Filing Flows › AAR (AIR) › How it makes money
How AAR (AIR) makes money
AAR (AIR) made $918M of revenue in the first quarter fiscal 2027 (Q1 FY27), +24% from a year earlier. Parts Supply brought in $415M (45%); Repair, Engineering, and Software brought in $298M (32%); Government Solutions brought in $139M (15%). Of every dollar of revenue, 19¢ was left as gross profit, 6¢ was left as operating profit, 4¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q1 FY27
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Parts Supply | $415M | 45.2% | — | +31% |
| Repair, Engineering, and Software | $298M | 32.4% | — | +31% |
| Government Solutions | $139M | 15.1% | — | +4% |
| Legacy Commercial Programs | $66.9M | 7.3% | — | +9% |
Where each dollar of revenue goes
| Line | Q1 FY27 | % of revenue |
|---|---|---|
| Revenue | $918M | 100.0% |
| Cost of revenue | $742M | 80.8% |
| Gross profit | $176M | 19.2% |
| Operating expenses | $121M | 13.2% |
| Operating profit | $55.4M | 6.0% |
| Income tax | $15.3M | 1.7% |
| Net earnings | $40.1M | 4.4% |
| Operating cash flow | $55.8M | 6.1% |
| Free cash flow | $44.0M | 4.8% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q1 FY27 | $918M | +24% |
| Q4 FY26 | $928M | +23% |
| Q3 FY26 | $845M | +25% |
| Q2 FY26 | $795M | +16% |
| Q1 FY26 | $740M | +12% |
| Q4 FY25 | $754M | +15% |
| Q3 FY25 | $678M | +20% |
From AAR's 10-Q filed Sep 29, 2026 (on EDGAR).
Questions
How does AAR make money?
AAR (AIR) made $918M of revenue in the first quarter fiscal 2027 (Q1 FY27), +24% from a year earlier. Parts Supply brought in $415M (45%); Repair, Engineering, and Software brought in $298M (32%); Government Solutions brought in $139M (15%). Of every dollar of revenue, 19¢ was left as gross profit, 6¢ was left as operating profit, 4¢ was left as net earnings.
What is AAR's biggest business?
Parts Supply: $415M in the first quarter fiscal 2027, 45% of revenue, +31% from a year earlier.
What is AAR's profit margin?
Net earnings were $40.1M, 4.4% of revenue, in the first quarter fiscal 2027; the operating margin was 6.0%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.