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Aug 31
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.
AAR Corp
AAR Corp
AAR Corp Revenue by Segment
AAR Corp Revenue by Geographic Location
Revenue by Segment
Parts Supply Revenue
CapyFin.comRepair & Engineering Revenue
CapyFin.comIntegrated Solutions Revenue
CapyFin.comExpeditionary Services Revenue
CapyFin.comRevenue by Geographic Location
Government Revenue
CapyFin.com 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.
- Market and macroeconomic uncertainties in aviation sector.
Revenue & Expenses
Visualization of income flow from segment revenue to net income