Financial Data and Key Metrics Changes - The company reported record full-year results of $2,800,000,000, up 20% from the prior year [8] - Adjusted EBITDA margin increased by 140 basis points to 11.8% in fiscal year 2025 [8] - Adjusted diluted earnings per share rose to $3.91 from $3.33 last year, reflecting a 17% increase [9] Business Line Data and Key Metrics Changes - Parts Supply sales grew 17% to $306,000,000 year over year, with above-market growth of over 20% in new parts distribution activities [18][19] - Repair and Engineering sales increased by 3% to $223,000,000, with organic sales growth of 8% when excluding the landing gear divestiture [20] - Integrated Solutions adjusted sales increased by 10% year over year to $181,500,000 [21] Market Data and Key Metrics Changes - Sales to government customers increased by 21%, while sales to commercial customers rose by 12% from the same period last year [16] - Total commercial sales accounted for 69% of total sales, with government sales making up the remaining 31% [16] Company Strategy and Development Direction - The company aims to expand market share in new parts distribution and parts supply, while also adding capacity to its heavy maintenance network [25][26] - Continued focus on cost efficiency and synergy realization, with expectations to achieve $10,000,000 in annual cost synergies [27] - The company plans to enhance its digital offerings and intellectual property through investments in Trax [28] Management's Comments on Operating Environment and Future Outlook - Management expects organic sales growth to approach 9% for fiscal year 2026, based on the previous year's adjusted sales [30] - The company anticipates continued strong demand for airframe MRO services, despite potential capacity reductions from some airlines [76] - Management remains optimistic about the growth potential of the Trax software solution, aiming to double its revenue [46][47] Other Important Information - The company reduced its net debt leverage from 3.06 to 2.72x, driven by strong cash flow and proceeds from the landing gear divestiture [23] - The Oklahoma City and Miami MRO expansions are expected to add 15% capacity to the network, with demand already secured [51] Q&A Session Summary Question: Guidance for revenue growth in the first quarter - Management indicated that the wide range in guidance is influenced by the USM environment and larger transactions that may fluctuate [38] Question: Adjusted EBITDA margins in the repair and engineering segment - The decline in margins was attributed to the closure of the New York facility, with expectations for improvement as the integration is completed [39] Question: Long-term revenue potential for Trax - Management expressed confidence in doubling Trax's revenue, supported by new business wins and upgrades of existing customers [46][47] Question: Capacity in the Oklahoma City and Miami hangars - Management confirmed that the capacity is already sold, with eager customers ready to utilize the facilities as soon as they are operational [51] Question: Growth rate for the Triumph business - The Triumph product support business contributed to an 8% growth in the repair and engineering segment, now fully integrated into the results [50] Question: Long-term vision for the USM business - Management expects USM's contribution to sales to decrease as other segments grow, focusing on parts distribution as a major growth area [66] Question: Potential for restarting dividends or share repurchases - Management indicated that share repurchases would be prioritized over dividends if leverage targets are met without M&A activity [60]

FY25 Financial Performance - Adjusted sales increased by 20% from $2.3 billion in FY24 to $2.8 billion in FY25[10] - Adjusted EBITDA increased by 34% from $242 million in FY24 to $324 million in FY25[10] - Adjusted EPS increased by 17% from $3.33 in FY24 to $3.91 in FY25[10] - Net leverage decreased from 3.30x in FY24 to 2.72x in FY25[10] Q4 FY25 Financial Performance - Adjusted EPS increased by 32% from $0.88 in Q4 FY24 to $1.16 in Q4 FY25[14] - Adjusted sales increased by 12% from $658.8 million in Q4 FY24 to $735.8 million in Q4 FY25[14] - Adjusted operating income increased by 25% from $61.3 million in Q4 FY24 to $76.9 million in Q4 FY25[14] - Adjusted EBITDA increased by 19% from $76.4 million in Q4 FY24 to $90.9 million in Q4 FY25[14] Segment Performance in Q4 FY25 - Parts Supply sales increased by 17% from $260.3 million in Q4 FY24 to $305.5 million in Q4 FY25[14] - Integrated Solutions sales increased by 10% from $165.8 million in Q4 FY24 to $181.5 million in Q4 FY25[14]

Exhibit 99.1 AAR reports fourth quarter and fiscal year 2025 results Wood Dale, Illinois, July 16, 2025 — AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, reported today financial results for the fourth quarter and fiscal year 2025 ended May 31, 2025. FOURTH QUARTER FISCAL YEAR 2025 HIGHLIGHTS (As compared to Q4 FY2024) FISCAL YEAR 2025 HIGHLIGHTS (As compared to FY2024) "In Fiscal Year 2025, we delivered record sales and profitability an ...

Core Insights - AAR CORP. reported record sales and profitability for fiscal year 2025, achieving a 20% increase in consolidated sales to $2.8 billion compared to fiscal year 2024 [2][13] - The company completed the integration of the Product Support acquisition and divested its Landing Gear Overhaul business for $48 million, optimizing its portfolio [2][6] - AAR's adjusted EBITDA grew by 34% year-over-year, reflecting improved margins and operational efficiency [5][15] Fourth Quarter Fiscal Year 2025 Highlights - Fourth quarter sales increased by 15% to $754.5 million, with adjusted diluted EPS rising 32% to $1.16 [5][8] - Adjusted EBITDA for the fourth quarter was $91 million, up 19%, with an adjusted EBITDA margin of 12.4%, an increase from 11.6% [5][10] - Sales to commercial customers rose by 12%, while sales to government customers increased by 21% [7][12] Fiscal Year 2025 Highlights - Full fiscal year net income was $12.5 million, or $0.35 per diluted share, down from $46.3 million in fiscal year 2024 [15][25] - Adjusted diluted EPS for the year was $3.91, compared to $3.33 in the previous year, indicating improved operating efficiency [15][36] - Operating margins improved to 6.7% from 5.6% in fiscal year 2024, with adjusted operating margins increasing to 9.6% from 8.3% [14][15] Recent Updates - AAR implemented Trax's eMRO and eMobility solutions across Delta TechOps and secured new license agreements for Trax software [6][17] - The company signed a new parts Distribution Supply Chain Alliance charter with the U.S. Defense Logistics Agency [6] - AAR's net leverage decreased from 3.58x to 2.72x, reflecting a stronger balance sheet and reduced debt [12][13] Financial Performance - Selling, general, and administrative expenses decreased to $77.4 million from $94.8 million in the prior year quarter [9] - Cash flow from operating activities for the fourth quarter was $51.4 million, compared to $24.5 million in the prior year quarter [12][27] - As of May 31, 2025, net debt stood at $880.5 million, down from $911.2 million a year earlier [12][38]

