AAR (AIR) 10-Q23 Sep 242025 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	3 Months Ended
Document and Entity Information	Aug. 31, 2024 shares
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Aug. 31, 2024
Securities Act File Number	1-6263
Entity Registrant Name	AAR CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2334820
Entity Address, Address Line One	One AAR Place
Entity Address, Address Line Two	1100 N. Wood Dale Road
Entity Address, City or Town	Wood Dale
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60191
City Area Code	630
Local Phone Number	227-2000
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	35,907,686
Entity Central Index Key	0000001750
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--05-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
Amendment Flag	false
Common Stock \| NEW YORK STOCK EXCHANGE, INC. [Member]
Document and Entity Information
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	AIR
Security Exchange Name	NYSE
Common Stock \| NYSE CHICAGO, INC. [Member]
Document and Entity Information
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	AIR
Security Exchange Name	CHX

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Aug. 31, 2024	May 31, 2024
Current assets:
Cash and cash equivalents	$ 49.3	$ 85.8
Restricted cash	13.8	10.3
Accounts receivable, less allowances of $14.3 and $14.1, respectively	310.9	287.2
Contract assets	147.9	123.2
Inventories	748.2	733.1
Rotable assets and equipment on or available for short-term lease	70.4	81.5
Assets of discontinued operations	9	9.9
Prepaid expenses and other current assets	77.4	58.6
Total current assets	1,426.9	1,389.6
Property, plant and equipment, at cost:
Property, plant, and equipment, net of accumulated depreciation of $285.9 and $280.0, respectively	161.5	171.7
Other assets:
Goodwill	552.6	554.8
Intangible assets, net of accumulated amortization of $17.4 and $13.3, respectively	231.3	235.4
Rotable assets supporting long-term programs	170.8	166.3
Operating lease right-of-use assets, net	93.4	96.6
Other non-current assets	146.8	155.6
Total other assets	1,194.9	1,208.7
Total assets	2,783.3	2,770
Current liabilities:
Accounts payable	257.5	238
Accrued liabilities	200.8	219.3
Liabilities of discontinued operations	8.6	9.6
Total current liabilities	466.9	466.9
Long-term debt	981	985.4
Operating lease liabilities	78.9	80.3
Deferred tax liabilities	24	23.9
Other liabilities	22.3	23.7
Total noncurrent liabilities	1,106.2	1,113.3
Equity:
Preferred stock, $1.00 par value, authorized 250,000 shares; none issued
Common stock, $1.00 par value, authorized 100,000,000 shares; issued 45,300,786 shares at cost	45.3	45.3
Capital surplus	490.4	493.9
Retained earnings	974.9	956.9
Treasury stock, 9,393,100 and 9,606,820 shares at cost, respectively	(293.1)	(297.5)
Accumulated other comprehensive loss	(7.3)	(8.8)
Total equity	1,210.2	1,189.8
Total liabilities and equity	$ 2,783.3	$ 2,770

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Aug. 31, 2024	May 31, 2024
Condensed Consolidated Balance Sheets
Accounts receivable, allowances	$ 14.3	$ 14.1
Property, plant, and equipment, net of accumulated depreciation	285.9	280
Intangible assets, net of accumulated amortization	$ 17.4	$ 13.3
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	250,000	250,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	45,300,786	45,300,786
Treasury stock, shares issued	9,393,100	9,606,820

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Sales:
Sales	$ 661.7	$ 549.7
Cost of sales:
Cost	544.5	448.4
Gross profit	117.2	101.3
Provision for credit losses	0.2	0.4
Selling, general, and administrative	75.9	74.7
Earnings (Loss) from joint ventures	2.3	(0.9)
Operating income	43.4	25.3
Pension settlement charge		(26.7)
Losses related to sale and exit of business	(0.1)	(0.7)
Other expense, net	(0.1)
Interest expense	(18.8)	(5.8)
Interest income	0.5	0.4
Income (Loss) before income taxes	24.9	(7.5)
Income tax expense (benefit)	6.9	(6.9)
Net income (loss)	$ 18	$ (0.6)
Earnings (Loss) per share - basic:
Earnings (Loss) per share - basic	$ 0.50	$ (0.02)
Earnings (Loss) per share - diluted:
Earnings (Loss) per share - diluted	$ 0.50	$ (0.02)
Products
Sales:
Sales	$ 376.6	$ 337.5
Cost of sales:
Cost	320.8	273.8
Services
Sales:
Sales	285.1	212.2
Cost of sales:
Cost	$ 223.7	$ 174.6

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Condensed Consolidated Statements of Comprehensive Income
Net income (loss)	$ 18	$ (0.6)
Other comprehensive income, net of tax:
Currency translation adjustments	1.5	0.5
Pension and other post-retirement plans, net of tax		14.9
Other comprehensive income, net of tax	1.5	15.4
Comprehensive income	$ 19.5	$ 14.8

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024
Cash flows used in operating activities:
Net income (loss)	$ 18	$ (0.6)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	14.2	8.4
Stock-based compensation expense	5	4.3
Pension settlement charge		26.7
Loss (Earnings) from joint ventures	(2.3)	0.9
Provision for credit losses	0.2	0.4
Deferred tax benefit		(4.6)
Changes in certain assets and liabilities:
Accounts receivable	(23.7)	(40.5)
Contract assets	(24.5)	(12.3)
Inventories	(14.8)	(39.8)
Prepaid expenses and other current assets	(8.5)	(8.8)
Rotable assets supporting long-term programs	(6.5)	(1)
Accounts payable	19.4	64.2
Accrued and other liabilities	(10.9)	(10)
Deferred revenue on long-term programs	0.1	(4.3)
Other	15.7	(1.5)
Net cash used in operating activities - continuing operations	(18.6)	(18.5)
Net cash used in operating activities - discontinued operations		(0.2)
Net cash used in operating activities	(18.6)	(18.7)
Cash flows used in investing activities:
Property, plant, and equipment expenditures	(7.9)	(9.1)
Acquisition	2.9
Other	(0.3)	(2.5)
Net cash used in investing activities - continuing operations	(5.3)	(11.6)
Cash flows provided by (used in) financing activities:
Short-term borrowings (repayments), net	(5)	35
Stock compensation activity	(4.1)	3.7
Net cash provided by (used in) financing activities - continuing operations	(9.1)	38.7
Increase (Decrease) in cash, cash equivalents, and restricted cash	(33)	8.4
Cash, cash equivalents, and restricted cash at beginning of period	96.1	81.8	$ 81.8
Cash, cash equivalents, and restricted cash at end of period	$ 63.1	$ 90.2	$ 96.1

