AAR Corp posted sizable year-over-year gains in its key parts and repair segments and sees no sign of commercial aftermarket demand softening, President and CEO John Holmes said.
“We are not seeing a slowdown anywhere in our bookings in parts, and more importantly, we are not hearing from any of our customers that we should expect a slowdown on the maintenance side,” Holmes said on the company’s fiscal 2027 first quarter earnings call Sept. 29. “We continue to feel very good about the demand environment that we are in.”
The strong performance and short-term outlook led AAR to raise its full-year guidance. The company now sees fiscal 2027 sales increasing in the low teens, which is the upper end of July’s guidance window.
The guidance does not include any anticipated gains from AAR’s MRO Holdings acquisition. The deal, announced Sept. 28, gives AAR a 65% interest in the airframe MRO specialist. It is expected to boost AAR’s revenues by 30% based on fiscal 2026 results for each company.
AAR posted a 24% gain in sales, to $918 million, led by 31% increases in both the Parts Supply and Repair, Engineering & Software (RE&S) segments. Government Solutions was up 4%.
Quarterly net income was $40.1 million, up 16% year over year.
Commercial customer sales were up 28%, or $147.5 million, “primarily due to the acquisition contributions combined with continued above-market Commercial Distribution sales,” the company said. Government sales were up 14%, or $30.9. million. Commercial business generated 73% of AAR’s revenues, up 2% year over year.
The company’s closure of its Indianapolis facility is on track to wrap up by year end. Work is being redistributed to other facilities, including some acquired when AAR bought Haeco.
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