AAR (AIR) Q3 2026 Earnings Call Transcript

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Tuesday, March 24, 2026 astatine 5 p.m. ET

• President & Chief Executive Officer — John Holmes

• Chief Financial Officer — Dylan Wolin

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John Holmes: Great. Thank you, Chris, and welcome, everyone, to our 3rd 4th fiscal twelvemonth 2026 net league call. I'll statesman with cardinal messages for the 4th connected Slide 3. First, this was different outstanding 4th for AAR. Our focused concern exemplary is driving maturation that is delivering durable results successful some commercialized and authorities extremity markets arsenic evidenced by our 3rd 4th performance. . Second, we continued our momentum successful the 4th and delivered 25% maturation successful full sales, 31% maturation successful adjusted operating income and 26% maturation successful some adjusted EBITDA and adjusted net per stock for the period. We saw maturation crossed each of our parts, repair and bundle level activities successful the quarter.

Total income summation included 14% integrated adjusted income maturation led by 36% integrated maturation successful our caller parts organisation activity. Third, we are continuing to execute crossed cardinal initiatives advancing our strategical priorities. For example, successful Repair & Engineering, the integration of HAECO Americas is up of schedule, and our hanger expansions are connected way with Oklahoma City present complete, and I americium expected to beryllium operational aboriginal this summer. In parts supply, ADI is performing supra expectations, and we proceed to thrust outsized maturation successful our caller parts organisation activities. Also, our Trax bundle level continues to summation momentum by increasing its basal of recurring gross with caller and existing customers.

Finally, we are cautiously managing our equilibrium expanse for their strategical flexibility arsenic we support our disciplined attack to superior allocation. We ended the 3rd 4th with nett leverage wrong our people range, supported by our beardown operating currency travel successful the period. Before I spell to Slide 4, I would similar to invited Dylan Wolin backmost to AAR arsenic the company's caller Chief Financial Officer. Dylan was with the institution from 2017 to 2024, it was instrumental successful processing the strategy we are executing today. I would besides similar to convey Sarah Flan again for doing an outstanding occupation arsenic our interim CFO implicit the past fewer months. I'm arrogant to beryllium portion of specified a beardown team.

I besides privation to speech for a infinitesimal astir the existent environment. We are intimately monitoring the events successful the Middle East that person been successful changeless interaction with our customers. And galore of our customers person said publicly, Fundamental request for aerial question remains incorrect with bookings astatine grounds levels adjacent since the commencement of the conflict. While immoderate customers whitethorn marque humble capableness adjustments, astatine this time, we are not anticipating immoderate meaningful interaction to their attraction schedules oregon request for parts. They proceed to archer america they are preparing for a engaged summertime question season, and we are readying accordingly.