $549.7 $545.4 $567.3 $656.5 $2,318.9 $661.7 $
Slide 21: Adjusted diluted EPS: FY20 through FY22
Non-GAAP financial measures Adjusted diluted earnings per share: FY20 through FY22 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Diluted earnings (loss) per share from continuing operations $0.49 $0.57 $0.07 ($0.43) ($0.40) $0.41 $0.87 $0.41 $0.31 $0
Slide 22: Adjusted diluted EPS: FY23 through FY25
Non-GAAP financial measures Adjusted diluted earnings per share: FY23 through FY25 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Diluted earnings (loss) per share from continuing operations $0.62 $0.64 $0.62 $0.66 ($0.02) $0.67 $0.39 $0.26 $0.50 ($0.87) ($0.
Slide 23: Pro forma net debt to pro forma EBITDA
Non-GAAP financial measures Pro forma net debt to pro forma EBITDA © 2025 AAR CORP. All rights reserved worldwide. 23
Slide 24: FY15 Sales by segment
Non-GAAP financial measures FY15 Sales by segment ($ in millions) Parts Supply $464.3 Repair & Engineering 469.4 Integrated Solutions 382.4 Aviation Services 1,316.1 (a) Expeditionary Services 131.9 Total Sales $1,448.0 (a) Restated to reflect the reclassification of our Contractor-Owned, Contractor