Aar Corp. · NYSE:AIR
Aar — Investor Presentation (November 2025)
28 slides from Aar's investor presentation, November 2025
Slide 1: Investor Presentation
Investor Presentation November 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 AIR Sales by Segment… …by Customer Type …by Geography 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 Focused on High Growth and Strong Margin Segments
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
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
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 $78M in an all-cash transaction, representing a high single-digit multiple of HAECO Americas’ LTM EBITDA1 • HAECO Americas is the second largest heavy main
Slide 12: Integrated Solutions Government
Integrated SolutionsGovernment Segment Overview Government Trax • Supports the U.S. DoD and foreign governments • Trax offers critical software applications to a diverse global with AAR’s commercial expertise, providing customer base of airlines, MROs, and government aircraft customized performance-
Slide 13: Strategic Objectives for FY26
Strategic Objectives for FY26 Market share gains and • Win market share via new business wins in new parts Distribution new business wins • Complete Oklahoma City hangar expansion; progress on Miami hangar • Drive Component Services volume through cross selling • New business wins in Integrated Solu
Slide 14: Financial Overview
Financial Overview AAR
Slide 15: First Quarter FY26 Highlights
First Quarter FY26 Highlights Objectives Q1 Updates First Quarter FY26 Performance Highlights Adj. Sales1 by Segment ($M) Adj. EBITDA ($M) Market share gains • Secured multi-year exclusive defense agreement with Adj. Organic Sales Growth Up and new business AmSafe Bridport to distribute their produc
Slide 16: FY25 Financial Results
FY25 Financial Results Adj. Sales ($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 $242 11.8% 10.4% FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 Note: See Appendix for reconciliation of Non-GAAP financial measures. AAR deliver
Slide 17: Successfully Delivering Accelerating Growth and Margin Expansion
Successfully Delivering Accelerating Growth and Margin Expansion Adj. Sales ($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 18: 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 19: 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 20: 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 $156 10
Slide 21: Appendix
Appendix AAR
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures FY25 and FY24 Adjusted Sales, EBITDA, and EBITDA Margin FY25 FY24 Parts Integ Exped Parts Integ Exped ($ 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 23: 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 $1,448.0 1 Restated to reflect the reclassification of our Contractor-Owned, Contractor
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA: FY15 and FY22 Through FY25 ($ 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 25: 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 $950.0 Adjusted EBITDA for the twelve months
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Sales, Operating Income, Operating Margin, EBITDA, and EBITDA Margin Q1 FY26 Q1 FY25 Parts Repair & Integrated Expeditionary Corporate Parts Repair & Integrated Expeditionary Corporate ($ in millions) Supply Engineering Solutions Services & Other Consolidated Sup
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Earnings per Share Q1 FY26 Q1 FY25 Diluted earnings per share $0.95 $0.50 Acquisition, integration, and amortization expenses 0.18 0.25 Severance charges 0.03 - Gain related to sale of business/joint venture (0.02) (0.03) Government COVID-related subsidy liabilit
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Organic Sales Growth: Q1 FY26 Q1 FY26 ($ 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