AAR CORP. (AIR) Q1 FY2027 earnings

Reported results

• Sales of $918.0 million increased 24% compared to $739.6 million in Q1 FY2026
• GAAP net income of $40.1 million, or $1.00 per diluted share, compared to $34.4 million, or $0.95 per diluted share, in prior year quarter
• Adjusted diluted EPS of $1.49 increased 38% compared to $1.08 in Q1 FY2026
• Adjusted EBITDA of $116.5 million increased 34% with adjusted EBITDA margin of 12.7%, up 100 basis points from 11.7% in prior year quarter
• Cash flow provided by operating activities of $55.8 million; net leverage of 1.81x as of August 31, 2026

Guidance

• Q2 FY2027 sales growth (ex. LCP): 14% - 16%
• Q2 FY2027 adjusted EBITDA margin (ex. LCP): 13.0% - 13.4%
• Full year FY2027 sales growth (ex. LCP): Low teens
• Note: Guidance does not include any impact of the MRO Holdings acquisition

Notes

Company announced definitive agreement to acquire 65% controlling interest in MRO Holdings; guidance excludes impact of this acquisition. Adjusted net income and adjusted diluted EPS exclude acquisition, integration, and amortization expenses of $24.9 million ($0.62 per share) in Q1 FY2027. Adjusted EBITDA excludes stock-based compensation and acquisition-related expenses.

Price and volatility reaction

The stock moved -7.2% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -7.0 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-28 (8-K, Item 2.02). Read the original filing on sec.gov.