{"success":true,"data":{"pressRelease":{"id":"24028","rtpr_id":"nPn4wTjYfa","ticker":"AIR","exchange":"NYSE","all_tickers":["AIR"],"title":"AAR announces segment realignment and wind-down of Commercial Programs business","author":"PR Newswire","published_at":"2026-05-06T20:05:01.785Z","article_body":"AAR announces segment realignment and wind-down of Commercial Programs business\n\nPR Newswire\n\nWOOD DALE, Ill., May 6, 2026\n\nWOOD DALE, Ill., May 6, 2026 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading\nprovider of aviation services to commercial and government operators, MROs,\nand OEMs, announced today that beginning with the fourth quarter of fiscal\nyear 2026, the Company will report under a new structure using the following\nfour operating segments:\n\n(https://mma.prnewswire.com/media/2305023/AAR_Logo_v1.html)\n\n * Parts Supply remains unchanged from the prior structure, primarily consisting\nof new parts Distribution and used serviceable material.\n * Repair, Engineering, and Software primarily consists of maintenance, repair,\nand overhaul (MRO) services across airframe (Airframe MRO) and components\n(Component MRO), and AAR's software platforms, including Trax, Aerostrat, and\nAirvoyant.\n * Government Solutions primarily consists of AAR's fleet management and\noperations of customer-owned aircraft and performance-based logistics programs\n(Government Programs), and AAR's Mobility Systems activity previously reported\nas Expeditionary Services.\n * Legacy Commercial Programs primarily consists of asset-heavy flight hour-based\ncomponent repair programs for commercial airlines, previously reported within\nIntegrated Solutions.\nAAR also announced today that it intends to wind down its Legacy Commercial\nPrograms business. For the last twelve months ended February 28, 2026, the\nLegacy Commercial Programs business contributed sales of $252.4 million, a\nGAAP operating loss of ($0.2) million, and adjusted operating income of $5.0\nmillion. Net assets of the Legacy Commercial Programs segment as of February\n28, 2026 were approximately $160 million.\n\n\"Our segment realignment reflects AAR's continued focus on growth, margin\nexpansion, and additional cash flow generation,\" said John M. Holmes, AAR's\nChairman, President and CEO. \"Legacy Commercial Programs requires significant\nasset pools and no longer meets our capital return thresholds. We anticipate\nthat the wind-down of this segment will take approximately three to four\nyears. During that timeframe, we expect the results will include periodic\ngains as we divest the assets that support these programs. We also plan to\nredeploy the talented team supporting these activities to other AAR growth\ninitiatives. Once complete, we believe the wind-down of Legacy Commercial\nPrograms will result in a more simplified business model with higher margins\nand improved returns on capital.\"\n\nThe Company's guidance for the fourth quarter and fiscal year 2026, ending May\n31, 2026, is unchanged and not affected by the segment realignment or plans to\nwind down its Legacy Commercial Programs business.\n\nConcurrently with this press release, the Company has furnished a Current\nReport on Form 8-K with a recast of comparable prior year segment financial\ninformation for fiscal years 2024 and 2025 and for certain previously reported\nquarters in fiscal years 2025 and 2026, along with a summary presentation that\nis posted on the Investors section of AAR's corporate website. The Company's\nconsolidated balance sheets, income statements, and cash flows are not\naffected.\n\nAbout AAR\nAAR is a global aerospace and defense aftermarket solutions company with\noperations in over 20 countries. Headquartered in the Chicago area, AAR\nsupports commercial and government customers through four operating segments:\nParts Supply; Repair, Engineering, and Software; Government Solutions; and\nLegacy Commercial Programs. Additional information can be found at aarcorp.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4681426-1&h=2798641784&u=https%3A%2F%2Fwww.aarcorp.com%2F&a=aarcorp.com)\n.