AAR Corporation has announced a strong financial performance for the first quarter of fiscal 2027, driven by significant gains in its aerospace parts and repair segments. The company’s leadership expressed confidence in the sustained demand from commercial aerospace customers, with no signs of a slowdown in bookings or maintenance activity.
According to President and CEO John Holmes, the company’s demand environment remains robust, leading to an upward revision of the full-year sales guidance to a low teens percentage increase. Notably, this outlook excludes potential gains from the recent acquisition of a majority stake in MRO Holdings, which is expected to contribute an additional 30% revenue boost based on previous fiscal results.
Financial Highlights and Growth Drivers
AAR reported a 24% increase in sales, reaching $918 million, supported by substantial growth in the Parts Supply and Repair, Engineering & Software segments. Quarterly net income rose by 16% to $40.1 million. The company’s commercial customer sales increased by 28%, fueled by contribution from acquisitions and steady growth in the distribution business. Government sales also experienced a 14% rise.
"We are not observing any slowdown in our bookings or customer demand," said Holmes. "Our outlook remains positive, and we are optimistic about the growth prospects for the remainder of the year."
Additionally, the company’s plan for closing its Indianapolis facility remains on schedule, with operations being redistributed to other sites, including those acquired during the Haeco acquisition. This strategic move is part of AAR’s broader expansion and efficiency improvement initiatives.
