AAR Corp. reported second-quarter fiscal 2026 sales of $795.3 million, up 16% year-over-year, driven by organic growth of 12%. Adjusted diluted EPS rose 31% to $1.18, compared with $0.90 in the prior-year quarter, reflecting strong operational leverage. Adjusted EBITDA increased 23% to $97 million, and adjusted EBITDA margin expanded to 12.1% from 11.4%. Parts Supply led performance with sales up 29%, including 32% organic growth in new parts Distribution, while Repair & Engineering volumes also increased. Government customer sales climbed 23%, and commercial customer sales represented 71% of total revenues.

During the quarter, AAR closed two strategic acquisitions: ADI for $138 million to bolster new parts Distribution with additional OEM relationships, and HAECO Americas for $77 million to expand airframe heavy maintenance capacity. In conjunction with the HAECO Americas deal, AAR secured approximately $850 million in multi-year contracts, effectively selling out the acquired capacity. These acquisitions are expected to accelerate margin improvement through synergies and expanded service offerings, while AAR’s balance sheet remains strong with net leverage at 2.49x, providing flexibility for further inorganic investments.

AAR reaffirmed its fiscal 2026 guidance, forecasting third-quarter total sales growth of 20%–22% with organic growth of 8%–11%, and an adjusted operating margin between 9.8% and 10.1%. For the full year, the company expects total sales growth approaching 17% and organic growth of approximately 11%. Management highlighted ongoing margin expansion opportunities from efficiency gains, integration synergies, and a favorable sales mix shift toward higher-margin offerings such as new parts Distribution and its Trax software platform.