AAR CORP. Restructures Segments, Winds Down Commercial Programs
AAR CORP. announced a significant restructuring of its operating segments and the wind-down of its Legacy Commercial Programs business. The company's chief operating decision maker implemented changes to realign business units, resulting in four new segments: Parts Supply, Repair, Engineering, and Software, Government Solutions, and Legacy Commercial Programs. The wind-down of the asset-heavy Legacy Commercial Programs business, which contributed $252.4 million in sales and an adjusted operating income of $5.0 million for the last twelve months ended February 28, 2026, is expected to take 3-4 years. This strategic move aims to simplify the business model, achieve higher margins, and improve returns on capital, with the company's Q4 and fiscal year 2026 guidance remaining unchanged.
Key Highlights
- AAR CORP. realigned its operating segments into four: Parts Supply, Repair, Engineering, and Software, Government Solutions, and Legacy Commercial Programs.
- The company announced the wind-down of its Legacy Commercial Programs business, expected to take approximately 3-4 years.
- Legacy Commercial Programs contributed $252.4 million in sales for the last twelve months ended February 28, 2026.
- This segment reported a GAAP operating loss of ($0.2) million and adjusted operating income of $5.0 million for the same period.
- Net assets of the Legacy Commercial Programs segment were approximately $160 million as of February 28, 2026.
- The segment realignment and wind-down do not affect the company's guidance for Q4 and fiscal year 2026.
- Recast historical financial information for fiscal years 2024, 2025, and Q1-Q3 2026 was provided.
- For FY2025, Parts Supply sales were $1,099.6 million and Repair, Engineering, and Software sales were $931.0 million.