AIR · 10-K filed 22 Jul 2026 · year to 31 May 2026

AAR

26 named things its latest annual report says its results depend on, each in the company's own words. 16 of them are also named by other companies we've read.

Read the filing on SEC.gov ↗

Customers

U.S. government

earns from · $787.8 million (23.8% of consolidated sales)named as a risk

Our sales to branches, agencies and departments of the U.S. government and its contractors were $787.8 million (23.8% of consolidated sales) in fiscal 2026 compared to $687.6 million (24.7% of consolidated sales) in fiscal 2025 (See Note 15 of Notes to Consolidated Financial Statements).Risk factors (Item 1A)

Also named by ADI, APH, ASTS, ATI, AVAV, AWK, BA, BWXT and 46 more

Commercial airlines

earns from · $2,384.1 million (72.1% of consolidated sales)named as a risk

Our sales to commercial customers, including major airlines and related OEM suppliers, were $2,384.1 million (72.1% of consolidated sales) in fiscal 2026.Risk factors (Item 1A)

Also named by BA, EXPD, VSAT

Foreign customers

earns from · approximately 34.3% of our consolidated salesnamed as a risk

We market our products and services globally, with approximately 34.3% of our consolidated sales in fiscal 2026 derived from sales to foreign customers (See Note 15 of Notes to Consolidated Financial Statements).Risk factors (Item 1A)

Also named by DJCO, HEI, TDG

U.S. Department of State

earns from · $70 million in annual revenuenamed as a risk

For example, in April 2025, the White House’s Office of Management and Budget proposed to reduce the DoS’s budget by nearly 50%, resulting in the closing of a number of overseas diplomatic missions and the reduction of diplomatic staff, which has negatively impacted the available funding for our DoS contracts by $70 million in annual revenue for those contracts.Risk factors (Item 1A)

Also named by RKLB

Global government and defense customers

earns from · $923.9 million (27.9% of consolidated sales)named as a risk

Sales to global government and defense customers (including sales to branches, agencies, and departments of the U.S. government) were $923.9 million (27.9% of consolidated sales), $804.3 million (28.9% of consolidated sales), and $681.0 million (29.4% of consolidated sales) in fiscal 2026, 2025, and 2024, respectively.Business (Item 1)

U.S. Department of War

earns fromnamed as a risk

The majority of our U.S. government sales is for products and services supporting DoW aircraft sustainment, mobility systems, and the DoS flight operations and is, therefore, subject to changes in defense and other governmental agency funding and spending.Risk factors (Item 1A)

Also named by BA, CACI, CDRE, CVLG, GD, HII, LHX, MP and 4 more

Suppliers

OEM suppliers

depends on · over 20 leading OEMsnamed as a risk

We are an authorized distributor for more than 30 product lines, which include parts from over 300 Federal Supply Class codes sourced from over 20 leading OEMs.Business (Item 1)

Other companies

Legacy Commercial Programs exit

approximately 5% of our salesnamed as a risk

We also expect to impair the goodwill included in our Legacy Commercial Programs segment as its operations are wound down over the next three to four years.Risk factors (Item 1A)

HAECO Americas

$131.1 million

In addition, our recent HAECO Americas acquisition contributed sales of $131.1 million.Business (Item 1)

American Distributors Holding Co. (ADI)

$82.2 million

Consolidated sales to commercial customers increased $408.0 million, or 20.6%, over the prior year primarily due to strong demand and volume growth in our new parts Distribution activities, including from our recent ADI acquisition, which contributed sales of $82.2 million.Business (Item 1)

Boeing

named as a risk

The commercial aviation industry is historically cyclical and has been negatively affected in the past, and could be negatively affected in future periods, by geopolitical events, ongoing conflicts and wars (including the ongoing Russia-Ukraine conflict and Middle East conflicts), trade wars, the imposition or increase in tariffs or retaliatory countermeasures or changes in trade policies, terrorism, weather-related events, natural disasters, pandemics, disruption to fuel and oil production and supply shortages, high fuel and oil prices, other supply chain disruptions, labor issues and strikes (such as the union work stoppage at Boeing), environmental concerns (including climate change), lack of capital, cost inflation, high interest rates, and weak economic conditions, among other things.Risk factors (Item 1A)

Also named by ALK, BRK/B, CW, GNTX, RBC, RTX, TDG, TDY

Places

Miami, Florida

operates in · 114,000 square foot facilitynamed as a risk

We must also manage any permitting delays that may arise in connection with the expansion of our facility in Miami, Florida and any other issues that may arise in connection with the construction process.Risk factors (Item 1A)

