AAR (AIR) Investor presentation summary

Segment realignment and organizational changes

• Business units were reorganized in Q4 FY26, creating new segments: Government Solutions, Repair, Engineering & Software, and Legacy Commercial Programs.

• Government Programs and Mobility Systems merged into Government Solutions; software platforms moved to Repair, Engineering & Software.

• Legacy Commercial Programs now reported as a standalone segment.

• Changes aim to align operations with core business areas and improve performance measurement.

• New segment structure reflected in financials from May 31, 2026.

Financial performance by segment (LTM Q3 FY26)

• Parts Supply: $1,369M sales, 13.7% adjusted operating margin, 14.7% adjusted EBITDA margin.

• Repair, Engineering & Software: $999M sales, 11.0% adjusted operating margin, 12.7% adjusted EBITDA margin.

• Government Solutions: $514M sales, 9.7% adjusted operating margin, 12.8% adjusted EBITDA margin.

• Legacy Commercial Programs: $234M sales, 2.1% adjusted operating margin, 5.3% adjusted EBITDA margin.

Strategic benefits and outlook

• Segmentation aligns with focused operations in parts, repair, and software.

• Enhanced transparency and performance measurement expected.

• Wind-down of low-return Commercial Programs anticipated to improve margins and ROIC.

• Forward-looking statements highlight expected benefits but note risks and uncertainties.