Slide 1: Third Quarter Fiscal Year 2026 Earnings Call
Third Quarter Fiscal Year 2026 Earnings Call March 24, 2026
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: Q3 Key Messages
Q3 Key Messages 1 More focused business model is delivering stronger, more durable results in commercial and government end markets 2 Total sales +25%, adj. operating income +31%, adj. EBITDA +26%, and adj. EPS +26% year-over-year in Q3 3 Continuing to execute across key initiatives advancing our st
Slide 4: Q3 Highlights
Q3 Highlights Optimized Portfolio Driving Growth and Profitability Parts Supply • New parts Distribution +36% organic revenue growth Q3 RESULTS • New parts Distribution to government customers +55% • ADI outpacing expectations, reporting accretive adj. operating +25% margins in the quarter Adjusted
Slide 5: AAR Results
AAR Results Q3 Sales and Profitability Adj. Sales (M) Adj. EBITDA (M) Adj. Op. Income (M) Adj. EPS & Margin (%) & Margin (%) +25% +26% +31% +26% $1.25 $845.1 $102.1 $86.2 $674.2 $81.2 $0.99 $65.6 12.1% 10.2% 12.0% 9.7% +10bps +50bps Q3 FY25 Q3 FY26 Q3 FY25 Q3 FY26 Q3 FY25 Q3 FY26 Q3 FY25 Q3 FY26 Con
Slide 6: Parts Supply
Parts Supply Q3 Sales and Profitability Sales (M) Adj. EBITDA (M) & Adj. Op. Income (M) Margin (%) & Margin (%) +45% • Above-market sales growth +59% +56% in new parts Distribution $392.5 • +36% new parts Distribution $58.5 organic growth $53.6 $270.7 • +55% organic growth in new parts Distribution
Slide 7: Repair & Engineering
Repair & Engineering Q3 Sales and Profitability Sales (M) Adj. EBITDA (M) & Adj. Op. Income (M) Margin (%) & Margin (%) +23% • Strategic Component MRO +5% +7% wins with major U.S. and $265.3 international carriers $215.9 • Completed expansion and $27.9 $29.3 $25.6 began aircraft inductions at $23.9
Slide 8: Integrated Solutions
Integrated Solutions Q3 Sales and Profitability Sales (M) Adj. EBITDA (M) & Adj. Op. Income (M) Margin (%) & Margin (%) +3% • Trax delivered strong +18% +25% recurring revenue growth and margin growth $162.9 $167.8 • Favorable Government Programs mix towards $19.1 $15.5 higher margin activities $16.
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Q3 FY26 ending net leverage of Net Leverage 2.17x 2.5 Q3 FY26 Cash from Operations 2.0 $75M Target net 3.06 2.82 leverage 2.72 2.49 2.17 Q3 FY26 net debt outstanding $817M Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 See Appendix for calculation of net leverage and reconciliation
Slide 10: Q4 and FY2026 Outlook
Q4 and FY2026 Outlook Q4 FY26 GUIDANCE FY2026 GUIDANCE Prior Current as of Jan 6, 2026 as of Mar 24, 2026 Approaching Total adj. sales growth 19% – 21% Total sales growth 17% ~19% Approaching Organic adj. sales growth1 6% – 8% Organic sales growth1 11% ~12% Adjusted operating margin 10.2% – 10.5% Es
Slide 11: AAR Investor Day 2026
AAR Investor Day 2026 Showcasing AAR’s repositioned portfolio, focused strategy, and differentiated culture. May 12, 2026 – New York, NY © 2026 AAR CORP. All rights reserved worldwide 11
Slide 12: Appendix
Appendix © 2026 AAR CORP. All rights reserved worldwide. 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes financial results for the Company with respect to adjusted sales, 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 Reg
Slide 14: Non-GAAP Financial Measures: Adjusted diluted earnings per share
Non-GAAP Financial Measures Adjusted diluted earnings per share Q3 FY26 Q3 FY25 Diluted earnings (loss) per share $1.71 ($0.25) Acquisition, integration, and amortization expenses 0.39 0.21 Bargain purchase gain (0.90) Gain on sale of headquarters building (0.25) Impairment charge related to product
Slide 15: Non-GAAP Financial Measures: Adjusted operating income and EBITDA
Non-GAAP Financial Measures Adjusted operating income, operating margin, EBITDA, and EBITDA margin Q3 FY26 Q3 FY25 Parts Repair & Integrated Expeditionary Corporate Parts Repair & Integrated Expeditionary Corporate ($ in millions) Supply Engineering Solutions Services & Other Consolidated Supply Eng
Slide 16: Non-GAAP Financial Measures: Trailing twelve months Adjusted EBITDA
Non-GAAP Financial Measures Trailing twelve months Adjusted EBITDA FY24 FY25 FY26 Full Twelve months ended ($ in millions) Q4 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q3 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Net income (loss) $9.1 $18.0 ($30.6) ($8.9) $34.0 $12.5 $34.4 $34.6 $68.0 ($12.4) $28.9 $94.1 $171.0 Income tax expe
Slide 17: Net Leverage
Net Leverage FY25 FY26 ($ in millions) Q3 Q4 Q1 Q2 Q3 Total debt $1,032.0 $977.0 $1,030.0 $960.0 $895.0 Less: cash and cash equivalents (84.4) (96.5) (80.0) (75.6) (78.5) Net debt $947.6 $880.5 $950.0 $884.4 $816.5 Adjusted EBITDA for the twelve months ended $309.7 $324.2 $337.2 $355.3 $376.2 Net de