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions	Common Stock	Capital Surplus	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total
Balance at May. 31, 2023	$ 45.3	$ 484.5	$ 910.6	$ (317.8)	$ (23.5)	$ 1,099.1
Increase (Decrease) in Stockholders' Equity
Net income			(0.6)			(0.6)
Stock option activity		(0.3)		7		6.7
Restricted stock activity		(2.4)		3.7		1.3
Other comprehensive income, net of tax					15.4	15.4
Balance at Aug. 31, 2023	45.3	481.8	910	(307.1)	(8.1)	1,121.9
Balance at May. 31, 2024	45.3	493.9	956.9	(297.5)	(8.8)	1,189.8
Increase (Decrease) in Stockholders' Equity
Net income			18			18
Stock option activity		0.9		0.2		1.1
Restricted stock activity		(4.4)		4.2		(0.2)
Other comprehensive income, net of tax					1.5	1.5
Balance at Aug. 31, 2024	$ 45.3	$ 490.4	$ 974.9	$ (293.1)	$ (7.3)	$ 1,210.2

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Aug. 31, 2024
Basis of Presentation
Basis of Presentation	1. Basis of Presentation AAR CORP. and its subsidiaries are referred to herein collectively as “AAR,” “Company,” “we,” “us,” or “our,” unless the context indicates otherwise. The accompanying Condensed Consolidated Financial Statements include the accounts of AAR and its subsidiaries after elimination of intercompany accounts and transactions. We have prepared these statements without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The Condensed Consolidated Balance Sheet as of May 31, 2024 has been derived from audited financial statements. To prepare the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management has made a number of estimates and assumptions relating to the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Certain information and note disclosures, normally included in comprehensive financial statements prepared in accordance with GAAP, have been condensed or omitted pursuant to such rules and regulations of the SEC. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2024. In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments (which consist only of normal recurring adjustments) necessary to present fairly the Condensed Consolidated Balance Sheet of AAR CORP. and its subsidiaries as of August 31, 2024, the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income for the three-month periods ended August 31, 2024 and 2023, the Condensed Consolidated Statements of Cash Flows for the three-month periods ended August 31, 2024 and 2023, and the Condensed Consolidated Statement of Changes in Equity for the three-month periods ended August 31, 2024 and 2023. The results of operations for such interim periods are not necessarily indicative of the results for the full year.

Acquisitions

Acquisitions	3 Months Ended
Acquisitions	Aug. 31, 2024
Acquisitions
Acquisitions	2. Acquisitions Acquisition of Triumph Group’s Product Support Business On March 1, 2024, we completed the acquisition of Triumph Group, Inc.’s Product Support business (“Product Support”) for an initial purchase price of $725.0 million. The post-closing adjustments for cash, working capital and indebtedness were resolved in the first quarter of fiscal 2025 resulting in a $2.9 million reduction in the purchase price. Product Support is a leading global provider of specialized maintenance, repair, and overhaul (“MRO”) capabilities for critical aircraft components in the commercial and defense markets, providing MRO services for structural components, engine and airframe accessories, interior refurbishment and wheels and brakes. Product Support also designs proprietary designated engineering representative repairs and parts manufacturer approval parts. Product Support’s results are reported within our Repair & Engineering segment. The purchase price was paid at closing and was funded with debt financing. Transaction costs associated with the acquisition of $21.0 million were expensed as incurred within Selling, general and administrative expenses in fiscal 2024. In connection with the acquisition, we secured commitments for a bridge financing facility (the “Bridge Facility”). No amounts were drawn under the Bridge Facility, which was terminated on March 1, 2024 upon securing permanent debt financing and closing the acquisition. We expensed $6.1 million within Interest expense in fiscal 2024 for the fees associated with the Bridge Facility. We accounted for the acquisition using the acquisition method and included the results of Product Support’s operations in our consolidated financial statements from the effective date of the acquisition. The amounts recorded for certain assets and liabilities are preliminary in nature and are subject to adjustment as additional information is obtained about their acquisition date fair values. The allocation of the purchase price is preliminary and will likely change in future periods as fair value estimates of the assets acquired and liabilities assumed are finalized, including those primarily related to working capital, rotable assets, property and equipment, and taxes. The final determination of the fair values will be completed within the one-year measurement period. The preliminary fair value of assets acquired and liabilities assumed is as follows: Accounts receivable $ 42.2 Contract assets 19.1 Inventory 68.3 Rotable assets 21.0 Property & equipment 36.1 Intangible assets 179.0 Investment in joint venture 17.9 Other assets 4.3 Accounts payable (21.6) Other liabilities (18.6) Net assets acquired 347.7 Goodwill 372.3 Purchase price, net of cash acquired $ 720.0 Acquired amortizable intangible assets include customer relationships of $95.7 million and developed technology of $83.3 million which are being amortized over 12.5 years and 20 years, respectively. The goodwill associated with the Product Support acquisition is deductible for tax purposes and is primarily attributable to the benefits we expect to derive from expected synergies including facility rationalization, complementary products and services, cross-selling opportunities, in-sourcing repair services and intangible assets that do not qualify for separate recognition, such as their assembled workforce. As part of our integration activities, we are consolidating our facility footprint which includes closing our Garden City, New York component repair facility and relocating those operations to certain Product Support facilities. We expect to have the transition of the facility’s operations completed in fiscal 2026. During the three-month period ended August 31, 2024, we recognized $1.5 million of integration expenses including facility closure costs, severance and other costs. Acquisition of Trax USA Corp. On March 20, 2023, we acquired the outstanding shares of Trax USA Corp. (“Trax”) for a purchase price of $120.0 million plus contingent consideration of up to $20.0 million based on Trax’s adjusted revenue in calendar years 2023 and 2024. Trax is a leading provider of aircraft MRO and fleet management software supporting a broad spectrum of maintenance activities for a diverse global customer base of airlines and MROs. The purchase price was paid at closing except for $12.0 million which was placed on deposit with an escrow agent to secure potential indemnification obligations and fund post-closing adjustments for working capital and indebtedness. The post-closing adjustments for working capital and indebtedness were finalized in the three-month period ended November 30, 2023 resulting in a purchase price reduction of $1.8 million. The contingent consideration is based on an adjusted revenue target and requires certain of the former owners’ continued employment through December 31, 2024, and is treated as compensation expense within Selling, general and administrative expenses. The adjusted revenue target is based on revenue recognized under U.S. GAAP adjusted for certain events related to deferred revenue, customer commitments, and other adjustments. We recognized compensation expense of $1.5 million and $1.4 million in the three-month periods ended August 31, 2024 and 2023, respectively. We accounted for the acquisition using the acquisition method and included the results of Trax’s operations in our consolidated financial statements from the effective date of the acquisition. Trax’s results are reported within our Integrated Solutions segment. Transaction costs associated with the acquisition of $5.1 million were expensed as incurred. The final fair value of assets acquired and liabilities assumed is as follows: Accounts receivable $ 8.8 Other assets 3.0 Intangible assets 61.7 Deferred revenue (4.1) Deferred tax liabilities (15.1) Other liabilities (4.6) Net assets acquired 49.7 Goodwill 63.8 Purchase price, net of cash acquired $ 113.5 Acquired amortizable intangible assets include customer relationships of $33.6 million and developed technology of $22.0 million which are being amortized over 12 years and 20 years, respectively. Intangible assets also include tradenames of $6.1 million which are indefinite-lived. The goodwill associated with the Trax acquisition is not deductible for tax purposes and is primarily attributable to the benefits we expect to derive from expected synergies including complimentary products and services, cross-selling opportunities and intangible assets that do not qualify for separate recognition, such as their assembled workforce.

