AAR Corp. Earnings Summary — Q1 FY2026

• Revenue increased 24.6% YoY to $845.1 million, driven largely by a 29.5% surge in product sales.
• The company recorded a substantial $35.7 million bargain purchase gain during the quarter.
• Despite higher revenue, operating income fell 7.5% YoY to $65.8 million, indicating pressure on organic margins.
• Inventory levels increased significantly to $958.2 million compared to $809.2 million at fiscal year-end 2025.
• Net income of $68.0 million represents a sharp recovery from the $8.9 million loss in the prior year's same quarter.
• The company recognized a $9.8 million gain from the sale of its headquarters building.
• SG&A expenses grew 46.5% YoY to $89.8 million, reflecting acquisition-related costs and expanded operations.

Management is focused on simplifying the corporate structure and integrating recent acquisitions to deliver sustainable margins in a higher interest rate environment.

Improving

The swing from a net loss to a significant profit, bolstered by strategic gains and top-line growth, marks a reversal from the contraction seen in the 2024-2025 period.

AAR Corp is navigating an asset-heavy expansion phase with a focus on 'flight-to-quality' in the aviation aftermarket, aiming to translate increased scale into long-term accretive bottom-line performance.