Short answer
AAR CORP (AIR) filed its fiscal 2026 10-K annual report with the SEC on Jul 22, 2026. It reported revenue of $3.3B (+19.0% year over year) and net income of $188M.
- Top risk flagged: DoC Section 232 investigation on commercial aircraft and parts imports may materially impact company operations
FY2026 key financial metrics · XBRL
- Revenue
- $3.3B
- +19.0% YoY
- Net income
- $188M
- +1401.6% YoY
- Gross margin
- 18.8%
- −0.2 pp YoY
- EPS (diluted)
- $4.86
- +1288.6% YoY
- ROE
- 11.0%
- +10.0 pp YoY
- Operating cash flow
- $99M
- +173.4% YoY
Source: XBRL data from the AAR CORP (AIR) FY2026 10-K on SEC EDGAR. USD.
AAR CORP FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Independent provider of global aviation aftermarket solutions including parts distribution, MRO, engineering, and software services
- New operating segments: Government Solutions and Legacy Commercial Programs split from Integrated Solutions; Repair segment renamed Repair, Engineering, and Software
- Strategic shift: Multi-year wind-down of Legacy Commercial Programs due to poor capital return; focus on higher-margin parts distribution and software platforms
- Acquisitions: Four in fiscal 2026 totaling $270.1M, including ADI ($137.1M) for electronic components and HAECO Americas ($78.0M) expanding North American MRO footprint
- Sales growth: Consolidated sales up 19.0% ($527.5M), driven by 20.6% jump in commercial parts distribution including $82.2M from ADI and $131.1M from HAECO acquisition
Management Discussion & Analysis
- Revenue $3,308.0M, up 19.0% YoY; Commercial sales $2,384.1M (+20.6%), Government sales $923.9M (+14.9%)
- Operating income increased 50.0% to $278.1M; consolidated gross margin stable at 18.8% vs 19.0% prior year
- Best segment: Parts Supply sales $1,487.7M (+35.3%), operating income $186.2M (+18.8%), margin 12.5% vs 14.3%; worst: Legacy Commercial Programs sales $237.2M (-6.8%), operating income $0M vs $8.6M, margin 0% vs 3.4%
- Cash from operations $98.7M vs $36.1M prior year; investing cash flow -$308.7M due to acquisitions; financing cash flow +$208.6M including $273.9M stock offering, $350M debt issuance; no share repurchases in 2026
- Management plans 3-4 year Legacy Commercial Programs exit; focusing on high-margin parts distribution, repair, software growth; risks include integration and market uncertainties
Risk Factors
- DoC Section 232 investigation on commercial aircraft and parts imports may materially impact company operations
- Russia-Ukraine and Middle East conflicts causing jet fuel price increases impacting airline customers and demand
- Dependence on key suppliers risks product supply disruptions and price hikes threatening margins
- Competition from OEMs and airline-owned MRO operations with greater resources and integrated service bundles
- $900M debt outstanding with restrictive covenants limiting financial flexibility and increasing vulnerability to economic downturns
Generated from the filing text; verify against the original. How to read a 10-K
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