Recent Updates — AIR

AAR Corp has entered into a definitive agreement to acquire a controlling 65% interest in MRO Holdings, Inc., at an implied enterprise value of $4.0 billion. The transaction involves approximately $780 million in upfront equity consideration issued to current shareholders and roughly $230 million via a PIPE investment. AAR will finance the acquisition through a combination of new debt and equity issuance, targeting pro forma net leverage of approximately 3.8x at closing with a path toward 2.0x–2.5x in the medium term. The deal is expected to close in fiscal Q3 ending February 2027, subject to regulatory approvals. AAR Corp operates as an independent provider of aviation aftermarket services, including parts distribution, repair, and software solutions.

AAR CORP entered into Amendment No. 3 to its existing revolving credit facility, increasing aggregate lender commitments by $550 million to a total of $1.375 billion. The amendment extends the maturity date from December 2027 to October 2031 and adjusts financial covenants, including raising the maximum leverage ratio to 5.50 to 1.00 and lowering the minimum interest coverage ratio to 2.00 to 1.00. The facility remains unsecured with variable SOFR-based pricing. This financing supports AAR's pending acquisition of a controlling interest in MRO Holdings, Inc., though borrowing availability is not conditioned on that deal closing. AAR CORP operates as a leading global aerospace and defense aftermarket solutions company providing parts supply, repair, engineering, software, and government solutions.

AAR CORP. entered into a Share Purchase Agreement to acquire a 65% controlling interest in MRO Holdings for an implied enterprise value of $4.0 billion. The consideration includes approximately $1.82 billion in cash and 5,783,894 shares of Series A Convertible Preferred Stock valued at $780.8 million. Concurrently, the Company closed a PIPE offering of 2,215,791 common shares at $104.50 per share for approximately $231.6 million in gross proceeds to fund part of the transaction. The acquisition is expected to close in fiscal Q3 ending February 2027, subject to regulatory approvals and customary conditions. AAR operates as a global aerospace and defense aftermarket solutions company providing parts supply, repair engineering, software, and government solutions.

AAR CORP reported first quarter fiscal year 2027 results for the period ended August 31, 2026, alongside announcing a definitive agreement to acquire a controlling interest in MRO Holdings. Consolidated sales increased 24% to $918 million, driven by strong demand across Parts Supply and Repair, Engineering & Software segments. GAAP diluted EPS was $1.00, while adjusted diluted EPS rose 38% to $1.49. Adjusted EBITDA grew 34% to $117 million with an expanded margin of 12.7%. Net income reached $40.1 million, and net leverage decreased to 1.81x. The company provided second quarter sales growth guidance of 14%-16% and full-year low-teens growth, excluding Legacy Commercial Programs impacts. AAR is a global aerospace and defense aftermarket solutions company providing parts supply, repair, engineering, software, and government solutions.

AAR CORP. approved a special long-term performance incentive grant of 161,500 shares of performance-based restricted stock to Chairman, CEO, and President John M. Holmes, with a targeted grant date fair value of approximately $15 million. The award is tied to stock price hurdles of $175, $200, and $250 per share, with a five-year vesting period ending July 31, 2031. AAR CORP. is an aviation aftermarket platform provider.