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Core Insights - Aerospace-Defense Equipment stocks are expected to benefit from strategic mergers and acquisitions, enhancing operational scale and market presence, despite ongoing supply-chain challenges affecting aircraft deliveries and profitability [1][3][5]. Industry Overview - The Zacks Aerospace-Defense Equipment industry includes firms manufacturing essential components for aerospace and defense, such as aerostructures, propulsion systems, and defense electronics, while also providing aftermarket support services [2]. Trends Shaping the Industry - Recent mergers and acquisitions, such as TransDigm's $110 million acquisition of Servotronics and Teledyne's acquisition of Maretron assets, are expected to improve economies of scale and revenue growth [3]. - Global air passenger traffic is projected to grow by 5.8% year-over-year in 2025, indicating strong growth potential for aerospace-defense equipment stocks, particularly in commercial aviation [4]. Supply Chain Challenges - Supply-chain disruptions are impacting aircraft deliveries, with current deliveries 30% below peak levels, contributing to a backlog of 17,000 aircraft, which represents an 18% shortfall of the active global fleet [5]. Industry Performance - The Zacks Aerospace-Defense Equipment industry has outperformed both the S&P 500 composite and its sector, with a collective stock surge of 46.2% over the past year compared to 27.1% for the Aerospace sector and 10.9% for the S&P 500 [8]. Valuation Metrics - The industry is currently trading at an EV/Sales ratio of 11.14X, significantly higher than the S&P 500's 5.41X and the sector's 3.27X, indicating a premium valuation for capital-intensive aerospace-defense stocks [11]. Notable Companies - **Heico Corp.**: Expected to see a 13.3% sales improvement in fiscal 2025, with a long-term earnings growth rate of 17.6% [15][16]. - **AAR Corp.**: Anticipated 17.2% sales growth in fiscal 2025, with a Zacks Rank of 2 (Buy) [17][18]. - **Curtiss-Wright**: Projected 8.8% sales growth in fiscal 2025, recently awarded an $80 million contract by the USAF [20][22].

Core Viewpoint - AAR CORP. is set to release its financial results for the fourth quarter of fiscal year 2025 on July 16, 2025, after the market closes, indicating a focus on transparency and communication with investors [1]. Financial Results Announcement - The financial results will cover the period ending May 31, 2025, highlighting the company's performance in the aviation services sector [1]. - AAR will hold a conference call on July 16, 2025, at 4 p.m. Central time to discuss the results, providing an opportunity for stakeholders to engage directly with the company's management [2]. Conference Call Details - The conference call will be accessible via a listen-only webcast and participants can join by registering online to receive a dial-in number and unique PIN [2]. - A replay of the conference call will be available shortly after its completion and will remain accessible for approximately one year, ensuring that interested parties can review the information at their convenience [3]. Company Overview - AAR is a global aerospace and defense aftermarket solutions company, operating in over 20 countries and headquartered in the Chicago area [4]. - The company supports both commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services [4].

Core Insights - AAR CORP.'s subsidiary Trax has been selected to modernize Delta TechOps' maintenance and engineering systems, indicating a significant partnership in aviation maintenance technology [1][2] - The modernization will involve replacing legacy systems with Trax's eMRO and eMobility solutions, enhancing efficiency and operational performance for over 6,000 technicians [2][4] - AAR's strategic investments in Trax have positioned the company to support large airlines and diverse fleets, showcasing its growth and capability in the aviation sector [3][4] Company Overview - AAR CORP. is a global aerospace and defense aftermarket solutions provider, operating in over 20 countries and supporting both commercial and government customers through various segments [4] - Trax, as a wholly-owned subsidiary of AAR, specializes in aviation maintenance mobile and cloud products, offering comprehensive software solutions for aircraft maintenance [5] - Delta TechOps, the maintenance division of Delta Air Lines, provides extensive maintenance, repair, and overhaul services, emphasizing safety, quality, and innovation in aviation maintenance [6]

Group 1 - The Aerospace Forum aims to identify investment opportunities in the aerospace, defense, and airline sectors, leveraging data analytics for informed decision-making [2] - The industry is characterized by significant growth prospects, with developments that can impact investment theses [2] - The investing group provides direct access to data analytics monitors, enhancing the analytical capabilities for investors [2] Group 2 - The article emphasizes the importance of data-informed analysis in understanding the complexities of the aerospace industry [2] - There is a focus on the potential for growth within the aerospace and defense sectors, suggesting a favorable investment environment [2]

WOOD DALE, Ill., May 6, 2025 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced today that the Company's senior management will participate in the upcoming conferences listed below. 2025 Wells Fargo Industrials & Materials Conference in Chicago on June 11th Sean Gillen, AAR's Senior Vice President and Chief Financial Officer, will participate in one-on-one investor meetings. For more information on these conference ...