Discontinued Operations

Discontinued Operations	3 Months Ended
Discontinued Operations	Aug. 31, 2024
Discontinued Operations
Discontinued Operations	3. Discontinued Operations During the third quarter of fiscal 2018, we decided to pursue the sale of our Contractor-Owned, Contractor-Operated (“COCO”) business previously included in our Expeditionary Services segment. Due to this strategic shift, the assets, liabilities, and results of operations of our COCO business have been reported as discontinued operations for all periods presented. Unless otherwise noted, amounts and disclosures throughout these Notes to Condensed Consolidated Financial Statements relate to our continuing operations. Following the sale of the last operating contract of the COCO business in 2020, our continuing involvement in the COCO business is limited to the lease of certain aircraft which is an obligation of the acquirer of the COCO business. The assets and liabilities of our discontinued operations are primarily comprised of right-of-use (“ROU”) assets and lease-related liabilities.

Revenue Recognition

Revenue Recognition	3 Months Ended
Revenue Recognition	Aug. 31, 2024
Revenue Recognition
Revenue Recognition	4. Revenue Recognition Revenue is measured based on the consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. Our unit of accounting for revenue recognition is a performance obligation included in our customer contracts. A performance obligation reflects the distinct good or service that we must transfer to a customer. At contract inception, we evaluate if the contract should be accounted for as a single performance obligation or if the contract contains multiple performance obligations. In some cases, our contract with the customer is considered one performance obligation as it includes factors such as whether the good or service being provided is significantly integrated with other promises in the contract, whether the service provided significantly modifies or customizes another good or service or whether the good or service is highly interdependent or interrelated. If the contract has more than one performance obligation, we determine the standalone price of each distinct good or service underlying each performance obligation and allocate the transaction price based on their relative standalone selling prices. The transaction price of a contract, which can include both fixed and variable amounts, is allocated to each performance obligation identified. Some contracts contain variable consideration, which could include incremental fees or penalty provisions related to performance. Variable consideration that can be reasonably estimated based on current assumptions and historical information is included in the transaction price at the inception of the contract but limited to the amount that is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Variable consideration that cannot be reasonably estimated is recorded when known. Our performance obligations are satisfied over time as work progresses or at a point in time based on transfer of control of products and services to our customers. The majority of our sales from products typically represent distinct performance obligations and are recognized at a point in time upon transfer of control to the customer, which generally occurs upon shipment. In connection with certain sales of products, we also provide logistics services, which include inventory management, replenishment, and other related services. The price of such services is generally included in the price of the products delivered to the customer, and revenues are recognized upon delivery of the product, at which point the customer has obtained control of the product. We do not account for these services separate from the related product sales as the services are inputs required to fulfill part orders received from customers. For our performance obligations that are satisfied over time, we measure progress in a manner that depicts the performance of transferring control to the customer. As such, we utilize the input method of cost-to-cost to recognize revenue over time as this depicts when control of the promised goods or services are transferred to the customer. Revenue is recognized based on the relationship of actual costs incurred to date to the estimated total cost at completion of the performance obligation. We are required to make certain judgments and estimates, including estimated revenues and costs, as well as inflation and the overall profitability of the arrangement. Key assumptions involved can include customer volume, future labor costs and efficiencies, repair or overhaul costs, overhead costs, and ultimate timing of product delivery. Differences may occur between the judgments and estimates made by management and actual program results. For contracts that are deemed to be loss contracts, we establish forward loss reserves for total estimated costs that are in excess of total estimated consideration in the period in which they become known. We utilize the portfolio approach to estimate the amount of revenue to recognize for certain contracts which require over-time revenue recognition. Such contracts are grouped together either by revenue stream, customer or product line with each portfolio of contracts grouped together based on having similar characteristics. The portfolio approach is utilized only when the result of the accounting is not expected to be materially different than if applied to individual contracts. We also may enter into offset agreements or conditions as part of obtaining orders for our products and services from certain government customers in foreign countries. These agreements are designed to enhance the social and economic environment of the foreign country by requiring the contractor to promote investment in the country. These agreements also may be satisfied through our use of cash or other means of providing financial support for in-country projects with local companies. The amounts ultimately applied against our offset agreements are based on negotiations with the customer and satisfaction of our offset obligations are included in the estimates of our total costs to complete the contract. When contracts are modified, we consider whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications that are for goods or services that are not distinct from the existing contract, due to the significant integration with the original goods or services provided, are accounted for as if they were part of that existing contract with the effect of the contract modification recognized as an adjustment to revenue on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct, they are accounted for as a new contract and performance obligation, which are recognized prospectively. Certain contracts with customers have options for the customer to acquire additional goods or services. In most cases, the pricing of these options are reflective of the standalone selling price of the good or service. These options do not provide the customer with a material right and are accounted for only when the customer exercises the option to purchase the additional goods or services. If the option on the customer contract was not indicative of the standalone selling price of the good or service, the material right would be accounted for as a separate performance obligation. Under most of our U.S. government contracts, if the contract is terminated for convenience, we are entitled to payment for items delivered and fair compensation for work performed, the costs of settling and paying other claims, and a reasonable profit on the costs incurred or committed. In the ordinary