AAR Corp., a Chicago-area aerospace and defense aftermarket provider, announced plans to wind down its Legacy Commercial Programs business, which generated $252.4 million in sales over the 12 months ended February 28, 2026.
The segment, focused on asset-heavy flight hour-based component repair programs for commercial airlines, recorded a GAAP operating loss of $0.2 million and adjusted operating income of $5.0 million in that period. Net assets stood at approximately $160 million as of February 28.
Effective with the fourth quarter of fiscal year 2026, AAR will report results under four operating segments: Parts Supply, covering new parts distribution and used serviceable material; Repair, Engineering, and Software, including airframe and component MRO plus software platforms like Trax, Aerostrat, and Airvoyant; Government Solutions, encompassing fleet management, performance-based logistics, and mobility systems; and Legacy Commercial Programs.
According to AAR Chairman, President, and CEO John M. Holmes, the business requires significant asset pools and no longer meets capital return thresholds. The wind-down is expected to take three to four years, with periodic gains from asset divestitures. The company plans to reassign the segment’s team to other growth areas. Fiscal 2026 guidance remains unchanged.