AAR realigns business, winding down legacy commercial programmes

AAR announced that beginning with the fourth quarter of fiscal year 2026, the company will report under a new structure using the following four operating segments: Parts Supply remains unchanged from the prior structure, primarily consisting of new parts Distribution and used serviceable material. Repair, Engineering, and Software primarily consists of maintenance, repair, and overhaul (MRO) services across airframe (Airframe MRO) and components (Component MRO), and AAR’s software platforms, including Trax, Aerostrat, and Airvoyant. Government Solutions primarily consists of AAR’s fleet management and operations of customer-owned aircraft and performance-based logistics programs (Government Programs), and AAR’s Mobility Systems activity previously reported as Expeditionary Services. Legacy Commercial Programs primarily consists of asset-heavy flight hour-based component repair programs for commercial airlines, previously reported within Integrated Solutions. AAR also announced that it intends to wind down its legacy commercial programmes business. For the last 12 months ended February 28, 2026, that business contributed sales of $252.4 million, a GAAP operating loss of ($0.2) million, and adjusted operating income of $5.0 million. Net assets of the segment as of February 28, 2026 were approximately $160 million. “Our segment realignment reflects AAR’s continued focus on growth, margin expansion, and additional cash flow generation,” said John M. Holmes, AAR’s Chairman, President and CEO. “Legacy Commercial Programmes requires significant asset pools and no longer meets our capital return thresholds. We anticipate that the wind-down of this segment will take approximately three to four years. During that timeframe, we expect the results will include periodic gains as we divest the assets that support these programs. We also plan to redeploy the talented team supporting these activities to other AAR growth initiatives. Once complete, we believe the wind-down of Legacy Commercial Programmes will result in a more simplified business model with higher margins and improved returns on capital.” For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]