Here are a couple of brief analogies for AAR Corp.:

• Like AutoZone for airplanes, offering parts, repairs, and maintenance services for commercial and military aircraft.
• The W.W. Grainger of the aviation industry, providing a vast catalog of parts and comprehensive maintenance, repair, and overhaul (MRO) services globally.

• Aftermarket Aviation Support: Provides comprehensive support and services for aviation components and systems.
• Inventory Management & Distribution: Offers services for managing, distributing, and providing supply chain logistics for aviation parts and components.
• Maintenance, Repair, & Overhaul (MRO) Services: Performs inspection, maintenance, repair, and overhaul for aircraft airframes, engines, and various components like landing gears, wheels, and brakes.
• Aviation Parts Sales & Leasing: Sells and leases new, overhauled, and repaired engine and airframe parts and components.
• Expeditionary Logistics & Support: Offers products and services that facilitate the movement of equipment and personnel for governments and non-governmental organizations.
• Specialized Manufacturing: Designs, manufactures, and repairs transportation pallets, containers, shelters, and composite materials for aircraft.
• Engineering & System Integration Services: Provides engineering, design, and system integration, including for command and control systems.

Major Customers of AAR Corp. (AIR)

AAR Corp. serves a diverse range of customers primarily within the commercial aviation, government, and defense markets. These customers are predominantly other companies, governmental entities, and organizations rather than individuals. While specific named companies are not listed in the provided background, the major categories of customers include:

• Airlines: This includes domestic and foreign passenger airlines, domestic and foreign cargo airlines, and regional and commuter airlines.
• Governments and Military: Major customers in this category include the U.S. Department of Defense, other U.S. and foreign governments, and domestic and foreign military customers.
• Other Aviation Industry Entities: This broad category encompasses business and general aviation operators, original equipment manufacturers (OEMs), aircraft leasing companies, and aftermarket aviation support companies.
• Non-Governmental Organizations (NGOs): AAR also supports NGOs with products and services, particularly within its Expeditionary Services segment.

AAR Corp. is an aftermarket provider that sells and leases new, overhauled, and repaired engine and airframe parts and components. To acquire new parts, AAR must purchase them from the original equipment manufacturers (OEMs) or their authorized distributors. Therefore, the major suppliers to AAR are the primary manufacturers of aircraft engines, airframes, and major components.

Major suppliers include:

• General Electric (symbol: GE) (for GE Aerospace products)
• Raytheon Technologies Corporation (symbol: RTX) (for Pratt & Whitney engines and Collins Aerospace components)
• Honeywell International Inc. (symbol: HON)
• Safran S.A.
• The Boeing Company (symbol: BA)
• Airbus SE (symbol: EADSY)

John M. Holmes - Chairman, President and CEO

John M. Holmes is the Chairman, President, and CEO of AAR Corp. He joined AAR in 2001 and has held various leadership positions before becoming President in 2017, CEO in 2018, and Chairman in 2023. Holmes has been instrumental in growing the company through multiple acquisitions, including Airinmar®, Premier Aviation, Trax, Triumph Group's Product Support business, Aerostrat, ADI American Distributors, and HAECO Americas. Under his leadership, AAR also launched a Digital Services organization. Prior to joining AAR, Holmes worked in investment banking and private equity.

Dylan Wolin - Senior Vice President and Chief Financial Officer

Dylan Wolin was appointed Senior Vice President and Chief Financial Officer of AAR Corp., effective February 23, 2026. In this role, he oversees finance, accounting, tax, treasury, investor relations, and corporate development. Wolin previously worked at AAR from 2017 to 2024, leading strategy, corporate development, treasury, and investor relations, where he played a key role in the company's portfolio repositioning and acquisitions like Trax and Triumph Product Support. He rejoined AAR from Federal Signal Corporation, where he served as President of several specialty vehicle businesses from 2024 to 2026. Earlier in his career, Wolin held roles in corporate development at Boeing and investment banking at Deutsche Bank.

Christopher A. Jessup - Senior Vice President and Chief Commercial Officer

Christopher A. Jessup has served as Senior Vice President and Chief Commercial Officer at AAR Corp. since July 2017. He previously held the role of Chief Commercial Officer for AAR's Aviation Services segment starting in 2015. Jessup joined AAR in 2008 through the acquisition of Avborne Heavy Maintenance, Inc., where he had held senior sales and operational roles. His background also includes positions at International Aviation Management Group and ABX Air, Inc. (d.b.a Airborne Express).

Jessica A. Garascia - Senior Vice President, General Counsel, Chief Administrative Officer, and Secretary

Jessica A. Garascia holds the titles of Senior Vice President, General Counsel, Chief Administrative Officer, and Secretary at AAR Corp. She is a key member of the leadership team, reporting directly to the CEO.

Rahul S. Ghai - Senior Vice President and Chief Digital and Technology Officer

Rahul S. Ghai is the Senior Vice President and Chief Digital and Technology Officer at AAR Corp. He joined AAR in 2019 and is responsible for overseeing the Digital Technology & Analytics group, leading the company's digital transformation through technological initiatives. Ghai brings over two decades of experience in technology, having previously served as a managing director of digital technology at United Airlines and also worked at Deloitte Consulting and Sterling Commerce.