course of business, agencies of the U.S. and other governments audit our claimed indirect costs and conduct inquiries and investigations of our business practices with respect to government contracts to determine whether our operations are conducted in accordance with these requirements and the terms of the relevant contracts. U.S. government agencies, including the Defense Contract Audit Agency (“DCAA”), routinely audit our claimed indirect costs, for compliance with the Cost Accounting Standards and the Federal Acquisition Regulations. These agencies also conduct reviews and investigations and make inquiries regarding our accounting and other systems in connection with our performance and business practices with respect to our government contracts and subcontracts. Costs to fulfill and obtain a contract are considered for capitalization based on contract specific facts and circumstances. The incremental costs to fulfill a contract, including setup and implementation costs prior to beginning the period of performance, may be capitalized when expenses are incurred prior to the start of satisfying a performance obligation. The capitalized costs are subsequently expensed over the contract’s period of performance. We have elected to use certain practical expedients permitted under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers Cumulative Catch-up Adjustments Changes in estimates and assumptions related to our arrangements accounted for using the cost-to-cost method are recorded using the cumulative catch-up method of accounting. These changes are primarily adjustments to the estimated profitability for our long-term programs where we provide component inventory management, supply chain logistics programs, and/or repair services. For the three-month period ended August 31, 2024, we recognized favorable cumulative catch-up adjustments of $2.4 million. For the three-month period ended August 31, 2023, we recognized favorable and (unfavorable) cumulative catch-up adjustments of $3.0 million and $(2.5) million, respectively. Contract Assets and Liabilities The timing of revenue recognition, customer billings, and cash collections results in a contract asset or contract liability at the end of each reporting period. For instances where we recognize revenue prior to having an unconditional right to payment, we record a contract asset or liability. When an unconditional right to consideration exists, we reduce our contract asset or liability and recognize an unbilled or trade receivable. When amounts are dependent on factors other than the passage of time in order for payment from a customer to be due, we record a contract asset which consists of costs incurred where revenue recognized over time using the cost-to-cost model exceeds the amounts billed to customers. Contract liabilities include advance payments and billings in excess of revenue recognized. Certain customers make advance payments prior to the satisfaction of our performance obligations on the contract. These amounts are recorded as contract liabilities until such performance obligations are satisfied, either over time as costs are incurred or at a point in time when deliveries are made. Contract assets and contract liabilities are determined on a contract-by-contract basis. Net contract assets and liabilities are as follows: August 31, May 31, 2024 2024 Change Contract assets – current $ 147.9 $ 123.2 $ 24.7 Contract assets – non-current 23.1 24.6 (1.5) Contract liabilities: Deferred revenue – current (22.3) (14.7) (7.6) Deferred revenue on long-term contracts (5.9) (7.2) 1.3 Net contract assets $ 142.8 $ 125.9 $ 16.9 Contract assets – non-current is reported within Other non-current assets, contract liabilities – current is reported within Accrued liabilities, and deferred revenue on long-term contracts is reported within Other liabilities on our Condensed Consolidated Balance Sheets. Changes in contract assets and contract liabilities primarily result from the timing difference between our performance of services and payments from customers. During fiscal 2024, we experienced delayed collections from one of our significant regional airline customers and issued the customer a Notice of Payment and Other Defaults during the second quarter of fiscal 2024 to request payment and reserve our rights under our agreements. In the fourth quarter of fiscal 2024, we terminated a power-by-the-hour (“PBH”) program with this customer which resulted in a net termination charge of $4.8 million. The charge included a reduction in contract assets and revenue of $7.8 million and the establishment We currently expect full payment from the customer of all amounts due under the terminated agreement and all other agreements and do not believe a reserve for credit loss is warranted. Our Condensed Consolidated Balance Sheet as of August 31, 2024 included accounts receivable of $13.2 million, including $6.8 million past due, and contract assets of $11.2 million related to this customer. During the first quarter of fiscal 2025, our Mobility business received a stop-work order from our U.S. Government customer on the Next Generation Pallet contract as the program was terminated for convenience by the customer. Under the conditions for the termination for convenience, we have the right to submit a proposal for recovery of our incurred costs. In conjunction with the termination, we expensed equipment and inventory of $12.7 million and recognized a contract asset of $9.5 million reflecting the estimated recovery on our incurred costs. We expect to submit our proposal to the customer in calendar year 2024. Changes in our deferred revenue were as follows for the three-month periods ended August 31, 2024 and 2023: Three Months Ended August 31, 2024 2023 Deferred revenue at beginning of period $ (21.9) $ (32.4) Revenue deferred (84.4) (66.8) Revenue recognized 74.2 61.1 Other (1) 3.9 1.0 Deferred revenue at end of period $ (28.2) $ (37.1) (1) Other includes cumulative catch-up adjustments, foreign currency translation, and other adjustments. Remaining Performance Obligations As of August 31, 2024, we had approximately $725 million of remaining performance obligations, also referred to as firm backlog, which excludes unexercised contract options and potential orders under our indefinite-delivery, indefinite-quantity contracts. We expect that approximately 65% of this backlog will be recognized as revenue over the next 12 months, an additional 25% of the firm backlog over the following 12 months, and the balance thereafter. The amount of remaining performance obligations that are expected to be recognized as revenue beyond 12 months primarily relates to our long-term programs where we provide component inventory management, supply chain logistics programs, and/or repair services. Disaggregation of Revenue Third-party sales across the major customer markets for each of our operating segments for the three-month periods ended August 31, 2024 and 2023 were as follows: Three Months Ended August 31, 2024 2023 Parts Supply: Commercial $ 210.4 $ 206.0 Government and defense 39.3 30.8 $ 249.7 $ 236.8 Repair & Engineering Commercial $ 191.2 $ 121.6 Government and defense 26.4 15.9 $ 217.6 $ 137.5 Integrated Solutions: Commercial $ 70.0 $ 62.8 Government and defense 98.9 93.5 $ 168.9 $ 156.3 Expeditionary Services: Commercial $ 1.3 $ 2.1 Government and defense 24.2 17.0 $ 25.5 $ 19.1 Consolidated sales by geographic region for the three-month periods ended August 31, 2024 and 2023 were as follows: Three Months Ended August 31, 2024 2023 U.S./Canada $ 473.4 $ 408.9 Europe/Africa 108.8 91.4 Asia/South Pacific 64.0 41.2 Other 15.5 8.2 $ 661.7 $ 549.7

