Financial Data and Key Metrics Changes - Sales for fiscal year 2021 decreased by 20% from $2.07 billion to $1.65 billion, while adjusted diluted earnings per share from continuing operations decreased by 39% from $2.15 to $1.31 [4][6] - For Q4, sales increased by 5% from $417 million to $438 million, and adjusted diluted earnings per share increased by 81% from $0.26 to $0.47 [4][5] - Operating margin for Q4 was 5.2%, up from 3.2% in the prior year [5] Business Line Data and Key Metrics Changes - Sales to commercial customers increased by 3%, while sales to government and defense customers increased by 7% [5] - Aviation Services segment sales were up 6.5%, driven by strong government performance and recovery in commercial [10] - Expeditionary Services segment sales were down slightly due to the divestiture of the Composites business [10] Market Data and Key Metrics Changes - The commercial parts supply business has not yet seen significant recovery, as operators continue to consume existing inventory [6] - The company reported strong performance in MRO operations as airlines performed maintenance in anticipation of increased travel [6][14] - The China market experienced a record year, with domestic flying recovering significantly [22] Company Strategy and Development Direction - The company has focused on cost reduction and efficiency optimization, including consolidating facilities and exiting underperforming contracts [7][12] - New business partnerships have been established, including agreements with Fortress and Honeywell, to enhance service offerings [8][10] - The company aims to maintain a strong balance sheet and leverage efficiency gains for future growth [8][14] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the recovery in US domestic leisure flying and anticipates a return to business travel [14] - The company is cautious about the pace of commercial air travel recovery due to uncertainties like the emergence of COVID-19 variants [15] - Management expects Q1 performance to be similar to or modestly better than Q4, despite Q1 typically being the slowest quarter [15] Other Important Information - The company generated $23.5 million from operating activities in Q4 and reduced accounts receivable financing by $9.8 million [6][13] - SG&A expenses were $48.8 million, with an adjusted figure of $46.7 million, reflecting cost control measures [12][13] - The company expects to recognize an impairment charge of $5 million to $10 million in Q1 of fiscal 2022 due to a terminated contract [11] Q&A Session Summary Question: Can you expand on MRO and parts trends? - MRO was stable throughout Q4, with slight improvement in parts trading observed at the beginning of Q1 [19] Question: Is there strength from cargo obscuring passenger weakness? - Cargo business has been stable, with air travel in the US pacing ahead [21] Question: What is the outlook for MRO and parts recovery? - MRO may be smaller but more profitable, while parts business could exceed pre-COVID levels due to increased acceptance of used materials [25][24] Question: What is the current utilization in MRO? - The company has significant capacity left but is focused on attracting skilled labor rather than relying on contract labor [28] Question: Are there any cost inflation pressures? - Most structural changes for margin improvement have been implemented, with future improvements expected from revenue recovery [32] Question: What is the outlook for the defense business? - There is uncertainty in defense contracts, but new distribution agreements are expected to provide growth [46][57] Question: What is the company's exposure to Afghanistan? - One program is being restructured, with a neutral to positive financial impact expected [59] Question: How does the company view PMA opportunities? - The company continues to pursue PMA as part of its growth strategy [55] Question: What are the expectations for cash flow in fiscal 2022? - The company will focus on managing working capital while investing in new opportunities [74]

