Aar Corp. · NYSE:AIR
Aar — Q2 2026 Earnings Presentation
20 slides from Aar's earnings presentation, Jan 6, 2026
Slide 1: Second Quarter Fiscal Year 2026 Earnings Call
Second Quarter Fiscal Year 2026 Earnings Call January 6, 2026 © 2026 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: Q2 Highlights
Q2 Highlights Sales growth in all Strengthened our Renewed exclusive Reduced leverage segments portfolio through new parts and maintained two acquisitions Distribution strategic flexibility Delivered above- • ADI accelerates new agreements with through proactive market growth in parts Distribution C
Slide 4: Executing on Our Strategic Objectives
Executing on Our Strategic Objectives Optimized Portfolio Driving Growth and Profitability Objectives Q2 Updates Q2 Results New business wins • Renewed key exclusive new parts Distribution contracts with Collins • Aerospace and Arkwin Industries Eaton named our Amsterdam component repair facility an
Slide 5: Accelerating Growth Opportunities in New Parts Distribution
Accelerating Growth Opportunities in New Parts Distribution ADI Acquisition $149M $15M ~400 Sales1 EBITDA1 Employees Leading distributor of electronic components 6 $138M and assemblies Locations Transaction value Distributes to a broad set of commercial and government US, UK, and India customers acr
Slide 6: Extending Our Heavy Maintenance Leadership Position
Extending Our Heavy Maintenance Leadership Position HAECO Americas Acquisition S T R AT E G I C R AT I O N A L E • Accelerates growth and strengthens relationships with major airline customers • Expands capacity to meet rising demand and optimize AAR’s airframe heavy maintenance footprint 2nd larges
Slide 7: Enhancing Our Repair & Engineering Capabilities
Enhancing Our Repair & Engineering Capabilities Agreement to Acquire Aircraft Reconfig Technologies ~100+ $35M Employees Transaction value Specializes in passenger aircraft reconfiguration for leading global airlines Transaction expected to close in Q4 FY261 Solutions include project management, eng
Slide 8: Second Quarter FY26 Performance Highlights
Second Quarter FY26 Performance Highlights Sales by Segment (M) Adj. EBITDA (M) Adj. Operating Adj. EPS UP Income (M) UP 23% 16% $96.5 UP $795.3 UP 31% 28% $21.4 $1.18 $686.1 $81.2 $78.4 $20.2 $175.8 $163.4 $63.4 $0.90 $244.5 $228.8 $273.7 $353.6 11.4% 12.1% 9.2% 10.2% Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY2
Slide 9: Parts Supply
Parts Supply Q2 Sales and Profitability Sales (M) Adj. EBITDA (M) Adj. Operating UP Income (M) 29% $353.6 UP UP 37% 35% $273.7 $42.8 $46.5 $31.6 Parts Supply $33.9 • Above-market new parts Distribution sales for commercial and defense • ADI performed above expectations 12.4% 13.2% 11.5% 12.1% • Expa
Slide 10: Repair & Engineering
Repair & Engineering Q2 Sales and Profitability Sales (M) Adj. EBITDA (M) Adj. Operating UP Income (M) 1% UP $31.2 7% $30.9 $244.5 $228.8 $27.4 $27.4 Repair & Engineering • Capacity additions on track and volume secured • HAECO Americas integration and synergy realization actions kicked off in Q2 an
Slide 11: Integrated Solutions
Integrated Solutions Q2 Sales and Profitability Sales (M) Adj. EBITDA (M) Adj. Operating UP Income (M) 50% UP $18.5 UP 8% 82% $175.8 $15.1 $163.4 $12.3 Integrated Solutions $8.3 • Government Programs delivered strong revenue growth • Favorable mix and key program milestones achieved in the quarter,
Slide 12: Balance Sheet Highlights Net Leverage
Balance Sheet Highlights Net Leverage LOWER BY 1.09x Net leverage of 2.49x 3.58 3.30 3.31 3.17 3.06 Pro forma net leverage decreased 2.72 2.82 2.49 2.5 1.09x since Product Support 2.0 acquisition Target net leverage in FY26 Target net leverage of March 1, Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 F
Slide 13: Executing Our Disciplined Capital Allocation Strategy
Executing Our Disciplined Capital Allocation Strategy Balanced Capital Allocation Priorities Acquisition Criteria Organic Investment to M&A Strategic Financial Drive Growth • Disciplined adherence to • Support new business wins in strategic and financial • Expands new parts Distribution • Growth and
Slide 14: FY 2026 Dynamics
FY 2026 Dynamics Q3 FY 2026 Guidance AAR Framework for FY 2026 Total sales Growing above-market in both commercial growth 20% - 22% Distribution and government Organic sales Parts Supply growth1 8% - 11% Material supply constraints will persist USM through FY26 Adjusted operating margin 9.8% - 10.1%
Slide 15: Appendix
Appendix © 2026 AAR CORP. All rights reserved worldwide. 15
Slide 16: 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 EBITDA, adjusted operating income, adjusted EBITDA margin, adjusted operating margin, and net leverage which are “non-GAAP financial measures” as def
Slide 17: Non-GAAP financial measures
Non-GAAP financial measures Adjusted diluted earnings per share Q2 FY26 Q2 FY25 Diluted earnings (loss) per share $0.90 ($0.87) Acquisition, integration, and amortization expenses 0.37 0.20 Loss related to sale of business/joint venture - 0.01 FCPA settlement and investigation costs - 1.67 Tax effec
Slide 18: Non-GAAP financial measures
Non-GAAP financial measures Adjusted operating income, operating margin, EBITDA, and EBITDA margin Q2 FY26 Q2 FY25 Parts Repair & Integrated Expeditionary Corporate Parts Repair & Integrated Expeditionary Corporate ($ in millions) Supply Engineering Solutions Services & Other Consolidated Supply Eng
Slide 19: Non-GAAP financial measures
Non-GAAP financial measures Trailing twelve months Adjusted EBITDA FY23 FY24 FY25 FY26 Twelve months ended ($ in millions) Q4 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q1 FY26 Q2 FY26 Net income (loss) $23.2 ($0.6) $23.8 $14.0 $9.1 $46.3 $18.0 ($30.6) ($8.9) $
Slide 20: Net Leverage
Net Leverage ($ in millions) Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Total debt $277.0 $997.0 $992.0 $997.0 $1,032.0 $977.0 $1,030.0 $960.0 Less: cash and cash equivalents (69.2) (85.8) (49.3) (61.7) (84.4) (96.5) (80.0) (75.6) Net debt $207.8 $911.2 $942.7 $935.3 $947.6 $880