AAR Corp Reports Strong Q2 Fiscal 2026 Results and Discusses Earnings Call Highlights

AAR Corp (NYSE: AIR) announced robust financial results for its second quarter of fiscal 2026, ending November 30, 2025, marking significant year‑over‑year improvements across revenue, profitability, and operational performance. The company reported consolidated sales of **$795.3 million**, a **16 % increase** from the same quarter last year, driven by strong demand in parts supply, distribution, and government contracts. GAAP net income was **$34.6 million**, or **$0.90 per diluted share**, compared to a net loss in the prior period, while adjusted diluted EPS climbed **31 % to $1.18**. Adjusted EBITDA rose **23 % to $97 million**, and adjusted EBITDA margin increased to **12.1 %**. Operating margins also expanded significantly over the prior year. Management highlighted that organic growth of 12 % was driven by continued strength in Parts Supply—especially new parts distribution, which saw 32 % organic sales growth—and improved performance in the Repair & Engineering segment. Sales to government customers jumped 23 %, reflecting increased order volumes. The company also emphasized efficiency gains and margin expansion resulting from operational improvements. During the earnings call, Chairman and CEO John Holmes and Interim CFO Sarah Flanagan reiterated confidence in AAR’s strategic direction, noting that recent acquisitions—including ADI in Parts Supply and HAECO Americas in Repair & Engineering—are expected to enhance long‑term growth and service offerings. The HAECO Americas acquisition, in particular, came with approximately $850 million in multi‑year airframe heavy maintenance contracts. Management underscored AAR’s strong balance sheet, with net leverage at 2.49x, supporting both organic and inorganic investments. In addition, AAR’s subsidiary Airinmar secured a multi‑year agreement with Malaysia Airlines, and Trax expanded its software integration partnerships. Subsequent to quarter‑end, Trax was selected by Thai Airways to provide its eMRO enterprise platform, highlighting international demand for AAR’s digital solutions. #AARCorp #Q22026Earnings #AerospaceIndustry #FinancialResults #SlimScan #GrowthStocks #CANSLIM