Financial Data and Key Metrics Changes - Sales decreased 26% year-over-year from $553 million to $410 million, and adjusted diluted earnings per share from continuing operations decreased 45% from $0.67 to $0.37 [3][4] - Adjusted gross margin improved sequentially from 13.9% to 16.1%, and operating margin improved from 4% to 5% [5][11] - Cash generated from operating activities was $18 million, with a net debt to adjusted EBITDA ratio of 1.1 times [6][11] Business Line Data and Key Metrics Changes - Sales to commercial customers decreased 42%, while sales to government and defense customers increased 4%, accounting for 49% of total sales [3][4] - MRO segment saw a sequential increase in hangar activity due to increased demand, while commercial parts activities remained stable [4][7] - Government business continued strong performance with year-over-year growth for three consecutive quarters [55] Market Data and Key Metrics Changes - Domestic leisure travel demand has increased, with expectations for broader commercial market recovery as vaccine distribution progresses [12] - International markets, particularly Europe and the Rest of Asia, remain soft compared to pre-COVID levels, while China domestic is nearly back to pre-COVID levels [38] Company Strategy and Development Direction - The company plans to leverage its current cost structure to drive continued margin improvement while investing in USM and distribution activities, as well as technology and digital initiatives [12] - Focus on maintaining and expanding margin gains by being selective about the work taken on in the MRO segment [66] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about modest sequential improvement in Q4 and continued recovery thereafter as travel restrictions are lifted [12] - The company is committed to maintaining a strong balance sheet to fund growth opportunities [12] Other Important Information - The company fully recognized its deferred credit from the CARES Act in Q3 and will no longer have income associated with it [9] - A tentative agreement was reached with the Department of Justice to settle an investigation for approximately $11.5 million [10] Q&A Session Summary Question: Sequential performance trends in commercial business parts versus MRO - Management noted a 7% sequential growth in commercial sales, primarily driven by MRO segment activity [15][16] Question: Expectations for fourth quarter revenues - Management expects modest sequential improvement from Q3 to Q4, but not ready to call for year-over-year improvement [28] Question: Margins and overhead sustainability - The majority of overhead reductions are expected to be sustainable through recovery, with a focus on maintaining margin improvements [24][25] Question: Domestic versus international commercial exposure - Historically, the business mix is 65% domestic and 35% international, with domestic recovery pacing ahead of international [38] Question: Fortress deal significance - The Fortress deal is expected to be a meaningful contributor to future results, with initial material received [40] Question: Pricing and supply dynamics in the parts market - Management noted significant variation in pricing based on asset type but refrained from providing specific details for competitive reasons [46] Question: Future state department funding visibility - There is currently no meaningful change expected regarding additional state department funding [59]

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 November 30, 2020 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 No. 1-6263 AAR CORP. (Exact name of registrant as specified in its charter) Delaware 36-2334820 (State or other jurisdiction of i ...

AAR Corp. (NYSE:AIR) Q2 2021 Earnings Conference Call December 17, 2020 4:45 PM ET Company Participants John Holmes - CEO, President & Director Sean Gillen - VP & CFO Conference Call Participants Robert Spingarn - Crédit Suisse Joseph DeNardi - Stifel, Nicolaus & Company Ken Herbert - Canaccord Genuity Michael Ciarmoli - Truist Securities Operator Good afternoon, ladies and gentlemen, and welcome to AAR's Fiscal 2021 Second Quarter Earnings Call. We are joined today by John Holmes, President and Chief Execu ...

AAR Corp. (NYSE:AIR) Q1 2021 Results Earnings Conference Call September 24, 2020 4:45 PM ET Company Participants John Holmes - President and CEO Sean Gillen - Chief Financial Officer Conference Call Participants Robert Spingarn - Credit Suisse Joseph DeNardi - Stifel Ken Herbert - Canaccord Michael Ciarmoli - Truist Josh Sullivan - The Benchmark Company Operator Good afternoon, ladies and gentlemen. And welcome to AAR’s Fiscal 2021 First Quarter Earnings Call. We are joined today by John Holmes, President a ...

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 August 31, 2020 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 No. 1-6263 AAR CORP. (Exact name of registrant as specified in its charter) Delaware 36-2334820 (State or other jurisdiction of inc ...

AAR Corp. (NYSE:AIR) Q4 2020 Earnings Conference Call July 21, 2020 4:45 PM ET Company Participants John Holmes - President & Chief Executive Officer Sean Gillen - Chief Financial Officer Conference Call Participants Robert Spingarn - Credit Suisse Joseph DeNardi - Stifel Michael Ciarmoli - SunTrust Josh Sullivan - Benchmark Ken Herbert - Canaccord Operator Good afternoon, ladies and gentlemen and welcome to AAR's Fiscal 2020 Fourth Quarter Earnings Call. We are joined today by John Holmes, President and Ch ...