Accounts Receivable

Accounts Receivable	3 Months Ended
Accounts Receivable	Aug. 31, 2024
Accounts Receivable
Accounts Receivable	5. Accounts Receivable Financial instruments that potentially subject us to concentrations of market or credit risk consist principally of trade receivables. While our trade receivables are diverse and represent a number of entities and geographic regions, the majority are with the U.S. government and its contractors and entities in the aviation industry. The composition of our accounts receivable is as follows: August 31, May 31, 2024 2024 U.S. Government contracts: Trade receivables $ 31.8 $ 34.4 Unbilled receivables 13.7 9.4 45.5 43.8 All other customers: Trade receivables 246.3 216.1 Unbilled receivables 19.1 27.3 265.4 243.4 $ 310.9 $ 287.2

Accounting for Stock-Based Comp

Accounting for Stock-Based Compensation	3 Months Ended
Accounting for Stock-Based Compensation	Aug. 31, 2024
Accounting for Stock-Based Compensation
Accounting for Stock-Based Compensation	6. Accounting for Stock-Based Compensation Restricted Stock In the three-month period ended August 31, 2024, as part of our annual long-term stock incentive compensation, we granted 124,200 shares of performance-based restricted stock and 72,955 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these shares was $67.02 (the closing price per share of our common stock on the grant date). We also granted 19,010 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $70.99 (the closing price per share of our common stock on the grant date). Expense charged to operations for restricted stock during each of the three-month periods ended August 31, 2024 and 2023 was $4.1 million and $3.4 million, respectively. Stock Options In July 2023, as part of our annual long-term stock incentive compensation, we granted 157,310 stock options to eligible employees at an exercise price per share of $67.02 and grant date fair value per share of $25.51. The fair value of stock options was estimated using the Black-Scholes option pricing model with the following assumptions: Risk-free interest rate 4.2 % Expected volatility of common stock 36.0 % Dividend yield 0.0 % Expected option term in years 4.9 The total intrinsic value of stock options exercised during the three-month periods ended August 31, 2024 and 2023 was $0.2 million and $7.6 million, respectively. Expense charged to operations for stock options during the three-month periods ended August 31, 2024 and 2023 was $0.9 million and $0.9 million, respectively.

Inventories

Inventories	3 Months Ended
Inventories	Aug. 31, 2024
Inventories
Inventories	7. Inventories The summary of inventories is as follows: August 31, May 31, 2024 2024 Aircraft and engine parts, components and finished goods $ 594.9 $ 580.3 Raw materials and parts 112.2 114.1 Work-in-process 41.1 38.7 $ 748.2 $ 733.1

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
Supplemental Cash Flow Information	Aug. 31, 2024
Supplemental Cash Flow Information
Supplemental Cash Flow Information	8. Supplemental Cash Flow Information Three Months Ended August 31, 2024 2023 Interest paid $ 9.0 $ 5.3 Income taxes paid 5.2 6.7 Income tax refunds received 0.1 — Operating lease liabilities arising from obtaining or re-measuring ROU assets 0.8 6.9

Sale of Receivables

Sale of Receivables	3 Months Ended
Sale of Receivables	Aug. 31, 2024
Sale of Receivables
Sale of Receivables	9. Sale of Receivables On February 23, 2018, we entered into a Purchase Agreement with Citibank N.A. (“Purchaser”) for the sale, from time to time, of certain accounts receivable due from certain customers (the “Purchase Agreement”). Under the Purchase Agreement, the maximum amount of receivables sold is limited to $150 million and Purchaser may, but is not required to, purchase the eligible receivables we offer to sell. The term of the Purchase Agreement runs through February 22, 2025, but, the Purchase Agreement may also be terminated earlier under certain circumstances. The term of the Purchase Agreement shall be automatically extended for annual terms unless either party provides advance notice that they do not intend to extend the term. We have no retained interests in the sold receivables, other than limited recourse obligations in certain circumstances, and only perform collection and administrative functions for the Purchaser. We account for these receivable transfers as sales under ASC 860, Transfers and Servicing During the three-month periods ended August 31, 2024 and 2023, we sold $50.9 million and $35.0 million, respectively, of receivables under the Purchase Agreement and remitted $35.6 million and $34.1 million, respectively, to the Purchaser on their behalf. As of August 31, 2024 and May 31, 2024, we had collected cash of $4.3 million and $0.9 million, respectively, which was not yet remitted to the Purchaser as of those dates and was classified as Restricted cash on our Condensed Consolidated Balance Sheets. We recognize discounts on the sale of our receivables and other fees related to the Purchase Agreement in Other income, net on our Condensed Consolidated Statements of Operations. We incurred discounts on the sale of our receivables of $0.3 million and $0.2 million during the three-month periods ended August 31, 2024 and 2023, respectively.

