Filing Flows › AAR (AIR) › Q1 FY26
AAR (AIR) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Sep 23, 2025
AAR (AIR) reported revenue of $740M for the first quarter fiscal 2026 (Q1 FY26), +12% from a year earlier and -2% from the quarter before. Operating margin was 6.4%, net earnings $34.4M (4.7% of revenue).
AAR, Q1 FY26: revenue $740M (+12% year over year), operating margin 6.4%, net earnings $34.4M, operating cash flow −$44.9M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $740M | -2% | +12% |
| Gross profit | $134M | -11% | +14% |
| Operating profit | $47.0M | -1% | +89% |
| Net earnings | $34.4M | +1% | +91% |
| Operating cash flow | −$44.9M | -187% | — |
What changed
Revenue was $739.6M in Q1 FY26, up 12% year over year and down 2% from the previous quarter. Parts Supply was the largest line at 43% of revenue. Parts Supply added $68.1M year over year (up 27%), 87% of the total change. Expeditionary Services declined 13%.
Gross margin was 18.1%, up 0.4 points from a year earlier. Operating profit was $47.0M, a 6.4% margin (up 2.6 points year over year). Of the extra revenue versus a year earlier, 28% reached operating profit, above the 4% margin then. Operating expenses fell 6% while revenue rose 12%. Net earnings were $34.4M, up 91% year over year. The effective tax rate was 26.8%.
Operating cash flow was −$44.9M. Non-cash charges added back $13.8M of depreciation and amortization and $5.3M of share-based compensation. Working capital and other items used $98.4M. Capital expenditures of $8.7M exceeded it, leaving free cash flow of −$53.6M.
Questions
What was AAR's revenue in the first quarter fiscal 2026?
AAR (AIR) reported revenue of $740M for the first quarter fiscal 2026 (Q1 FY26), +12% from a year earlier and -2% from the quarter before.
Was AAR profitable in the first quarter fiscal 2026?
Operating profit was $47.0M (6.4% of revenue) and net earnings $34.4M.
Source: AAR 10-Q on SEC EDGAR.