Filing Flows › AAR (AIR) › Q2 FY26
AAR (AIR) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Jan 7, 2026
AAR (AIR) reported revenue of $795M for the second quarter fiscal 2026 (Q2 FY26), +16% from a year earlier and +8% from the quarter before. Operating margin was 6.0%, net earnings $34.6M (4.4% of revenue).
AAR, Q2 FY26: revenue $795M (+16% year over year), operating margin 6.0%, net earnings $34.6M, operating cash flow $13.6M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $795M | +8% | +16% |
| Gross profit | $157M | +17% | +22% |
| Operating profit | $48.1M | +2% | — |
| Net earnings | $34.6M | +0.6% | — |
| Operating cash flow | $13.6M | — | -38% |
| Free cash flow | $6.2M | — | -55% |
What changed
Revenue was $795.3M in Q2 FY26, up 16% year over year and up 8% from the previous quarter. Parts Supply was the largest line at 44% of revenue. Parts Supply added $79.9M year over year (up 29%), 73% of the total change.
Gross margin was 19.7%, up 1.0 points from a year earlier. Operating profit was $48.1M, a 6.0% margin (up 9.3 points year over year). Operating expenses fell 28% while revenue rose 16%. The fastest-growing cost line was Other operating costs (+12%). Net earnings were $34.6M. The effective tax rate was 28.1%.
Operating cash flow was $13.6M (down 38% year over year), 39% of net earnings. Non-cash charges added back $17.1M of depreciation and amortization and $4.3M of share-based compensation. Working capital and other items used $42.4M. Capital expenditures of $7.4M left free cash flow of $6.2M.
Questions
What was AAR's revenue in the second quarter fiscal 2026?
AAR (AIR) reported revenue of $795M for the second quarter fiscal 2026 (Q2 FY26), +16% from a year earlier and +8% from the quarter before.
Was AAR profitable in the second quarter fiscal 2026?
Operating profit was $48.1M (6.0% of revenue) and net earnings $34.6M.
Source: AAR 10-Q on SEC EDGAR.