Aar Corp Q1 2026 results

These risks and uncertainties are discussed in the company's earnings release and the risk factor section of the company's annual report on Form 10-K for the fiscal year ended May 31, 2025. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the company's earnings release and slides. We are particularly proud of the 17% organic adjusted sales growth that we drove in the quarter. This has been our fastest growing activity, averaging more than 20% organic growth in each of the last four years.

Third, our Trax software solution has continued its momentum on the back of the major win we announced with Delta Air Lines in June. Additionally, we further enhanced our software capabilities with the acquisition of Aerostrat, which we completed in the quarter. Moving to cost efficiency, we are continuing the rollout of our paperless hangar solution, which drove increased throughput, leading to another quarter of sales growth out of the same hangar footprint. In component services, now that we have substantially completed the product support integration, our focus is to drive incremental volume through the acquired sites, which will lead to additional margin expansion.

Also during the quarter, we acquired Aerostrat, a maintenance planning software provider, which immediately expands the reach of our software offerings and the enterprise resource planning system capabilities of our Trax software solution. Aerostrat brings exciting opportunities for growth with the potential for further integration and scope expansion among existing Trax customers. Looking now to slide five, total adjusted sales in the quarter grew 13% to $740 million year-over-year. However, excluding the sale of landing gear, which contributed sales of $19 million in last year's quarter, Q1 organic sales growth is 17%.