AAR Posts 25% Q3 Sales Jump and Lifts Full-Year Outlook

Overview

• AAR reported third-quarter fiscal 2026 results with total sales up 25% and adjusted operating income up 31%, with gains across parts, repair, and software.
• Organic growth was led by new parts distribution, which rose 36%, as the company leaned on its exclusive supplier model that feeds both airline and defense customers.
• Management guided to 19% to 21% total adjusted sales growth for the fourth quarter and raised full‑year organic sales expectations to about 12%.
• The HAECO Americas integration is running ahead of plan, and AAR plans to exit a high‑cost Indianapolis site by Q4 fiscal 2027 to help lift Repair & Engineering margins.
• The Trax aviation software business has doubled revenue since acquisition and is projected to reach about $100 million with a Delta rollout and a 2026 launch of a parts marketplace, while a $450 million multi‑year government award expands defense work as the firm reports no current disruption from Middle East tensions.