AAR CORP. Posts Strong Fiscal 2026 Results with 19% Revenue Growth — AAR CORP.

Event summary

AAR CORP. reported a 23% increase in Q4 sales to $928 million, with full-year revenue up 19% to $3.3 billion.
Adjusted EBITDA grew by 27% in Q4 and 24% for the full year, with margins expanding from 12.4% to 12.5%.
The company announced a new reporting structure with four operating segments and plans to wind down its Legacy Commercial Programs business.
AAR completed several strategic acquisitions, including Aircraft Reconfig Technologies, and secured a $305 million contract for U.S. Navy and Marine Corps C-40A fleet support.

The big picture

AAR CORP.'s strong fiscal 2026 results reflect a strategic shift toward higher-growth, higher-margin aviation aftermarket services. The company's focus on acquisitions and operational efficiency aligns with broader industry trends of consolidation and digital transformation in aerospace maintenance and repair. With a disciplined growth strategy and improved cash flow management, AAR is positioning itself for long-term value creation amid increasing demand for aviation parts and services.

What we're watching

Integration Success: Whether AAR can sustain its margin expansion as it integrates recent acquisitions like HAECO Americas and Aircraft Reconfig Technologies.
Segment Performance: How the newly realigned segments—Parts Supply, Repair, Engineering, and Software, Government Solutions—will perform independently.
Commercial Focus: The pace at which AAR can transition away from Legacy Commercial Programs to higher-margin offerings in its core segments.