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AIR · Current Report (Form 8-K) · Filed May 6, 2026

Aar Corp — 8-K exhibit

tm2612934d1_ex99-1.htm
Aar Corp on Boardroom Alpha

 

Exhibit 99.1

 

AAR CORP.

Unaudited Summary GAAP Financial Information

 

Dollars in millions    

 

   Three months ended 
   August 31,
2024		   November 30,
2024		   February 28,
2025		   May 31,
2025		 
Third-Party Sales:                    
Parts Supply  $249.7   $273.7   $270.7   $305.5 
Repair, Engineering, and Software   229.3    240.3    228.7    232.7 
Government Solutions   121.4    110.9    121.6    141.5 
Legacy Commercial Programs   61.3    61.2    57.2    74.8 
   $661.7   $686.1   $678.2   $754.5 

 

   Three months ended         
   August 31,
2025		   November 30,
2025		   February 28,
2026		         
Third-Party Sales:                       
Parts Supply  $317.8   $353.6   $392.5         
Repair, Engineering, and Software   226.4    257.7    282.3         
Government Solutions   133.9    123.5    114.7         
Legacy Commercial Programs   61.5    60.5    55.6         
   $739.6   $795.3   $845.1         
                        
   Year ended                 
   May 31, 2024   May 31, 2025              
Third-Party Sales:                       
Parts Supply  $967.0   $1,099.6              
Repair, Engineering, and Software   681.3    931.0              
Government Solutions   451.7    495.4              
Legacy Commercial Programs   218.9    254.5              
   $2,318.9   $2,780.5              

 

 

 

 

   Three months ended 
   August 31,
2024		   November 30,
2024		   February 28,
2025		   May 31,
2025		 
Operating income:                    
Parts Supply  $30.1   $31.6   $45.4   $49.7 
Repair, Engineering, and Software   20.3    22.8    19.7    21.2 
Government Solutions   3.6    6.7    13.2    11.6 
Legacy Commercial Programs   3.2    2.0    2.1    1.3 
    57.2    63.1    80.4    83.8 
Unallocated Corporate expenses   (13.8)   (65.4)   (9.3)   (10.8)
   $43.4   $(2.3)  $71.1   $73.0 
                     
   Three months ended      
   August 31,
2025		   November 30,
2025		   February 28,
2026		      
Operating income:                    
Parts Supply  $40.9   $40.9   $50.7      
Repair, Engineering, and Software   20.0    23.3    19.6      
Government Solutions   12.7    12.4    12.9      
Legacy Commercial Programs   0.4    3.3    (5.2)     
    74.0    79.9    78.0      
Unallocated Corporate expenses   (9.1)   (12.9)   (12.2)     
   $64.9   $67.0   $65.8      
                     
   Year ended           
   May 31,
2024		   May 31,
2025		           
Operating income:                    
Parts Supply  $109.8   $156.8           
Repair, Engineering, and Software   47.9    84.0           
Government Solutions   24.8    35.1           
Legacy Commercial Programs   7.2    8.6           
    189.7    284.5           
Unallocated Corporate expenses   (60.5)   (99.3)          
   $129.2   $185.2           

 

 

 

 

Third-party sales across the major customer markets for each of our operating segments:  

 

   Three months ended 
   August 31, 2024   November 30, 2024   February 28, 2025   May 31, 2025 
Parts Supply                    
Commercial  $210.4   $220.8   $220.9   $227.1 
Government and defense   39.3    52.9    49.8    78.4 
   $249.7   $273.7   $270.7   $305.5 
Repair, Engineering, and Software                    
Commercial  $199.9   $217.5   $205.8   $215.2 
Government and defense   29.4    22.8    22.9    17.5 
   $229.3   $240.3   $228.7   $232.7 
Government Solutions                    
Commercial  $1.3   $0.7   $1.6   $0.4 
Government and defense   120.1    110.2    120.0    141.1 
   $121.4   $110.9   $121.6   $141.5 
Legacy Commercial Programs                    
Commercial  $61.3   $61.2   $57.2   $74.8 
Government and defense   -    -    -    - 
   $61.3   $61.2   $57.2   $74.8 
                     
    Three months ended      
   August 31, 2025   November 30, 2025   February 28, 2026      
Parts Supply                    
Commercial  $254.5   $268.1   $300.0      
Government and defense   63.3    85.5    92.5      
   $317.8   $353.6   $392.5      
Repair, Engineering, and Software                    
Commercial  $206.6   $236.6   $258.9      
Government and defense   19.8    21.1    23.4      
   $226.4   $257.7   $282.3      
Government Solutions                    
Commercial  $0.7   $1.2   $1.3      
Government and defense   133.2    122.3    113.4      
   $133.9   $123.5   $114.7      
Legacy Commercial Programs                    
Commercial  $61.5   $60.5   $55.6      
Government and defense   -    -    -      
   $61.5   $60.5   $55.6      
                     