\n This press release may contain certain statements relating to future results,\n which are forward-looking statements as that term is defined in the Private\n Securities Litigation Reform Act of 1995, reflecting management's expectations\n about future conditions, including the wind-down of the Company's Legacy\n Commercial Programs business and anticipated benefits. Forward-looking\n statements may also be identified because they contain words such as\n ''anticipate,'' ''believe,'' ''continue,'' ''could,'' ''estimate,''\n ''expect,'' ''intend,'' ''likely,'' ''may,'' ''might,'' ''plan,''\n ''potential,'' ''predict,'' ''project,'' ''seek,'' ''should,'' ''target,''\n ''will,'' ''would,'' or similar expressions and the negatives of those terms.\n These forward-looking statements are based on beliefs of management, as well\n as assumptions and estimates based on information currently available to\n management and are subject to certain risks and uncertainties that could cause\n actual results to differ materially from historical results or those\n anticipated. For a discussion of these and other risks and uncertainties,\n refer to \"Risk Factors\" in AAR CORP.'s most recent Annual Report on Form 10-K\n and subsequent Quarterly Reports on Form 10-Q. Should one or more of these\n risks or uncertainties materialize adversely, or should underlying assumptions\n or estimates prove incorrect, actual results may vary materially from those\n described. These events and uncertainties are difficult or impossible to\n predict accurately and many are beyond management's control. Management\n assumes no obligation to update any forward-looking statements to reflect\n events or circumstances after the date of such statements or to reflect the\n occurrence of anticipated or unanticipated events, except as required by law.\n\nContact:\nChris Tillett – Investor Relations\n+1-630-227-5830\ninvestors@aarcorp.com (mailto:investors@aarcorp.com)\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/aar-announces-segment-realignment-and-wind-down-of-commercial-programs-business-302764562.html\n(https://www.prnewswire.com/news-releases/aar-announces-segment-realignment-and-wind-down-of-commercial-programs-business-302764562.html)\n\nSOURCE AAR CORP.\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/2305023/AAR_Logo_v1.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn4wTjYfa","title":"AAR announces segment realignment and wind-down of Commercial Programs business","author":"PR Newswire","ticker":"AIR","created":"2026-05-06T20:05:01.785Z","tickers":["AIR"],"exchange":"NYSE","article_body":"AAR announces segment realignment and wind-down of Commercial Programs business\n\nPR Newswire\n\nWOOD DALE, Ill., May 6, 2026\n\nWOOD DALE, Ill., May 6, 2026 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading\nprovider of aviation services to commercial and government operators, MROs,\nand OEMs, announced today that beginning with the fourth quarter of fiscal\nyear 2026, the Company will report under a new structure using the following\nfour operating segments:\n\n(https://mma.prnewswire.com/media/2305023/AAR_Logo_v1.html)\n\n * Parts Supply remains unchanged from the prior structure, primarily consisting\nof new parts Distribution and used serviceable material.\n * Repair, Engineering, and Software primarily consists of maintenance, repair,\nand overhaul (MRO) services across airframe (Airframe MRO) and components\n(Component MRO), and AAR's software platforms, including Trax, Aerostrat, and\nAirvoyant.\n * Government Solutions primarily consists of AAR's fleet management and\noperations of customer-owned aircraft and performance-based logistics programs\n(Government Programs), and AAR's Mobility Systems activity previously reported\nas Expeditionary Services.\n * Legacy Commercial Programs primarily consists of asset-heavy flight hour-based\ncomponent repair programs for commercial airlines, previously reported within\nIntegrated Solutions.\nAAR also announced today that it intends to wind down its Legacy Commercial\nPrograms business. For the last twelve months ended February 28, 2026, the\nLegacy Commercial Programs business contributed sales of $252.4 million, a\nGAAP operating loss of ($0.2) million, and adjusted operating income of $5.0\nmillion. Net assets of the Legacy Commercial Programs segment as of February\n28, 2026 were approximately $160 million.