Also named by SEB

Oklahoma City, Oklahoma

operates in · 80,000 square foot facility

To meet growing customer demand, we recently expanded our Oklahoma City operations with the construction of a new 80,000 square foot facility with three bays and warehouse space adjacent to our existing hangar.Business (Item 1)

Also named by EXE

Commodities and inputs

Jet fuel

exposed to its pricenamed as a risk

In addition, recent increases in energy costs and the price of fuel to the airlines resulting from conflicts in the Middle East have been placing additional pressure on the operating costs of airlines, which are our largest customers.Risk factors (Item 1A)

Also named by ALK, CG, DAL, FDX, GE, LUV, UPS, WLFC

Steel, aluminum and balsa

depends on

We purchase raw materials for our Government Solutions manufacturing operations, including steel, aluminum, extrusions, balsa, and other necessary supplies from several vendors.Business (Item 1)

Regulators

Federal Aviation Administration (FAA)

subject to · fifteen FAA certificated repair stationsnamed as a risk

If any of our material licenses, certificates, authorizations, or approvals were revoked or suspended by the FAA or equivalent regulatory agencies in other countries, our results of operations and financial condition may be adversely affected.Risk factors (Item 1A)

Also named by ACHR, ALK, AMT, AVAV, BA, BRK/B, CCI, CW and 27 more

European Aviation Safety Agency (EASA)

subject to · twelve

Of the fifteen FAA certificated repair stations, twelve are also European Aviation Safety Agency (“EASA”) and three are also Transport Canada Civil Aviation (“TCCA”) certificated repair stations.Business (Item 1)

Also named by CW, HEI

U.S. Department of Commerce

subject tonamed as a risk

For example, there have been two instances in the current U.S. federal administration where license applications have been placed on hold by the U.S. Department of Commerce (the “DoC”).Risk factors (Item 1A)

Also named by ALAB, AMKR, AXON, DELL, DLTR, ENTG, FSLR, INTC and 9 more

Laws and programs

INL/A WASS contract

earns from · $92.0 millionnamed as a risk

For example, our INL/A WASS contract with the DoS, which contributed sales of $92.0 million in fiscal 2026, is up for renewal in June 2028.Risk factors (Item 1A)

U.S. Foreign Corrupt Practices Act (FCPA)

subject tonamed as a risk

We and certain of our customers operate in a number of jurisdictions that pose a high risk of potential FCPA violations, and we participate in collaborations and relationships with third parties whose corrupt or illegal activities have subjected us and could again potentially subject us to liability under the FCPA or local anti-corruption laws, even if we do not explicitly authorize or have actual knowledge of such activities.Risk factors (Item 1A)

Also named by A, ADBE, ADP, AJG, ALB, AME, AMZN, AOS and 112 more

International Traffic in Arms Regulations (ITAR)

subject tonamed as a risk

United States laws and regulations applicable to us include the Arms Export Control Act, the International Traffic in Arms Regulations (“ITAR”), the Export Administration Regulations (“EAR”), and the trade sanctions laws and regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”).Risk factors (Item 1A)

Also named by ACHR, ADI, ALSN, APH, AVAV, CDRE, CLS, COHR and 29 more

Federal Acquisition Regulation (FAR)

subject tonamed as a risk

For example, FAR is currently under a comprehensive review and re-write, which may impact our business and overall risk once implemented.Risk factors (Item 1A)

Also named by ACN, ALSN, ASTS, AXON, BWXT, CACI, CDRE, CLS and 12 more

Russia sanctions

subject tonamed as a risk

rapidly evolving export controls and financial and economic sanctions imposed on certain industry sectors, including the aviation sector, and parties in Russia by the U.S., the United Kingdom, the European Union and others;Risk factors (Item 1A)

Also named by ACN, BAM, BF/B, CW, DASH, DIS, GIS, KLAC and 5 more

Section 232 investigation on commercial aircraft and jet engines

subject tonamed as a risk

In addition, in May 2025, the Secretary of the DoC initiated an investigation to determine the effects on the national security of imports of commercial aircraft and jet engines, and parts for commercial aircraft and jet engines under Section 232 of the Trade Expansion Act of 1962, as amended.Risk factors (Item 1A)

DoW facility security clearance

subject tonamed as a risk

If for some reason our security clearance is invalidated or terminated, we may not be able to continue to perform our present classified contracts or be able to enter into new classified contracts, which could affect our ability to maintain current business and to compete for and capture new business.Risk factors (Item 1A)

Technology

Airbus, Boeing and Embraer aircraft

earns from

Our Repair, Engineering, and Software segment primarily supports narrow-body Airbus, Boeing and Embraer regional aircraft for customers, as well as U.S. government defense agencies.Business (Item 1)