AIR · AAR Corp.

AAR CORP.'s segment realignment reorganizes its Integrated Solutions segment to better align with core operations, resource allocation, and performance assessment by its CODM. The creation of Government Solutions merges government-focused programs with mobility systems, while Repair, Engineering, and Software incorporates the Trax and Airinmar platforms to enhance MRO and digital offerings. Parts Supply remains focused on parts distribution. Legacy Commercial Programs, characterized by asset-heavy power-by-the-hour models, is isolated for wind-down as it fails capital return thresholds, with expected asset divestitures generating periodic gains over 3-4 years and team redeployment to growth areas. Recast unaudited data in Exhibit 99.1 shows diversified revenue streams, with Parts Supply as the largest contributor growing from prior periods. Non-GAAP adjustments remove items like acquisition costs, impairments, and contract terminations to highlight ongoing performance. CEO John M. Holmes emphasized improved margins, ROIC, and business simplification post-wind-down. The disclosure ensures transparency without altering prior consolidated results or current guidance.