    Year ended           
   May 31, 2024   May 31, 2025           
Parts Supply                    
Commercial  $800.6    879.2           
Government and defense   166.4    220.4           
   $967.0   $1,099.6           
Repair, Engineering, and Software                    
Commercial  $612.3    838.4           
Government and defense   69.0    92.6           
   $681.3   $931.0           
Government Solutions                    
Commercial  $6.1    4.0           
Government and defense   445.6    491.4           
   $451.7   $495.4           
Legacy Commercial Programs                    
Commercial  $218.9    254.5           
Government and defense   -    -           
   $218.9   $254.5           

 

 

 

 

Unaudited Summary Non-GAAP Financial Information  

 

   Parts Supply 
   Three months ended   Year ended   Three months ended 
   August 31,
2024		   November 30,
2024		   February 28,
2025		   May 31,
2025		   May 31,
2025		   August 31,
2025		   November 30,
2025		   February 28,
2026		 
Sales  $249.7   $273.7   $270.7   $305.5    1,099.6   $317.8   $353.6   $392.5 
Operating income   30.1    31.6    45.4    49.7    156.8    40.9    40.9    50.7 
Operating income margin   12.1%   11.5%   16.8%   16.3%   14.3%   12.9%   11.6%   12.9%
                                         
Operating income  $30.1   $31.6   $45.4   $49.7   $156.8   $40.9   $40.9   $50.7 
Acquisition, integration & amortization expenses   -    -    -    -    -    -    1.9    2.9 
Russian bankruptcy court judgment (reversal)   -    -    (11.1)   -    (11.1)   -    -    - 
Adjusted operating income  $30.1   $31.6   $34.3   $49.7   $145.7   $40.9   $42.8   $53.6 
Adjusted operating margin   12.1%   11.5%   12.7%   16.3%   13.3%   12.9%   12.1%   13.7%
                                         
Operating income  $30.1   $31.6   $45.4   $49.7   $156.8   $40.9   $40.9   $50.7 
Depreciation and amortization   2.1    1.8    1.9    1.9    7.7    2.2    4.9    7.0 
Stock-based compensation   0.5    0.5    0.6    0.5    2.1    0.7    0.7    0.7 
Acquisition and integration expenses   -    -    -    -    -    -    -    0.1 
Russian bankruptcy court judgment (reversal)   -    -    (11.1)   -    (11.1)   -    -    - 
Adjusted EBITDA  $32.7   $33.9   $36.8   $52.1   $155.5   $43.8   $46.5   $58.5 
Adjusted EBITDA margin   13.1%   12.4%   13.6%   17.1%   14.1%   13.8%   13.2%   14.9%
                                         
   Repair, Engineering, and Software  
   Three months ended   Year ended   Three months ended 
   August 31,
2024		   November 30,
2024		   February 28,
2025		   May 31,
2025		   May 31,
2025		   August 31,
2025		   November 30,
2025		   February 28,
2026		 
Sales  $229.3   $240.3   $228.7   $232.7    931.0   $226.4   $257.7   $282.3 
Operating income   20.3    22.8    19.7    21.2    84.0    20.0    23.3    19.6 
Operating income margin   8.9%   9.5%   8.6%   9.1%   9.0%   8.8%   9.0%   6.9%
                                         
Operating income  $20.3   $22.8   $19.7   $21.2   $84.0   $20.0   $23.3   $19.6 
Acquisition, integration & amortization expenses   7.4    7.1    7.7    3.1    25.3    5.1    5.9    11.7 
Severance charges   -    -    -    -    -    0.4    -    - 
Gain related to sale of joint venture   (1.4)   (0.7)   -    -    (2.1)   -    -    - 
Adjusted operating income  $26.3   $29.2   $27.4   $24.3   $107.2   $25.5   $29.2   $31.3 
Adjusted operating margin   11.5%   12.2%   12.0%   10.4%   11.5%   11.3%   11.3%   11.1%
                                         
Operating income  $20.3   $22.8   $19.7   $21.2   $84.0   $20.0   $23.3   $19.6 
Depreciation and amortization   7.6    7.7    8.0    7.5    30.8    7.5    8.0    9.0 
Stock-based compensation   0.4    0.3    0.7    0.3    1.7    0.6    0.4    0.4 
Acquisition and integration expenses   3.4    3.2    3.7    (1.0)   9.3    1.1    1.8    6.4 
Severance charges   -    -    -    -    -    0.4    -    - 
Gain related to sale of joint venture   (1.4)   (0.7)   -    -    (2.1)   -    -    - 
Adjusted EBITDA  $30.3   $33.3   $32.1   $28.0   $123.7   $29.6   $33.5   $35.4 
Adjusted EBITDA margin   13.2%   13.9%   14.0%   12.0%   13.3%   13.1%   13.0%   12.5%

