AAR Corp. Reports 24% Sales Increase in Q1, Plans MRO Holdings Acquisition

AAR Corp. announced on September 28, 2026, its financial results for the first quarter of fiscal year 2027, ending August 31, 2026. The aviation aftermarket parts, repair, and software company reported sales of $918 million, a 24% increase from the previous year's first quarter. Adjusted EBITDA grew 34% to $117 million.

In a separate announcement, AAR stated it has entered into an agreement to acquire a 65% controlling interest in MRO Holdings. This acquisition is intended to further integrate AAR's parts supply, repair, and software services within the aviation aftermarket, according to company statements. CEO John M. Holmes indicated the move aims to accelerate AAR's strategy and achieve significant scale.

The company reported a GAAP diluted earnings per share of $1.00 and an adjusted diluted EPS of $1.49. Net income for the quarter was $40 million. Cash flow from operations was $55.8 million, and net leverage was reduced to 1.81x.

Sales growth was observed across all three of AAR's core segments. The Parts Supply segment saw a 31% increase, while the Repair, Engineering & Software segment also grew 31%. The Government Solutions segment reported a 4% increase in sales.

AAR expressed confidence in its outlook for fiscal year 2027, citing strong first-quarter performance and sustained demand for its aftermarket solutions.