Business UpdateJul 22, 2026, 06:01 AM
AAR CORP Restructures Segments, Exits Business, Achieves Record Results
AI Summary
AAR CORP reported record-breaking financial results for fiscal 2026, driven by strategic initiatives including a significant restructuring of its operating segments and the completion of four key acquisitions. The company announced its intention to exit the asset-heavy Legacy Commercial Programs business over the next three to four years to focus on higher-margin activities. Consolidated sales increased by 19.0% to $527.5M, with strong growth in both commercial and government sectors, reinforcing its market position in the aviation aftermarket.
Key Highlights
- AAR CORP restructured operating segments into Parts Supply, Repair, Engineering, and Software, Government Solutions, and Legacy Commercial Programs.
- Company announced plans to exit its Legacy Commercial Programs business over approximately three to four years.
- Completed four acquisitions in fiscal 2026 for a total of $270.1M, expanding product and service offerings.
- Consolidated sales increased by $527.5M, or 19.0%, in fiscal 2026 over the prior year.
- Commercial sales grew $408.0M (20.6%), and government sales increased $119.5M (14.9%).
- Fiscal 2026 segment sales: Parts Supply 45%, Repair, Engineering, and Software 35%, Government Solutions 15%, Legacy Commercial Programs 5%.
- Firm backlog was $777M as of May 31, 2026, with 70% expected to be recognized in fiscal 2027.
- Expanded Airframe MRO facilities in Oklahoma City and Miami to meet growing customer demand.
Price Impact
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