 

 

 

 

   Government Solutions 
   Three months ended   Year ended   Three months ended 
   August 31,
2024		   November 30,
2024		   February 28,
2025		   May 31,
2025		   May 31,
2025		   August 31,
2025		   November 30,
2025		   February 28,
2026		 
Sales  $121.4   $110.9   $121.6   $141.5    495.4   $133.9   $123.5   $114.7 
Operating income   3.6    6.7    13.2    11.6    35.1    12.7    12.4    12.9 
Operating income margin   3.0%   6.0%   10.9%   8.2%   7.1%   9.5%   10.0%   11.2%
                                         
Sales  $121.4   $110.9   $121.6   $141.5   $495.4   $133.9   $123.5   $114.7 
Contract termination benefit   (9.5)   -    (4.0)   -    (13.5)   -    -    - 
Adjusted sales  $111.9   $110.9   $117.6   $141.5   $481.9   $133.9   $123.5   $114.7 
                                         
Operating income  $3.6   $6.7   $13.2   $11.6   $35.1   $12.7   $12.4   $12.9 
Contract termination costs (benefit)   3.2    -    (3.0)   -    0.2    -    -    - 
Adjusted operating income  $6.8   $6.7   $10.2   $11.6   $35.3   $12.7   $12.4   $12.9 
Adjusted operating margin   6.1%   6.0%   8.7%   8.2%   7.3%   9.5%   10.0%   11.2%
                                         
Operating income  $3.6   $6.7   $13.2   $11.6   $35.1   $12.7   $12.4   $12.9 
Depreciation and amortization   1.1    1.6    1.2    1.3    5.2    1.3    1.3    1.5 
Stock-based compensation   0.2    0.4    0.3    0.3    1.2    0.3    0.3    0.3 
Contract termination costs (benefit)   3.2    -    (3.0)   -    0.2    -    -    - 
Adjusted EBITDA  $8.1   $8.7   $11.7   $13.2   $41.7   $14.3   $14.0   $14.7 
Adjusted EBITDA margin   7.2%   7.8%   9.9%   9.3%   8.7%   10.7%   11.3%   12.8%
                                         
   Legacy Commercial Programs 
   Three months ended   Year ended   Three months ended 
   August 31,
2024		   November 30,
2024		   February 28,
2025		   May 31,
2025		   May 31,
2025		   August 31,
2025		   November 30,
2025		   February 28,
2026		 
Sales  $61.3   $61.2   $57.2   $74.8    254.5   $61.5   $60.5   $55.6 
Operating income (loss)   3.2    2.0    2.1    1.3    8.6    0.4    3.3    (5.2)
Operating income margin   5.2%   3.3%   3.7%   1.7%   3.4%   0.7%   5.5%   -9.4%
                                         
Sales  $61.3   $61.2   $57.2   $74.8   $254.5   $61.5   $60.5   $55.6 
Contract termination benefit   -    -    -    (18.7)   (18.7)   -    -    - 
Adjusted sales  $61.3   $61.2   $57.2   $56.1   $235.8   $61.5   $60.5   $55.6 
                                         
Operating income (loss)  $3.2   $2.0   $2.1   $1.3   $8.6   $0.4   $3.3   $(5.2)
Severance charges   -    -    -    -    -    0.3    -    - 
Impairment charge related to product line exit   -    -    -    -    -    -    -    4.9 
Adjusted operating income  $3.2   $2.0   $2.1   $1.3   $8.6   $0.7   $3.3   $(0.3)
Adjusted operating margin   5.2%   3.3%   3.7%   2.3%   3.6%   1.1%   5.5%   -0.5%
                                         
Operating income (loss)  $3.2   $2.0   $2.1   $1.3   $8.6   $0.4   $3.3   $(5.2)
Depreciation and amortization   1.6    1.8    1.9    1.9    7.2    1.7    1.8    1.7 
Stock-based compensation   0.1    -    0.1    0.1    0.3    0.1    -    0.1 
Severance charges   -    -    -    -    -    0.3    -    - 
Impairment charge related to product line exit   -    -    -    -    -    -    -    4.9 
Adjusted EBITDA  $4.9   $3.8   $4.1   $3.3   $16.1   $2.5   $5.1   $1.5 
Adjusted EBITDA margin   8.0%   6.2%   7.2%   5.9%   6.8%   4.1%   8.4%   2.7%

 

 

 

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