AAR, the aviation services provider, posted robust second-quarter fiscal 2026 results, driven by double-digit growth across key segments and recent acquisitions.
Sales rose 16% year-over-year to $795 million, with organic growth of 12%. GAAP diluted EPS was $0.90, while adjusted EPS climbed 31% to $1.18. Adjusted EBITDA grew 23% to $97 million, lifting margins to 12.1% from 11.4%.
CEO John M. Holmes highlighted strong performance in parts supply, where sales surged 29%, including 32% organic growth in new parts Distribution. The repair & engineering segment also expanded, supported by efficiency gains and higher component repair volumes. Government sales jumped 23%.
AAR closed two major acquisitions: ADI for $138 million, enhancing its distribution capabilities, and HAECO Americas for $77 million, strengthening its airframe heavy maintenance footprint. The latter deal secured $850 million in multi-year contracts, effectively selling out acquired capacity.
The company reaffirmed its growth trajectory, projecting Q3 sales up 20–22% and full-year FY2026 sales growth approaching 17%, with margins expected to improve further.
Holmes emphasized AAR’s strategy to lead in aviation aftermarket parts, repairs, and software, citing continued momentum for its Trax platform, now used by over 100 airlines globally.