\n\n\"Our segment realignment reflects AAR's continued focus on growth, margin\nexpansion, and additional cash flow generation,\" said John M. Holmes, AAR's\nChairman, President and CEO. \"Legacy Commercial Programs requires significant\nasset pools and no longer meets our capital return thresholds. We anticipate\nthat the wind-down of this segment will take approximately three to four\nyears. During that timeframe, we expect the results will include periodic\ngains as we divest the assets that support these programs. We also plan to\nredeploy the talented team supporting these activities to other AAR growth\ninitiatives. Once complete, we believe the wind-down of Legacy Commercial\nPrograms will result in a more simplified business model with higher margins\nand improved returns on capital.\"\n\nThe Company's guidance for the fourth quarter and fiscal year 2026, ending May\n31, 2026, is unchanged and not affected by the segment realignment or plans to\nwind down its Legacy Commercial Programs business.\n\nConcurrently with this press release, the Company has furnished a Current\nReport on Form 8-K with a recast of comparable prior year segment financial\ninformation for fiscal years 2024 and 2025 and for certain previously reported\nquarters in fiscal years 2025 and 2026, along with a summary presentation that\nis posted on the Investors section of AAR's corporate website. The Company's\nconsolidated balance sheets, income statements, and cash flows are not\naffected.\n\nAbout AAR\nAAR is a global aerospace and defense aftermarket solutions company with\noperations in over 20 countries. Headquartered in the Chicago area, AAR\nsupports commercial and government customers through four operating segments:\nParts Supply; Repair, Engineering, and Software; Government Solutions; and\nLegacy Commercial Programs. Additional information can be found at aarcorp.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4681426-1&h=2798641784&u=https%3A%2F%2Fwww.aarcorp.com%2F&a=aarcorp.com)\n.\n This press release may contain certain statements relating to future results,\n which are forward-looking statements as that term is defined in the Private\n Securities Litigation Reform Act of 1995, reflecting management's expectations\n about future conditions, including the wind-down of the Company's Legacy\n Commercial Programs business and anticipated benefits. Forward-looking\n statements may also be identified because they contain words such as\n ''anticipate,'' ''believe,'' ''continue,'' ''could,'' ''estimate,''\n ''expect,'' ''intend,'' ''likely,'' ''may,'' ''might,'' ''plan,''\n ''potential,'' ''predict,'' ''project,'' ''seek,'' ''should,'' ''target,''\n ''will,'' ''would,'' or similar expressions and the negatives of those terms.\n These forward-looking statements are based on beliefs of management, as well\n as assumptions and estimates based on information currently available to\n management and are subject to certain risks and uncertainties that could cause\n actual results to differ materially from historical results or those\n anticipated. For a discussion of these and other risks and uncertainties,\n refer to \"Risk Factors\" in AAR CORP.'s most recent Annual Report on Form 10-K\n and subsequent Quarterly Reports on Form 10-Q. Should one or more of these\n risks or uncertainties materialize adversely, or should underlying assumptions\n or estimates prove incorrect, actual results may vary materially from those\n described. These events and uncertainties are difficult or impossible to\n predict accurately and many are beyond management's control. Management\n assumes no obligation to update any forward-looking statements to reflect\n events or circumstances after the date of such statements or to reflect the\n occurrence of anticipated or unanticipated events, except as required by law.\n\nContact:\nChris Tillett – Investor Relations\n+1-630-227-5830\ninvestors@aarcorp.com (mailto:investors@aarcorp.com)\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/aar-announces-segment-realignment-and-wind-down-of-commercial-programs-business-302764562.html\n(https://www.prnewswire.com/news-releases/aar-announces-segment-realignment-and-wind-down-of-commercial-programs-business-302764562.html)\n\nSOURCE AAR CORP.\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/2305023/AAR_Logo_v1.