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Aug 31, 2025
AAR Corp Q1 2026 Earnings Report
AAR Corp delivered strong Q1 2026 results with double-digit sales growth and higher profitability.
Key Takeaways
AAR reported Q1 2026 revenue of $739.6M and net income of $34.4M, with EPS of $0.95 and adjusted EPS of $1.08. Sales rose 12% year-over-year, led by strong Parts Supply performance and growth across all segments.
Revenue grew 12% to $739.6M.
Net income more than doubled to $34.4M.
Adjusted EBITDA rose 18% to $86.7M with margins expanding to 11.7%.
Parts Supply segment led with 27% growth.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
AAR expects continued sales growth across all segments, driven by strong demand for Parts Supply and multi-year backlogs in Repair & Engineering.
Positive Outlook
- Strong demand for Parts Supply continues.
- Multi-year backlog in Repair & Engineering with new capacity sold out.
- Growth opportunities in government activities.
- Expanded software offerings through Trax acquisition.
- Margin improvement and cash flow generation expected from portfolio upgrades.
Challenges Ahead
- Cash used in operating activities increased to $44.9M.
- Higher debt levels with net debt of $950M.
- Exposure to government contract risks and potential terminations.
- Ongoing integration expenses from acquisitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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