Slide 1: First Quarter Fiscal Year 2026 Earnings Call
First Quarter Fiscal Year 2026 Earnings Call September 23, 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: Q1 Highlights
Q1 Highlights Delivered 17% adjusted New parts Distribution a Captured new business organic sales growth with key driver, generating wins with Trax and margin expansion meaningful double-digit enhanced our growth software capabilities with Aerostrat acquisition See Appendix for reconciliation of Non
Slide 4: Executing on our strategic objectives
Executing on our strategic objectives Optimized portfolio driving growth and profitability Objectives Q1 Updates Q1 Results Market share gains • Secured multi-year exclusive defense agreement with AmSafe Bridport to and new business wins distribute their product lines across the KC-46 and C-40 platf
Slide 5: First quarter FY26 performance highlights
First quarter FY26 performance highlights Adj. Sales by Adj. EBITDA (M) Adj. Operating Adj. EPS Segment (M) Income (M) UP ORGANIC: UP UP UP 17% 18% UP 27% 13% $86.7 21% $1.08 $739.6 $22.0 $71.6 $652.2 $73.7 $16.0 $0.85 $185.0 $59.2 $168.9 $214.6 $217.6 $249.7 $317.8 11.3% 11.7% 9.1% 9.7% Q1 FY25 Q1
Slide 6: Parts Supply
Parts Supply Q1 Sales and profitability Sales (M) Adj. EBITDA (M) Adj. Operating Income (M) UP 27% $317.8 UP UP 36% $249.7 34% $40.9 $43.8 $30.1 Parts Supply $32.7 • Strong demand for aftermarket parts • Continued strong growth in new parts Distribution • USM delivered meaningful 13.1% 13.8% 12.1% 1
Slide 7: Repair & Engineering
Repair & Engineering Q1 Sales and profitability Sales (M) Adj. EBITDA (M) Adj. Operating Income (M) UP DOWN ORGANIC: 1% UP 8% 1% $27.9 $28.1 UP $217.6 $214.6 2% $24.3 $24.9 Repair & Engineering • Organic growth excluding Landing Gear of 8% • Airframe MRO near capacity with strong production efficien
Slide 8: Integrated Solutions
Integrated Solutions Q1 Sales and profitability Sales (M) Adj. EBITDA (M) Adj. Operating Income (M) UP 10% UP $185.0 5% $168.9 $14.2 $13.5 UP 5% $11.0 $10.5 Integrated Solutions • Strong growth in government activities driven by recent new business wins • Continued growth opportunities in Trax 8.0%
Slide 9: Balance sheet highlights Net Leverage
Balance sheet highlights Net Leverage LOWER BY Invested to support growth 0.76x and acquired Aerostrat in 3.58 Q1 3.30 3.31 3.17 3.06 2.72 2.82 Pro forma net leverage 2.82x 2.5 decreased 0.76x since 2.0 Product Support acquisition Expect to achieve target net leverage in FY26 Target net leverage of
Slide 10: 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 11: Appendix
Appendix © 2025 AAR CORP. All rights reserved worldwide. 11
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 sales, organic sales growth, adjusted organic sales growth, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, net debt, pro forma n
Slide 13: Non-GAAP financial measures
Non-GAAP financial measures Adjusted diluted earnings per share Q1 FY26 Q1 FY25 Diluted earnings per share $0.95 $0.50 Acquisition, integration, and amortization expenses 0.18 0.25 Severance charges 0.03 - Gain related to sale of business/joint venture (0.02) (0.03) Government COVID-related subsidy
Slide 14: Non-GAAP financial measures
Non-GAAP financial measures Adjusted sales, operating income, operating margin, EBITDA, and EBITDA margin Q1 FY26 Q1 FY25 Parts Repair & Integrated Expeditionary Corporate Parts Repair & Integrated Expeditionary Corporate ($ in millions) Supply Engineering Solutions Services & Other Consolidated Sup
Slide 15: Adjusted organic sales growth
Adjusted organic sales growth Q1 FY26 Repair & Consolidated Engineering Commercial Government GAAP sales growth 11.8% (1.4%) 10.7% 14.6% Impact of Landing Gear Overhaul divestiture 3.3% 9.6% 4.6% 0.0% Organic sales growth 15.1% 8.2% 15.3% 14.6% Adjusted sales growth (a) 13.4% (1.4%) 10.7% 20.6% Impa
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures Trailing twelve months Adjusted EBITDA Twelve months ended ($ in millions) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 FY25 Q1 FY26 Q3 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q1 FY26 Net income (loss) $23.2 ($0.6) $23.8 $14.0 $9.1 $46.3 $18.0 ($30.6)
Slide 17: Pro Forma Net Leverage
Pro Forma Net Leverage ($ in millions) Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 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 Ad