Financing Arrangements

Financing Arrangements	3 Months Ended
Financing Arrangements	Aug. 31, 2024
Financing Arrangements
Financing Arrangements	10. Financing Arrangements A summary of the carrying amount of our debt is as follows: August 31, May 31, 2024 2024 Amended Revolving Credit Facility with interest payable monthly $ 442.0 $ 447.0 Senior Notes 550.0 550.0 Debt issuance costs, net (11.0) (11.6) Long-term debt $ 981.0 $ 985.4 Credit Agreement On December 14, 2022, we entered into a new credit agreement with various financial institutions as lenders and Wells Fargo Bank, N.A. as administrative agent for the lenders (the “Credit Agreement”) that included an unsecured revolving credit facility (the “Revolving Credit Facility”) that we can draw upon for working capital and general corporate purposes. In conjunction with the Credit Agreement, we terminated our revolving credit facility under the credit agreement dated April 12, 2011, as amended, (the “2011 Credit Agreement”) with the outstanding borrowings under the 2011 Credit Agreement at the date of its termination rolled over to the Credit Agreement. On March 1, 2024, we entered into an amendment (the “Revolver Amendment”) to our Credit Agreement, which governs the Company’s existing revolving credit facility (the revolving credit facility as amended by the Revolver Amendment, the “Amended Revolving Credit Facility”). Among other things, the Revolver Amendment (i) increased the aggregate commitments under the Amended Revolving Credit Facility to $825.0 million from $620 million under the Revolving Credit Facility, (ii) increased the maximum leverage ratio permitted under the financial covenants applicable to the Amended Revolving Credit Facility and (iii) included an additional pricing level that will increase the applicable interest rate margins on the Amended Revolving Credit Facility to 250 basis points (in the case of secured overnight financing rate (“SOFR”)) and 150 basis points (in the case of Base Rate loans) if our adjusted total debt to EBITDA ratio exceeds 3.75:1.00. Under certain circumstances, we may request an increase to the lending commitments under the Credit Agreement by an aggregate amount of up to $300 million, not to exceed $1,125 million in total. The Credit Agreement expires on December 14, 2027. Borrowings under the Credit Agreement bear interest at an applicable variable rate based on SOFR plus 112.5 to 250 basis points based on certain financial measurements plus 10 basis points if a SOFR loan, or at the offered fluctuating Base Rate plus 12.5 to 150 basis points based on certain financial measurements if a Base Rate loan. Borrowings outstanding under the Amended Revolving Credit Facility at August 31, 2024 were $442.0 million and there were approximately $9.6 million of outstanding letters of credit, which reduced the availability of this facility to $373.4 million. Our Credit Agreement requires us to comply with leverage and interest coverage ratios and comply with certain affirmative and negative covenants, including those relating to financial reporting and notification, compliance with applicable laws, and limitations on additional liens, indebtedness, acquisitions, investments and disposition of assets. Our Credit Agreement also requires our significant domestic subsidiaries to provide a guarantee of payment under the Credit Agreement. Senior Notes On March 1, 2024, we issued $550.0 million aggregate principal amount of 6.75% Senior Notes due 2029 (the “Notes”) to fund a portion of the purchase price for the acquisition of the Product Support business. The Notes were issued pursuant to an indenture (the “Base Indenture”), dated as of March 1, 2024, between us and Wilmington Trust, National Association (the “Trustee”), as trustee, and a First Supplemental Indenture, dated as of March 1, 2024 (together with the Base Indenture, the “Indenture”), among us, the Note Guarantors (as defined below) and the Trustee. Our domestic subsidiaries that guarantee the Amended Revolving Credit Facility (collectively, the “Note Guarantors”) guaranteed (the “Note Guarantees”) all of the Company’s obligations under the Notes and the Indenture. The Notes and the Note Guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”). The Notes bear interest at a rate of 6.75% per year, payable semiannually in cash in arrears on March 15 and September 15 of each year, commencing September 15, 2024. The Notes will mature on March 15, 2029. At any time prior to March 15, 2026, the Company may redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date plus an applicable “make-whole” premium. At any time prior to March 15, 2026, the Company may also redeem up to 40% of the Notes with net cash proceeds of certain equity offerings at a redemption price equal to 106.75% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. On or after March 15, 2026, the Company may redeem the Notes, in whole or in part, at specified redemption prices if redeemed during the twelve-month period beginning on March 15 of the years indicated below: 2026 103.375 % 2027 101.688 % 2028 and thereafter 100.000 % The Notes are jointly and severally guaranteed by each of the Note Guarantors. The Notes and the Note Guarantees are the general unsecured obligations of us or each of the Note Guarantors and, as applicable, (i) rank equal in right of payment to all of our or such Note Guarantor’s existing and future senior indebtedness, (ii) rank senior in right of payment to all of our or such Note Guarantor’s obligations that are, by their terms expressly subordinated in right of payment to the Notes or the Note Guarantees, (iii) are effectively subordinated to all of our or such Note Guarantor’s secured indebtedness, to the extent of the value of the assets securing such indebtedness and (iv) in the case of the Note Guarantees, are structurally subordinated to indebtedness and other liabilities of our subsidiaries that are not Note Guarantors. The Indenture contains customary covenants, including limitations on the ability of us and our restricted subsidiaries to (i) incur debt, certain disqualified stock and preferred stock, (ii) create liens, (iii) pay dividends or distributions or redeem or repurchase equity, (iv) prepay subordinated debt or make certain investments, (v) transfer and sell assets, (vi) engage in consolidations, mergers or dispositions of all or substantially all of our or their assets, (vii) enter into agreements that restrict dividends, loans and other distributions from subsidiaries and (viii) enter into transactions with affiliates. These covenants are subject to a number of important exceptions and qualifications described in the Indenture. In addition, the Indenture contains a number of customary events of default, including, among other things, payment default, failure to comply with covenants or agreements contained in the Indenture or the Notes and certain provisions related to bankruptcy events. At August 31, 2024, our variable and fixed rate debt had a fair value that approximates their carrying values and is classified as Level 3 in the fair value hierarchy as their fair values are determined based upon one or more significant unobservable inputs. At August 31, 2024, we were in compliance with the financial and other covenants in our financing agreements.

Other Non-current Assets

Other Non-current Assets	3 Months Ended
Other Non-current Assets	Aug. 31, 2024
Other Non-current Assets
Other Non-current Assets	11. Other Non-current Assets Investment in Indian Joint Venture Our investments in joint ventures include a 40% ownership interest in a joint venture in India to operate an airframe maintenance facility. We also guaranteed 40% of the Indian joint venture’s debt and each of the partners in the Indian joint venture have a loan to the joint venture proportionate to its equity ownership. During the first quarter of fiscal 2025, we executed a Share Purchase Agreement with our Indian joint venture partners whereby we agreed to sell our equity to those partners for $0.1 million conditional on the repayment of our loan and the release of our guarantee of the Indian joint venture’s debt. During the first quarter of fiscal 2025, we were released from our debt guarantee obligations and de-recognized the related $9.4 million guarantee liability. In the second quarter of fiscal 2025, we received $2.1 million reflecting the principal value of our shareholder loan. In conjunction with these transactions and the Share Purchase Agreement, we recognized a gain of $1.4 million related to our exit from the joint venture. Investment in AAR Sumisho Aviation Services (ASAS) Our investments in joint ventures include a 50% ownership interest in a joint venture to provide aviation aftermarket supply chain solutions to Japanese defense and global commercial markets. Each of the partners in the ASAS joint venture have provided financial guarantees to third-parties to guarantee the payments for ASAS’s financing arrangements, including inventory purchases. No liabilities have been recognized on the outstanding guarantees. We are unable to estimate our maximum exposure under these guarantees as they are largely dependent on the volume of inventory purchase orders outstanding. Our sales to the ASAS JV, including service fees earned by us on providing support to the ASAS JV, were $1.7 million and $0.2 million during the three-month periods ended August 31, 2024 and 2023, respectively. Investments in Aircraft Joint Ventures Under the terms of servicing agreements with certain of our aircraft joint ventures, we provide administrative services and technical advisory services, including aircraft evaluations, oversight and logistical support of the maintenance process and records management. We also provide evaluation and inspection services prior to the purchase of an aircraft and remarketing services with respect to the divestiture of aircraft by the joint ventures. During the three-month periods ended August 31, 2024 and 2023, we received $0.5 million and $0.4 million, respectively, for such services.

