AAR Corp.

Hello, and thank you for standing by. Welcome to AAR Corp third quarter fiscal year 2026 earnings conference call. At this time, all participants are on 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to Chris Tillett, Vice President, Investor Relations. You may begin.

Good afternoon, everyone, and welcome to AAR's fiscal year 2026 third quarter earnings conference call. We're joined today by John Holmes, Chairman, President, and Chief Executive Officer, and Dylan Wollin, Chief Financial Officer. The presentation we are sharing today as part of this webcast can be found under the Investor Relations section on our corporate websites. Comments made during the call will 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 31, 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. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are set forth in the company's earnings release and slides. At this time, I would like to turn the call over to John Holtz.

Great. Thank you, Chris. And welcome, everyone, to our third quarter fiscal year 2026 earnings conference call. I'll begin with key messages for the quarter on slide three. First, this was another outstanding quarter for AAR. Our focused business model is driving growth that is delivering durable results in both commercial and government end markets, as evidenced by our third quarter performance. Second, we continued our momentum in the quarter and delivered 25% growth in total sales, 31% growth in adjusted operating income, and 26% growth in both adjusted EBITDA and adjusted earnings per share for the period. We saw growth across each of our parts repair and software platform activities in the quarter. Total sales increase included 14% organic adjusted sales growth, led by 36% organic growth in our new parts distribution activities. Third, we are continuing to execute across key initiatives advancing our strategic priorities. For example, in repair and engineering, the integration of HACO Americas is ahead of schedule and our hanger expansions are on track with Oklahoma City now complete and Miami expected to be operational later this summer. In parts supply, ADI is performing above expectations, and we continue to drive outsized growth in our new parts distribution activities. Also, our track software platform continues to gain momentum by growing its base of recurring revenue with new and existing customers. Finally, we are carefully managing our balance sheet to preserve strategic flexibility as we maintain our disciplined approach to capital allocations. We ended the third quarter with net leverage within our target range, supported by our strong operating cash flow in the period. Before I go to slide four, I would like to welcome Dylan Wolin back to AAR as the company's new chief financial officer. Dylan was with the company from 2017 to 2024. He was instrumental in developing the strategy we are executing today. I would also like to thank Sarah Flanagan for doing an outstanding job as our interim CFO over the last few months. I'm proud to be part of such a strong team. I also want to talk for a moment about the current environment. We are closely monitoring the events in the Middle East that have been in constant contact with our customers. As many of our customers have said publicly, fundamental demand for air travel remains strong with bookings at record levels even since the start of the conflict. While some customers may make modest capacity adjustments, at this time we are not anticipating any meaningful impact to their maintenance schedules or need for parts. They continue to tell us they are preparing for a busy summer travel season, and we are planning accordingly. What's more, AAR is competitively positioned as an independent, value-added aftermarket solution provider, which makes us a compelling solution for our customers as they look to reduce spending when fuel costs rise. Additionally, one of the benefits of AAR's portfolio is our exposure to government and defense end markets. Over the decades, this balance between government and commercial markets has been a real advantage. On that note, the government side of our business is benefiting from a general need for increased operational readiness in the U.S. military. Our government customers today comprise roughly 30% of our sales and are represented across all segments. AAR has a long history of working on some of the most critical aircraft for the U.S. military, including the C-17, the P-8, the C-40, the F-16, and the C-130, and it was programs like these that helped drive 19% increase in government sales this quarter and contributed to the strength of our results. Now on to slide four. We achieved 36% organic growth in new parts distribution, driven by our two-way exclusive distribution model. Volume and government distribution have been increasing steadily over the last year, and this quarter represented a 55% organic increase over this period last year. Also in parts supply, our acquisition of ADI outpaced expectations for the second quarter in a row, and ADI's adjusted margins were accretive to the company in the quarter. In repair and engineering, our Oklahoma City facility completed its hangar capacity expansion in the quarter and began aircraft inductions in early March. We expect first revenues from these maintenance lines in our fourth quarter. Our component MRO business saw key wins from major U.S. and international carriers for expanded scopes of work, And this is a testament to our strategy to utilize our whole portfolio to drive more business to the higher margin component MRO activity. Our HACO Americas integration is progressing ahead of schedule, and we expect the full integration process to be complete in the earlier part of the 12- to 18-month window we provided previously. We also expect our acquisition of Aircraft Reconfig Technologies, or ART, to close in the fourth quarter. In our software activities, TRAX had another record quarter as a result of growth with the addition of new customers as well as existing customer upgrades. TRAX's agreement with Delta continues to ramp. Already, TRAX has been deployed to more than 2,000 users across Delta, and we expect this to increase to more than 6,000 users in the coming months. Our expeditionary services business was recently awarded $450 million in multi-year government contracts to provide specialized pallets to forward deployed military units as a result of increased operational tempo overseas. We are pleased with our results this quarter and the growth that we saw across the company. And I would now like to turn the call over to Dylan to go through the financial results in more detail.