AAR Corp.

Hello, and thank you for standing by. Welcome to AAR First Quarter Fiscal Year 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press Star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star 1-1 again.

will now like to hand the conference over to management you may begin good afternoon everyone and welcome to aar's fiscal year 2026 first quarter earnings call we're joined today by john holmes chairman president and chief executive officer and sean dillon chief financial officer the presentation material we are sharing today as part of this webcast can also be found under the investor relations section on our corporate website before we begin I'd like to remind you that the comments made during the call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly, these statements are no guarantee of future performance. These risks and uncertainties are discussed in the company's earnings release and the risk factor section of the company's annual report on Form 10-K for the fiscal year ended May 31st, 2025. In providing the forward-looking statements, the company assumes no obligation to provide updates to reflect future circumstances or anticipated or unanticipated events. Certain non-GAAP financial information will be discussed during the call today. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the company's earnings release and slides. A transcript of this conference call will be available shortly after the webcast on AAR's website. At this time, I would like to turn the call over to AAR's Chairman, President and CEO, John Holmes.

Thank you and welcome everyone to our first quarter fiscal year 2026 earnings call. This quarter was a very strong start to the year and we are proud of the results we delivered as we continue to advance the execution of our strategic objectives. We have accompanying information on the slides that will be referenced as I talk through the details of this release. Turning to slide three, there are three key takeaways from our Q1 FY26 that I would like to highlight today. First, we delivered significant top line growth with higher profitability. We are particularly proud of the 17% organic adjusted sales growth that we drove in the quarter. Second, we continue to win and grow in new parts distribution. This has been our fastest growing activity, averaging more than 20% organic growth in each of the last four years. Our exclusive distribution model resonates with OEMs and is helping to drive continued market share gains. Third, our track software solution has continued its momentum on the back of the major win we announced with Delta Airlines in June. Additionally, we further enhanced our software capabilities with the acquisition of Aerostrat, which we completed in the quarter. Turning now to slide four, I will discuss our strategy execution in more detail. We are executing across our strategic objectives to drive growth through market share capture and new business, improve margin through cost efficiency and synergy realization, increase the intellectual property in our offerings through software and IP investments, and to continue our disciplined portfolio management. Starting with share gains and new business wins in the quarter. In our parts supply segment, we expanded our new parts distribution capabilities through our multi-year exclusive distribution agreement with Amsafe Bridgeport, a Transound company, becoming the exclusive KC-46 and C-40 platform distributor to the global defense and military aftermarket. This win once again demonstrates the strength of our new parts distribution capabilities across both the commercial and government markets. Also in repair and engineering, we continue to make progress on our Oklahoma City and Miami airframe MRO expansions. Both expansions are progressing well and will come online in calendar 2026, adding 15% capacity to our network. Moving to cost efficiency, we are continuing the rollout of our paperless hanger solution, which drove increased throughput, leading to another quarter of sales growth out of the same hanger footprint. We have completed approximately 60% of the paperless rollout to date. In component services, now that we have substantially completed the product support integration, Our focus is to drive incremental volume through the acquired sites, which will lead to additional margin expansion. In the quarter, we also maintain consistent cost discipline, reducing SG&A year over year. In our software and IP-enabled offerings, we continue to have success in the market with our TRAX software solutions, particularly after TRAX's selection by Delta validated its ability to scale in support of the world's largest airlines. We don't announce all of TRAX's wins, but this quarter we're proud to say that JetBlue, a long-time Trax customer, upgraded to e-mobility and our cloud hosting solution. Also during the quarter, we acquired Aerostrat, a maintenance planning software provider which immediately expands the reach of our software offerings and the enterprise resource planning system capabilities of our Trax software solution. Aerostrat brings exciting opportunities for growth with the potential for further integration and scope expansion among existing Trax customers. We are proud that this was another quarter of both strong execution and new business capture, and with that, I'll turn it over to Sean to discuss the results in more detail.