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Nov 30, 2025
AAR Corp Q2 2026 Earnings Report
AAR Corp reported strong financial results for the second quarter of fiscal year 2026, with significant increases in sales, adjusted diluted EPS, and adjusted EBITDA, driven by strategic acquisitions and organic growth across its business segments.
Key Takeaways
AAR Corp delivered an outstanding second quarter in fiscal year 2026, with total sales increasing by 16% to $795.3 million. Adjusted diluted EPS rose by 31% to $1.18, and adjusted EBITDA grew by 23% to $97 million, with the adjusted EBITDA margin expanding to 12.1%. This growth was attributed to strong organic performance, particularly in Parts Supply, and the strategic acquisitions of ADI and HAECO Americas.
Total sales increased by 16% to $795.3 million, with organic growth contributing 12%, primarily driven by the Parts Supply business.
Adjusted diluted EPS grew by 31% to $1.18, reflecting strong operational performance and margin expansion.
Adjusted EBITDA increased by 23% to $97 million, with the adjusted EBITDA margin improving to 12.1% from 11.4% in the prior year.
Strategic acquisitions of ADI and HAECO Americas were completed, enhancing new parts distribution capabilities and strengthening the airframe heavy maintenance position in North America.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
AAR Corp provided guidance for the third quarter and full fiscal year 2026, anticipating continued growth in sales and adjusted operating margin, driven by organic growth and recent acquisitions.
Positive Outlook
- Third quarter FY 2026 total sales growth is projected to be between 20% and 22%.
- Third quarter FY 2026 organic sales growth is expected to be between 8% and 11%.
- Third quarter FY 2026 adjusted operating margin is forecasted to be between 9.8% and 10.1%.
- Full year FY 2026 total sales growth is approaching 17%.
- Full year FY 2026 organic sales growth is approaching 11%.
Challenges Ahead
- The company did not provide specific negative guidance points for the upcoming periods.
- Forecasting the timing and amount of unusual gains and losses remains difficult.
- The ultimate outcome of pending litigation is uncertain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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