$AIR

AAR CORP

CIK:0000001750|SEC Filings

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Aug. 31, 2026	Aug. 31, 2025
Sales:
Sales	$ 918.0	$ 739.6
Cost of sales:
Cost of sales	741.7	605.9
Gross profit	176.3	133.7
Selling, general, and administrative	107.0	71.8
Earnings from joint ventures	2.8	3.0
Operating income	72.1	64.9
Gains related to sale and exit of businesses, net		0.7
Other expense, net	(0.5)	(0.1)
Interest expense	(16.6)	(18.8)
Interest income	0.4	0.3
Income before income taxes	55.4	47.0
Income tax expense	15.3	12.6
Net income	$ 40.1	$ 34.4
Earnings per share
Earnings per share - basic (in dollars per share)	$ 1.01	$ 0.96
Earnings per share - diluted (in dollars per share)	$ 1	$ 0.95
Shares used for earnings per share:
Weighted average shares outstanding - basic (in shares)	39.6	35.7
Weighted average shares outstanding - diluted (in shares)	39.9	35.9
Products
Sales:
Sales	$ 603.7	$ 487.8
Cost of sales:
Cost of sales	486.0	400.7
Services
Sales:
Sales	314.3	251.8
Cost of sales:
Cost of sales	$ 255.7	$ 205.2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2026	Aug. 31, 2025
Cash flows provided by (used in) operating activities:
Net income	$ 40.1	$ 34.4
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	18.8	13.8
Amortization of financing costs	0.8	0.7
Stock-based compensation expense	7.8	5.3
Earnings from joint ventures	(2.8)	(3.0)
Gain related to sale and exit of business		(1.0)
Changes in certain assets and liabilities:
Accounts receivable	(50.5)	(8.5)
Contract assets	13.3	(6.4)
Inventories	(41.1)	(51.8)
Prepaid expenses and other current assets	(15.4)	3.5
Rotable assets	27.5	(3.5)
Accounts payable	42.1	10.0
Accrued and other liabilities	(1.3)	(26.7)
Other	16.5	(11.7)
Net cash provided by (used in) operating activities	55.8	(44.9)
Cash flows used in investing activities:
Property, plant, and equipment expenditures	(11.8)	(8.7)
Acquisitions, net of cash acquired	(6.2)	(11.9)
Hangar expansion activity, net	(0.5)	(4.2)
Investment	(7.5)
Other	0.4	1.0
Net cash used in investing activities	(25.6)	(23.8)
Cash flows provided by (used in) financing activities:
Short-term borrowings (repayments), net	(15.0)	(97.0)
Proceeds from long-term borrowings		153.0
Financing costs		(2.5)
Stock compensation activity	(9.9)	(2.4)
Net cash provided by (used in) financing activities	(24.9)	51.1
Increase (Decrease) in cash, cash equivalents, and restricted cash	5.3	(17.6)
Cash, cash equivalents, and restricted cash at beginning of period	107.8	109.2
Cash, cash equivalents, and restricted cash at end of period	$ 113.1	$ 91.6

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Aug. 31, 2026	May 31, 2026
Current assets:
Cash and cash equivalents	$ 104.5	$ 84.0
Restricted cash	8.6	23.8
Accounts receivable, less allowances of $14.3 and $14.2, respectively	436.4	386.8
Contract assets	147.3	148.4
Inventories	1,008.9	979.0
Prepaid expenses and other current assets	134.1	120.1
Total current assets	1,839.8	1,742.1
Property, plant, and equipment, net of accumulated depreciation of $247.8 and $242.2, respectively	172.3	166.9
Other assets:
Goodwill	564.8	580.3
Intangible assets, net of accumulated amortization of $61.4 and $53.7, respectively	287.9	281.6
Operating lease right-of-use assets, net	205.3	210.8
Rotable assets, net	150.4	180.3
Other non-current assets	206.4	193.9
Total other assets	1,414.8	1,446.9
Total assets	3,426.9	3,355.9
Current liabilities:
Accounts payable	337.9	295.6
Deferred revenue	40.8	50.3
Accrued liabilities	272.0	267.3
Total current liabilities	650.7	613.2
Long-term debt	879.6	893.9
Operating lease liabilities	98.8	101.1
Deferred tax liabilities	22.5	23.1
Other liabilities	32.9	20.8
Total noncurrent liabilities	1,033.8	1,038.9
Equity:
Preferred stock, $1.00 par value, authorized 250,000 shares; none issued
Common stock, $1.00 par value, authorized 100,000,000 shares; issued 48,750,786 shares at cost	48.8	48.8
Capital surplus	785.6	789.7
Retained earnings	1,197.2	1,157.1
Treasury stock, x,xxx,xxx and 8,871,272 shares at cost, respectively	(286.0)	(287.9)
Accumulated other comprehensive loss	(3.2)	(3.9)
Total equity	1,742.4	1,703.8
Total liabilities and equity	$ 3,426.9	$ 3,355.9