AAR CORP. (NYSE: AIR), a leading provider of aviation services, announced its financial results for the third quarter of fiscal year 2026, ending February 28, 2026. The company reported a remarkable 25% increase in sales, reaching $845 million compared to $678.2 million in the same quarter last year. This growth was driven by strong performance across all segments, particularly in Parts Supply, which saw a 45% increase in sales. The company also reported a GAAP diluted earnings per share (EPS) of $1.71, a significant improvement from a net loss of $8.9 million or $0.25 per share in the prior year quarter. Adjusted diluted EPS rose to $1.25, marking a 26% increase year-over-year.

John M. Holmes, AAR’s Chairman, President, and CEO, expressed optimism about the company’s performance, stating, "AAR delivered another outstanding quarter, continuing our momentum. Total sales were up 25%, including 14% organic adjusted sales growth. We saw growth across each of our parts, repair, and software platform activities in the quarter."

The company’s adjusted EBITDA also increased by 26% to $102 million, with an adjusted EBITDA margin rising to 12.1% from 12.0% in the previous year. AAR’s cash flow from operations was strong, amounting to $75 million, which helped reduce net leverage to 2.17x, comfortably within the target range of 2.0x to 2.5x.

Looking ahead, AAR provided guidance for the fourth quarter and full year fiscal 2026, projecting total sales growth of 19% to 21% and organic sales growth of 6% to 8%. The company remains focused on strategic growth opportunities, including ongoing integration of recent acquisitions and expansion of its service offerings. Holmes concluded, "We see significant opportunity for continued profitable growth ahead, supported by resilient and growing demand for our aviation aftermarket solutions."

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