AAR Corp. (NYSE:AIR) Q2 2024 Earnings Conference Call December 21, 2023 4:45 PM ET Company Participants John Holmes - Chairman, President and Chief Executive Officer Sean Gillen - Chief Financial Officer Conference Call Participants Robert Spingarn - Melius Research Bert Subin - Stifel Steve Strackhouse - RBC Capital Markets Operator Good afternoon, everyone. Welcome to AAR’s Fiscal 2024 Second Quarter Earnings Call. We are joined today by John Holmes, Chairman, President and Chief Executive Officer; and Se ...

Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended November 30, 2023 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-6263 AAR CORP. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Financial Data and Key Metrics Changes - Sales for Q1 2024 increased by 23% year-over-year, rising from $446 million to $559 million [4] - Adjusted operating margin improved to 7.3%, up from 6.9% in the prior year quarter, marking the 10th consecutive quarter of year-over-year margin expansion [5][6] - Adjusted diluted earnings per share from continuing operations reached a record $0.78, up 28% from $0.61 [6] Business Line Data and Key Metrics Changes - Parts Supply sales surged by 40% year-over-year, driven by USM investments and distribution wins [4] - Repair and Engineering sales rose by 8%, supported by strong hangar performance, although landing gear operations experienced a slowdown [5] - Integrated Solutions sales increased by 22%, attributed to higher flight hours in the power-by-the-hour program and government program strength [5] Market Data and Key Metrics Changes - Sales to commercial customers grew by 34%, while sales to government customers increased by 3% [4][9] - Gross profit margin for the quarter was 18.4%, consistent with the prior year quarter on a reported basis [9] Company Strategy and Development Direction - The company is focused on expanding its Parts Supply segment and has made significant investments to support USM demand and distribution lines [6][12] - New multiyear agreements with Moog and Pall Corporation are expected to enhance growth opportunities and customer reach [7][8] - The company anticipates continued strong demand for parts and services, despite potential challenges from low-cost carriers and inflation [13][15] Management's Comments on Operating Environment and Future Outlook - Management expects mid to high teens year-over-year sales growth for Q2, with operating margins similar to or better than the previous year [15] - The company remains optimistic about the aviation industry's growth, despite some signs of slowing demand in certain segments [13] - Management highlighted the importance of maintaining flexibility in response to potential government shutdowns and budgetary constraints [14] Other Important Information - The company reported a net inventory investment of $38 million in the Parts Supply segment to support demand [6][12] - AAR has not purchased parts from a supplier involved in a recent quality incident, emphasizing its commitment to safety and quality [7] Q&A Session Summary Question: Sales growth and future guidance - Management expressed pride in the strong sales growth and indicated that they expect to exceed long-term growth targets in the near term [19] Question: GTF situation impact - The GTF situation is seen as a positive for the company, as it emphasizes the need for current generation aircraft, benefiting AAR's business [20] Question: Distribution margins - Management indicated that distribution margins are expected to be higher than the overall company margin, contributing positively to operating margins [23] Question: Sequential margin decline - A slight sequential decline in margins was attributed to a strong prior quarter and a mix of performance across segments [25] Question: Second quarter guidance - Management expects slight sequential growth in Q2, with less severe seasonality compared to pre-COVID periods [28] Question: Landing gear slowdown - The landing gear business is experiencing a natural decline due to its overhaul cycle, which is expected to pick up again in the future [31] Question: USM material profitability - The company is paying higher prices for USM material but is also able to charge higher prices, maintaining historical spreads [33][34] Question: Aftermarket pricing - Strong pricing is being commanded in the aftermarket, with adjustments being made to maintain profitability amid rising labor costs [37] Question: Labor rate pressures - Labor rates have remained stable, with ongoing negotiations in the airline industry potentially affecting future costs [45]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File Number: 1-6263 AAR CORP. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 36-2334820 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended August 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Fo ...

AAR Corp. (NYSE:AIR) Q4 2023 Earnings Conference Call July 18, 2023 4:45 PM ET Company Participants John Holmes - Chairman, President and CEO Sean Gillen - CFO Conference Call Participants Peter Osterland - Truist Securities Kenneth Herbert - RBC Capital Markets Joshua Sullivan - The Benchmark Company Robert Spingarn - Melius Research Operator Good afternoon, everyone, and welcome to AAR's Fiscal 2023 Fourth Quarter Earnings Call. We're joined today by John Holmes, Chairman, President and Chief Executive Of ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended May 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 1-6263 AAR CORP. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporati ...

AAR Corp. (NYSE:AIR) Q3 2023 Earnings Conference Call March 20, 2022 4:45 PM ET Company Participants John Holmes - President & CEO Sean Gillen - CFO Conference Call Participants Robert Spingarn - Melius Research Josh Sullivan - Benchmark Michael Ciarmoli - Truist Steve Strackhouse - RBC Capital Markets Operator Good afternoon, everyone, and welcome to AAR's Fiscal 2023 Third Quarter Earnings Call. We're joined today by John Holmes, Chairman, President and Chief Executive Officer; and Sean Gillen, Chief Fina ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended February 28, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-6263 AAR CORP. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

AAR Corp. (NYSE:AIR) Q1 2023 Earnings Conference Call September 22, 2022 4:45 PM ET Company Participants John Holmes - President and CEO Sean Gillen - Chief Financial Officer Conference Call Participants Mike Ciarmoli - Truist Josh Sullivan - Benchmark Company Steve Strackhouse - RBC Capital Markets Operator Good day. And welcome to AAR Corp.’s Q1 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer sessi ...

AAR Corp (NYSE:AIR) Q4 2022 Earnings Conference Call July 21, 2022 8:30 AM ET Company Participants Sean Gillen - VP & CFO John Holmes - CEO, President & Director Conference Call Participants Kenneth Herbert - RBC Capital Markets Joshua Sullivan - The Benchmark Company Michael Ciarmoli - Truist Securities Operator Good Day, and thank you for standing by. Welcome to the AAR Corp. Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. ...