Slide 1: Investor Presentation April 2025
Investor Presentation April 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: AAR at a glance
AAR at a glance A leading independent aviation aftermarket services provider Attractive Business Mix Unique Value Proposition with Connected Business Model • Pure play provider of aviation Sales by Segment aftermarket services Expeditionary Services 3% • Diversified mix of 71% commercial Integrated
Slide 4: What we do
What we do Operate across 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 • Leading independent • Largest independent • Diverse capabilitie
Slide 5: Business highlights
Business highlights Parts Supply Repair & Engineering Integrated Solutions Financial statistics (Q3 FY25 LTM) Financial statistics (Q3 FY25 LTM) Financial statistics (Q3 FY25 LTM) • Sales of $1,054 million • Sales of $879 million • Sales of $659 million • Adjusted EBITDA of $141.8 million • Adjusted
Slide 6: 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 7: 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 8: 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 9: 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 $242 11
Slide 10: Appendix
Appendix © 2025 AAR CORP. All rights reserved worldwide. 10
Slide 11: Non-GAAP financial measures
Non-GAAP financial measures Adjusted sales, adjusted operating income, adjusted operating margin, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma EBITDA, net debt, net debt to adjusted EBITDA, and pro forma net debt to adjusted EBITDA are “non-GAAP fi
Slide 12: Non-GAAP financial measures
Non-GAAP financial measures Twelve months ended Q3-24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Twelve months ended Q3 FY24 Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped Parts Integ Exped ($ in millions) Supply R&E Solutions Svcs Corp Consol Supply R&E Solutions Svcs Corp Consol Supp
Slide 13: Non-GAAP financial measures
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 14: Adjusted EBITDA: FY20 through FY22
Non-GAAP financial measures Adjusted EBITDA: FY20 through FY22 ($ in millions) 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 $541.5 $560.9 $553.1 $416.5 $400.8 $403.6 $410.3 $437.6 $455.1 $436.6 $452.2 $476.1 $1,820.0 Net income (loss) 4.4
Slide 15: Adjusted EBITDA: FY23 through FY25
Non-GAAP financial measures Adjusted EBITDA: FY23 through FY25 ($ 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 16: Adjusted diluted earnings per share: 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 17: Adjusted diluted earnings per share: 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 18: 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. 18