AAR announces segment realignment and wind-down of Commercial Programs business

About this update from Aar Corp.

WOOD DALE, Ill. , May 6, 2026 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced today that beginning with the fourth quarter of fiscal year 2026, the Company will report under a new structure using the following four operating segments: AAR also announced today that it intends to wind down its Legacy Commercial Programs business. For the last twelve months ended February 28, 2026, the Legacy Commercial Programs business contributed sales of $252.4 million, a GAAP operating loss of ($0.2) million, and adjusted operating income of $5.0 million. Net assets of the Legacy Commercial Programs segment as of February 28, 2026 were approximately $160 million. "Our segment realignment reflects AAR's continued focus on growth, margin expansion, and additional cash flow generation," said John M. Holmes, AAR's Chairman, President and CEO. "Legacy Commercial Programs requires significant asset pools and no longer meets our capital return thresholds. We anticipate that the wind-down of this segment will take approximately three to four years. During that timeframe, we expect the results will include periodic gains as we divest the assets that support these programs. We also plan to redeploy the talented team supporting these activities to other AAR growth initiatives.  Once complete, we believe the wind-down of Legacy Commercial Programs will result in a more simplified business model with higher margins and improved returns on capital." The Company's guidance for the fourth quarter and fiscal year 2026, ending May 31, 2026, is unchanged and not affected by the segment realignment or plans to wind down its Legacy Commercial Programs business. Concurrently with this press release, the Company has furnished a Current Report on Form 8-K with a recast of comparable prior year segment financial information for fiscal years 2024 and 2025 and for certain previously reported quarters in fiscal years 2025 and 2026, along with a summary presentation that is posted on the Investors section of AAR's corporate website. The Company's consolidated balance sheets, income statements, and cash flows are not affected. About AAR AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through four operating segments: Parts Supply; Repair, Engineering, and Software; Government Solutions; and Legacy Commercial Programs. Additional information can be found at aarcorp.com . Contact: Chris Tillett – Investor Relations +1-630-227-5830 [email protected] View original content to download multimedia: https://www.prnewswire.com/news-releases/aar-announces-segment-realignment-and-wind-down-of-commercial-programs-business-302764562.html

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