Earnings per Share

Earnings per Share	3 Months Ended
Earnings per Share	Aug. 31, 2024
Earnings per Share
Earnings per Share	12. Earnings per Share The computation of basic earnings per share is based on the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share is based on the weighted average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options and shares issuable upon vesting of restricted stock awards. In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method A reconciliation of the computations of basic and diluted earnings per share information for the three-month periods ended August 31, 2024 and 2023 is as follows: Three Months Ended August 31, 2024 2023 Basic and Diluted EPS: Net income (loss) $ 18.0 $ (0.6) Less income attributable to participating shares (0.2) — Net income attributable to common shareholders for earnings per share 17.8 $ (0.6) Weighted Average Shares: Weighted average common shares outstanding – basic 35.2 34.7 Additional shares from assumed exercise of stock options 0.4 0.4 Weighted average common shares outstanding – diluted 35.6 35.1 Earnings (Loss) per share – basic and diluted $ 0.50 $ (0.02) At August 31, 2024, no stock options were determined to be anti-dilutive. The potential dilutive effect of 57,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding – diluted for the three-month period ended August 31, 2023 as the shares would have been anti-dilutive.

Defined Benefit Pension Settlem

Defined Benefit Pension Settlement	3 Months Ended
Defined Benefit Pension Settlement	Aug. 31, 2024
Defined Benefit Pension Settlement
Defined Benefit Pension Settlement	13. Defined Benefit Pension Settlement During the three-month period ended August 31, 2023, we settled all future obligations under our frozen U.S. defined benefit retirement plan (the “U.S. Retirement Plan”). The settlement included a combination of lump-sum payments to participants who elected to receive them and the transfer of the remaining benefit obligations to a third-party insurance company under group annuity contracts. The purchase of the group annuity contracts was funded directly by assets of the U.S. Retirement Plan and required no additional cash or asset contributions from us. As a result of the settlements, we recognized a non-cash, pre-tax pension settlement charge of $26.7 million ($16.1 million after-tax) related to the accelerated recognition of all unamortized net actuarial losses in Accumulated other comprehensive loss. Surplus plan assets remained after the settlement and have been primarily used to fund certain contributions associated with one of our qualified 401(k) plans. Surplus plan assets not used for these 401(k) contributions would be subject to a 20% excise tax upon withdrawal. As of August 31, 2024, our Condensed Consolidated Balance Sheet included $4.3 million of remaining surplus plan assets. We expect to utilize $3.6 million over the next twelve months to fund our non-elective, discretionary contributions to the 401(k) plan. This amount is presented within Prepaid expenses and other current assets our Condensed Consolidated Balance Sheet with the remainder of the surplus plan assets presented within Other non-current assets.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
Accumulated Other Comprehensive Loss	Aug. 31, 2024
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	14. Accumulated Other Comprehensive Loss Changes in our accumulated other comprehensive loss (“AOCL”) by component for the three-month periods ended August 31, 2024 and 2023 were as follows: Currency Translation Pension Adjustments Plans Total Balance at June 1, 2024 $ (5.5) $ (3.3) $ (8.8) Other comprehensive income 1.5 — 1.5 Balance at August 31, 2024 $ (4.0) $ (3.3) $ (7.3) Balance at June 1, 2023 $ (5.7) $ (17.8) $ (23.5) Other comprehensive loss before reclassifications 0.5 — 0.5 Amounts reclassified from AOCL — 14.9 14.9 Total other comprehensive income 0.5 14.9 15.4 Balance at August 31, 2023 $ (5.2) $ (2.9) $ (8.1)

Business Segment Information

Business Segment Information	3 Months Ended
Business Segment Information	Aug. 31, 2024
Business Segment Information
Business Segment Information	15. Business Segment Information Our operating segments are comprised of: ● Parts Supply, primarily consisting of our sales of used serviceable engine and airframe parts and components and distribution of new parts; ● Repair & Engineering, primarily consisting of our maintenance, repair, and overhaul services across airframes and components, including landing gear; ● Integrated Solutions, primarily consisting of our fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense, U.S. Department of State, and foreign governments, flight hour component inventory and repair programs for commercial airlines, and integrated software solutions, including Trax; and ● Expeditionary Services, primarily consisting of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and non-governmental organizations with sales derived from the engineering, design, integration, and manufacture of pallets, shelters, and containers. The accounting policies for the segments are the same as those described in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended May 31, 2024. Cost of sales consists principally of the cost of products, including material used in manufacturing operations, direct labor, and overhead. The Company has not aggregated operating segments for purposes of identifying reportable segments. Inter-segment sales are recorded at fair value, which results in intercompany profit on inter-segment sales that is eliminated in consolidation. Corporate selling, general and administrative expenses include centralized functions such as legal, finance, treasury and human resources with a portion of the costs allocated to our operating segments. Selected financial information for each segment is as follows: Three Months Ended August 31, 2024 Third-Party Inter-segment Total Sales Sales Sales Parts Supply $ 249.7 $ 2.5 $ 252.2 Repair & Engineering 217.6 22.6 240.2 Integrated Solutions 168.9 0.3 169.2 Expeditionary Services 25.5 — 25.5 $ 661.7 $ 25.4 $ 687.1 Three Months Ended August 31, 2023 Third-Party Inter-segment Total Sales Sales Sales Parts Supply $ 236.8 $ 0.8 $ 237.6 Repair & Engineering 137.5 19.5 157.0 Integrated Solutions 156.3 1.1 157.4 Expeditionary Services 19.1 — 19.1 $ 549.7 $ 21.4 $ 571.1 The following table reconciles segment operating income to income from continuing operations before provision for income taxes: Three Months Ended August 31, 2024 2023 Segment operating income: Parts Supply $ 30.1 $ 15.1 Repair & Engineering 21.1 9.1 Integrated Solutions 7.7 7.7 Expeditionary Services (1.7) 1.3 57.2 33.2 Corporate and other (13.8) (7.9) 43.4 25.3 Pension settlement charge — (26.7) Losses related to sale and exit of business (0.1) (0.7) Other income, net (0.1) — Interest expense (18.8) (5.8) Interest income 0.5 0.4 Income (Loss) before income taxes $ 24.9 $ (7.5)

