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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…

AAR revenue by segment, Q1 FY27AAR revenue by segment, Q1 FY27Parts Supply$415MRepair, Engineering, and Software$298MGovernment Solutions$139MLegacy Commercial Programs$66.9M
AAR revenue by quarterAAR revenue by quarter$678MQ3 FY25$754MQ4 FY25$740MQ1 FY26$795MQ2 FY26$845MQ3 FY26$928MQ4 FY26$918MQ1 FY27
AAR: where each dollar of revenue goesAAR: where each dollar of revenue goesCost of revenue81¢Gross profit19¢Operating expenses13¢Operating profit6¢Income tax2¢Net earnings4¢Operating cash flow6¢Free cash flow5¢

Revenue by segment, Q1 FY27

SegmentRevenueShareQ/QY/Y
Parts Supply$415M45.2%—+31%
Repair, Engineering, and Software$298M32.4%—+31%
Government Solutions$139M15.1%—+4%
Legacy Commercial Programs$66.9M7.3%—+9%

Where each dollar of revenue goes

LineQ1 FY27% of revenue
Revenue$918M100.0%
Cost of revenue$742M80.8%
Gross profit$176M19.2%
Operating expenses$121M13.2%
Operating profit$55.4M6.0%
Income tax$15.3M1.7%
Net earnings$40.1M4.4%
Operating cash flow$55.8M6.1%
Free cash flow$44.0M4.8%

Revenue, quarter by quarter

QuarterRevenueY/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%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.