1. The cyclical nature of the commercial aviation industry poses a significant risk to AAR Corp.'s operations. The company's performance is highly sensitive to overall economic conditions, which can be negatively impacted by economic downturns, geopolitical instability, high fuel prices, and evolving environmental regulations. Such factors can lead to reduced demand for aviation products and services, affecting AAR's revenue and profitability.
2. AAR Corp. faces substantial operational risks stemming from supply chain disruptions and increasing operational cost pressures. The company's ability to meet contractual obligations and maintain profitability relies heavily on its network of key suppliers and subcontractors. Disruptions in the aerospace industry's supply chain, coupled with potential labor shortages and rising labor costs, could adversely impact AAR's operations and financial results.
3. Compliance and regulatory risks are critical for AAR Corp., particularly due to its involvement with U.S. and foreign governments. Non-compliance with various regulations, including export controls and anti-corruption laws, could lead to severe penalties, damage to its reputation, or the loss of important government contracts.

Commercial Aviation Maintenance, Repair, and Overhaul (MRO) Services

The global commercial aircraft MRO services market was valued at approximately USD 110.7 billion in 2023 and is projected to reach USD 146.9 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 3.3% from 2024 to 2032. Another estimate places the global aircraft MRO market at over USD 80 billion annually, with projections to reach USD 120 billion by 2030. In North America, the MRO demand is expected to grow from USD 28 billion to USD 34 billion by 2035.

Aircraft Aftermarket Parts

The global commercial aircraft aftermarket parts market size reached USD 44.3 billion in 2024 and is expected to grow to USD 72.3 billion by 2033, exhibiting a CAGR of 5.3% during 2025-2033. Other sources indicate the global aircraft aftermarket was valued at USD 33.81 billion in 2024, poised to grow to USD 52.45 billion by 2033. North America is a significant region in this market, holding a 38.1% share and a value of USD 18.8 billion in 2024.

Defense Logistics

The global defense logistics market size was estimated at USD 169.58 billion in 2024 and is projected to reach USD 242.44 billion by 2030, growing at a CAGR of 6.7% from 2025 to 2030. North America held the highest market share of 35.0% in the global defense logistics market in 2023. The U.S. market for defense logistics alone is estimated to reach USD 52.95 billion in 2026.

1. Expansion of New Parts Distribution Business: AAR Corp. is experiencing robust growth in its Parts Supply segment, particularly in new parts distribution. The company is actively capturing market share through its exclusive distribution model and enhancing its production-facing distribution channels. This strategy has consistently delivered strong organic sales growth, exemplified by a 32% increase in new parts distribution in Q2 FY2026.
2. Increased Demand for Maintenance, Repair, and Overhaul (MRO) Services: The commercial aviation industry is seeing a sustained rise in aircraft utilization, leading to a surge in demand for MRO services. A significant factor contributing to this demand is the ongoing shortfall in new aircraft deliveries from major manufacturers, compelling airlines to extend the operational life of their existing, aging fleets, thus necessitating more maintenance work. AAR is capitalizing on this trend by expanding its airframe MRO facilities in Oklahoma City and Miami, which are projected to boost its overall MRO capacity by 15% and add approximately $60 million to annual sales.
3. Strategic Acquisitions: AAR has actively pursued and completed strategic acquisitions to accelerate its growth objectives, expand its service offerings, and enhance market reach. Recent acquisitions, such as ADI in Parts Supply and HAECO Americas in Repair & Engineering, along with Aerostrat to bolster Trax software capabilities, are expected to contribute to future revenue growth by adding new capabilities, capacity, and creating synergies across business segments.
4. Continued Growth in Government and Defense Sales: AAR consistently demonstrates strong performance in its sales to government customers. This segment has shown significant increases, with sales to government clients rising 23% in Q2 FY2026 and 15% in Q1 FY2026. This sustained growth in government and defense contracts is expected to remain a reliable driver of revenue.

Share Repurchases

• AAR's Board of Directors authorized a renewal of its stock repurchase program for up to $150 million of common shares on December 21, 2021.
• This stock repurchase authorization has no expiration date.
• Returning capital to shareholders is a stated priority for AAR's capital allocation.

Share Issuance

• AAR announced an underwritten registered public offering of 3,000,000 shares of its common stock on September 30, 2025.
• The company also intended to grant the underwriters an option to purchase up to an additional 450,000 shares.
• The average diluted share count increased from 35.2 million shares in Q2 FY2025 to 38.1 million shares in Q2 FY2026, primarily due to an equity offering completed during the quarter.

Outbound Investments

• AAR acquired ADI, a distributor of components and assemblies, for $138 million, strengthening its new parts distribution capabilities.
• The company acquired HAECO Americas, a provider of airframe heavy maintenance, for $77 million, expanding its heavy maintenance footprint.
• AAR announced an agreement to purchase Aircraft Reconfig Technologies, an aircraft interiors engineering company, for $35 million, expected to close in Q4 FY2026.

Capital Expenditures

• Purchases of property, plant, and equipment (capex) were $7.4 million in the second quarter of fiscal year 2026, representing a 10.84% decrease year-over-year.
• AAR prioritizes organic investment in its business as part of its capital allocation strategy.