Recent Updates — AIR

AAR CORP. entered into a Share Purchase Agreement to acquire a 65% controlling interest in MRO Holdings for an implied enterprise value of $4.0 billion. The consideration includes approximately $1.82 billion in cash and 5,783,894 shares of Series A Convertible Preferred Stock valued at $780.8 million. Concurrently, the Company closed a PIPE offering of 2,215,791 common shares at $104.50 per share for approximately $231.6 million in gross proceeds to fund part of the transaction. The acquisition is expected to close in fiscal Q3 ending February 2027, subject to regulatory approvals and customary conditions. AAR operates as a global aerospace and defense aftermarket solutions company providing parts supply, repair engineering, software, and government solutions.

AAR CORP reported first quarter fiscal year 2027 results for the period ended August 31, 2026, alongside announcing a definitive agreement to acquire a controlling interest in MRO Holdings. Consolidated sales increased 24% to $918 million, driven by strong demand across Parts Supply and Repair, Engineering & Software segments. GAAP diluted EPS was $1.00, while adjusted diluted EPS rose 38% to $1.49. Adjusted EBITDA grew 34% to $117 million with an expanded margin of 12.7%. Net income reached $40.1 million, and net leverage decreased to 1.81x. The company provided second quarter sales growth guidance of 14%-16% and full-year low-teens growth, excluding Legacy Commercial Programs impacts. AAR is a global aerospace and defense aftermarket solutions company providing parts supply, repair, engineering, software, and government solutions.

AAR CORP. approved a special long-term performance incentive grant of 161,500 shares of performance-based restricted stock to Chairman, CEO, and President John M. Holmes, with a targeted grant date fair value of approximately $15 million. The award is tied to stock price hurdles of $175, $200, and $250 per share, with a five-year vesting period ending July 31, 2031. AAR CORP. is an aviation aftermarket platform provider.

AAR CORP. reported financial results for the fourth quarter and fiscal year 2026 ended May 31, 2026. For Q4, sales rose 23% to $928 million, with GAAP diluted EPS of $1.27 and adjusted diluted EPS of $1.53. Full year 2026 sales increased 19% to $3.3 billion, with GAAP diluted EPS of $4.86 and adjusted diluted EPS of $5.05. The company announced a segment realignment and the wind-down of its Legacy Commercial Programs business. Net leverage decreased to 2.03x as of May 31, 2026. Guidance for Q1 FY2027 projects sales growth (excluding Legacy Commercial Programs) of 21% to 23% and an adjusted EBITDA margin of 12.25% to 12.75%. The company operates in the aerospace and defense industry, providing aviation aftermarket services including parts supply, repair, engineering, and software.