AAR Corp. reported its third‑quarter fiscal 2026 results, posting revenue of $845.1 million, a 25% year‑over‑year increase that surpassed the consensus estimate of $812.2 million.
Adjusted earnings before interest, taxes, depreciation and amortization rose to $102 million, up 26% from the same quarter last year and beating the $102.1 million estimate. The company’s adjusted operating margin expanded to 10.2% from 9.7% YoY, driven by a higher mix of high‑margin distribution and software services and offset by a one‑time bargain purchase gain related to the HAECO Americas acquisition.
Adjusted earnings per share reached $1.25, a 7.8% beat over the consensus estimate of $1.16. The earnings lift was largely fueled by a 45% growth in the Parts Supply segment, a 36% organic increase in new parts distribution, and a 55% organic rise in government sales, all of which contributed to higher revenue and margin performance.
Cash from operations totaled $74.7 million and net leverage fell to 2.17x, comfortably within the company’s target range of 2.0x to 2.5x. The strong cash flow position supports AAR’s strategy of funding future acquisitions and returning capital to shareholders.
Management reiterated its outlook for the fourth quarter, projecting sales growth of 19%–21% and an adjusted operating margin of 10.2%–10.5%. For the full year, AAR raised its sales growth guidance to 19% and organic growth to 12%, reflecting confidence in continued demand and execution.
The company highlighted progress on its strategic acquisitions, noting that the integration of ADI and HAECO Americas is ahead of schedule and contributing to the quarter’s growth. The acquisitions are expected to enhance AAR’s product portfolio and market reach, particularly in government and commercial aviation segments.
Investors responded positively to the results, citing the earnings beat, margin expansion, and raised guidance as key drivers of the company’s strong performance.
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