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-05-06T20:05:01.873160706Z","server_sent_at_ms":1778097901873},"received_at":"2026-05-06T20:05:01.937Z","source_url":null},"analysis":{"id":"18874","press_release_id":"24028","analysis_json":{"industry":{"label":"Capital Goods","sector":"Industrials"},"redFlags":["Wind-down of business segment representing $252.4M in annual sales","Long 3-4 year timeline to complete the wind-down creates execution risk"],"eventType":"other","narrative":"AAR announced a segment realignment effective for the fourth quarter of fiscal 2026, introducing a four-segment reporting structure that isolates the Legacy Commercial Programs business.\n\nThe company intends to wind down the Legacy Commercial Programs segment, which generated $252.4 million in sales over the last twelve months but required significant asset holdings that no longer meet capital return thresholds.\n\nManagement expects the wind-down process to take three to four years, aiming to simplify the business model and improve returns on capital while redeploying talent to growth initiatives.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"AAR restructures to exit low-margin legacy segment, prioritizing capital efficiency over top-line growth."},"keyFigures":{"customDimensions":{"wind_down_timeline_years":"3-4","legacy_commercial_programs_sales_ltm":252400000,"legacy_commercial_programs_net_assets":160000000,"legacy_commercial_programs_adj_operating_income_ltm":5000000}},"quotedText":"Legacy Commercial Programs requires significant asset pools and no longer meets our capital return thresholds.","namedEntities":{"people":[{"name":"John M. Holmes","role":"Chairman, President and CEO"},{"name":"Chris Tillett","role":"Investor Relations"}],"products":["Trax","Aerostrat","Airvoyant"],"companies":[{"name":"AAR CORP.","ticker":"AIR"}],"dollarAmounts":[{"amount":"$252.4 million","context":"Legacy Commercial Programs sales (LTM)"},{"amount":"$0.2 million","context":"Legacy Commercial Programs GAAP operating loss (LTM)"},{"amount":"$5.0 million","context":"Legacy Commercial Programs adjusted operating income (LTM)"},{"amount":"$160 million","context":"Legacy Commercial Programs net assets"}]},"materialImpact":{"score":3,"reasoning":"Significant strategic restructuring involving the wind-down of a $252.4 million revenue segment and $160 million in net assets. The 3-4 year wind-down period represents a major operational shift, although near-term guidance remains unchanged."},"tickerRelevance":{"others":[],"primary":"AIR"},"globalImportance":25,"audienceRelevance":15,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"strategic_restructuring","sectorWeight":"industrials"}},"event_type":"other","event_type_secondary":null,"sentiment":"mixed","material_impact_score":3,"narrative":"AAR announced a segment realignment effective for the fourth quarter of fiscal 2026, introducing a four-segment reporting structure that isolates the Legacy Commercial Programs business.\n\nThe company intends to wind down the Legacy Commercial Programs segment, which generated $252.4 million in sales over the last twelve months but required significant asset holdings that no longer meet capital return thresholds.\n\nManagement expects the wind-down process to take three to four years, aiming to simplify the business model and improve returns on capital while redeploying talent to growth initiatives.","key_figures":{"customDimensions":{"wind_down_timeline_years":"3-4","legacy_commercial_programs_sales_ltm":252400000,"legacy_commercial_programs_net_assets":160000000,"legacy_commercial_programs_adj_operating_income_ltm":5000000}},"named_entities":{"people":[{"name":"John M. Holmes","role":"Chairman, President and CEO"},{"name":"Chris Tillett","role":"Investor Relations"}],"products":["Trax","Aerostrat","Airvoyant"],"companies":[{"name":"AAR CORP.","ticker":"AIR"}],"dollarAmounts":[{"amount":"$252.4 million","context":"Legacy Commercial Programs sales (LTM)"},{"amount":"$0.2 million","context":"Legacy Commercial Programs GAAP operating loss (LTM)"},{"amount":"$5.0 million","context":"Legacy Commercial Programs adjusted operating income (LTM)"},{"amount":"$160 million","context":"Legacy Commercial Programs net assets"}]},"model_name":"glm-4.7","prompt_hash":"sha256:6c7fa2f5e3b62e83","schema_hash":"sha256:ee8f711bc9bfba0d","created_at":"2026-05-07T14:06:51.627Z","global_importance":25,"audience_relevance":15,"importance_components":{"tickerTier":"mid-cap","eventGravity":"strategic_restructuring","sectorWeight":"industrials"}},"durationMs":null,"modelName":"glm-4.7"}}