AAR Corp. reported second-quarter fiscal 2026 sales of $795 million, marking a 16% increase over the prior-year period. Organic growth contributed 12% of this gain, driven primarily by a 29% surge in Parts Supply revenue. New parts Distribution led the segment with 32% organic sales growth, reflecting strong market share gains under AAR’s exclusive Distribution model. Commercial customer sales rose 13%, while government sales climbed 23%, demonstrating balanced strength across end markets.

The company delivered GAAP diluted earnings per share of $0.90 and adjusted diluted EPS of $1.18, up 31% year-over-year. Adjusted EBITDA increased 23% to $97 million, boosting the adjusted EBITDA margin to 12.1% from 11.4%. Adjusted operating margin expanded to 10.2% from 9.2%, driven by higher volumes in new parts Distribution and efficiency gains in Repair & Engineering. SG&A expenses declined sharply to $88.7 million, excluding prior-year settlement costs, further supporting margin improvement.

During the quarter AAR closed two key acquisitions: ADI, a $138 million purchase that expands the company’s new parts Distribution network and OEM relationships, and HAECO Americas for $77 million, which enhances AAR’s North American 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 and laying the groundwork for operational synergies and margin uplift.

As of November 30, 2025, AAR’s net debt stood at $884.4 million with net leverage of 2.49x, providing ample capacity for both organic reinvestment and further M&A. The company generated $13.6 million in operating cash flow during the quarter and raised guidance for fiscal year sales growth to approach 17%, with adjusted operating margins expected near 10%. Management highlighted continued momentum in its Trax software platform, now adopted by over 100 airlines globally, as a driver of future aftermarket parts and repair services growth.