Legal Proceedings

Legal Proceedings	3 Months Ended
Legal Proceedings	Aug. 31, 2024
Legal Proceedings
Legal Proceedings	16. Legal Proceedings We are involved in various claims and legal actions, including environmental matters, arising in the ordinary course of business. We are not a party to any material pending legal proceeding (including any governmental or environmental proceeding) other than routine litigation incidental to our business except for the following: Russian Bankruptcy Litigation During calendar years 2016 and 2017, certain subsidiaries of the Company purchased four engines from VIM-AVIA Airlines, LLC (“VIM-AVIA”), a company organized in Russia. Subsequent to the purchase of the engines, VIM-AVIA declared bankruptcy in Russian courts, and shortly thereafter the receiver of the VIM-AVIA bankruptcy estate and one of the major creditors of VIM-AVIA filed a claw-back action in the Arbitration Court of the Russian Republic of Tartarstan (the “Russian Trial Court”) against our subsidiaries alleging that the contracts entered into with VIM-AVIA in the 2016-2017 timeframe are invalid. The clawback action alleged that our subsidiaries owe the VIM-AVIA bankruptcy estate approximately $13 million, the alleged fair market value of the four engines at the time of sale. In March 2023, the Russian Trial Court awarded a $1.8 million judgment against the Company relating to one engine, and dismissed all the other claims against the Company relating to the three remaining engines. The Company recognized a corresponding charge of $1.8 million in the third quarter of fiscal 2023. The Company thereafter appealed the $1.8 million judgment entered against it by the Russian Trial Court. The receiver and the creditor thereafter appealed to the Russian Trial Court’s judgment dismissing their claims relating to the remaining three engines. On September 26, 2023, the Russian Eleventh Arbitration Court of Appeal (the “Russian Appellate Court”) issued an order (i) affirming the Russian Trial Court’s adverse judgment against the Company relating to one of the four engines; (ii) reversing the Russian Trial Court’s dismissal of the claims relating to the remaining three engines; and (iii) awarding a judgment against the Company in the total amount of $13.0 million. During the first quarter of fiscal 2024, the Company recognized a charge for $11.2 million representing the judgment against the Company for the remaining three engines. On October 25, 2023, the Company petitioned the Russian Court of Cassation for leave to obtain the Russian Court of Cassation’s appellate review of the Russian Appellate Court’s order of September 26, 2023. On November 13, 2023, the Russian Court of Cassation granted the Company’s petition. On January 31, 2024, the Russian Court of Cassation (i) reversed the Russian Appellate Court’s order of September 26, 2023; (ii) vacated in its entirety the judgment that had been entered by the Russian Appellate Court on September 26, 2023; and (iii) remanded the clawback action to the Russian Appellate Court to determine whether certain extraordinary circumstances specified by the Russian Cassation Court existed warranting the invalidation of the disputed contracts and the entry of an adverse judgment against the Company. On July 11, 2024, the Russian Appellate Court issued its full ruling, similar to the adverse judgment it entered on September 26, 2023, invalidating the disputed contracts in the amount of approximately $13 million. On August 9, 2024, the Company appealed the July 11, 2024 ruling to the Russian Court of Cassation. On September 19, 2024, the Russian Court of Cassation held a hearing on the Company’s appeal, which was postponed to October 2, 2024. The Company will continue to strongly dispute all claims asserted in the clawback action. The Company believes that the Russian Appellate Court’s adverse ruling was a result of, among other things, a hostile business and legal environment for foreign companies in Russia, which has been caused by developments in the Russia/Ukraine conflict, including the imposition of a range of sanctions and export controls on Russian entities and individuals by the U.S. and its North Atlantic Treaty Organization allies. The Company’s ability to satisfy the judgment, in whole or in part, or to otherwise settle the receiver’s claims may be restricted by the Company’s obligation to comply with U.S. trade restrictions likely applicable to undisclosed creditors of the VIM-AVIA bankruptcy estate. Although there can be no assurances, the Company also believes it would have strong defenses to any attempt that may be made to recognize and enforce outside of Russia any adverse judgment that may be entered against it in further proceedings before the Russian courts. As of August 31, 2024, our Consolidated Balance Sheet included a liability for the matter of $13.0 million classified as long-term in Other liabilities. Performance Guarantee In conjunction with the fiscal 2021 sale of our Composites business, we retained a performance guarantee to a customer of the Composites business (the “Customer”) under an existing contract providing flap track fairings on the A220 aircraft (“A220 Contract”). The term of the A220 Contract and our performance guarantee extend for the duration that A220 aircraft are in service and the customer continues to maintain support for the A220 aircraft. The performance guarantee does not contain a financial cap. In March 2022, the buyer of the Composites business (the “Buyer”) filed for bankruptcy and moved to have the bankruptcy court reject the A220 Contract. The Customer also notified us that it believes the Buyer has failed to timely deliver products in accordance with the terms of the A220 Contract and that the Customer has incurred losses related to the asserted non-compliance that the Customer believes is covered by our performance guarantee. To date, the Customer has provided us with limited details in support of the extent of the Customer’s claimed losses with respect to the A220 Contract and its contention that we may be responsible under our performance guarantee to reimburse the Customer for any portion of its claimed losses. The Customer filed suit against us during the fourth quarter of fiscal 2023 claiming damages of at least $32 million. In this regard, while we are continuing to seek additional detail around the facts and legal basis underlying the claim for losses the Customer attributed to the A220 Contract and the Customer’s corresponding claim under the performance guarantee, we strongly disagree with the premise of the Customer’s claim based on the information available and known to us at this time, and we believe that we have numerous defenses available against this claim that we will vigorously pursue. While it is reasonably possible that we will incur a loss from the claim under the performance guarantee, we are unable to estimate the range of loss on this claim. There can be no assurance that the Customer’s claim under the performance guarantee will not have a material adverse effect on our operations, financial position and cash flows. Self-Reporting of Potential Foreign Corrupt Practices Act Violations The Company retained outside counsel to investigate possible violations of the Company’s Code of Conduct, the U.S. Foreign Corrupt Practices Act (“FCPA”), and other applicable laws, relating to the Company’s activities in Nepal and South Africa. Based on these investigations, in fiscal 2019, we self-reported these matters to the U.S. Department of Justice, the SEC and the UK Serious Fraud Office. The Company is fully cooperating with the reviews by these agencies, although we are unable at this time to predict what action, if any, they may take. A former employee of AAR International, Inc. and an employee of a former business partner have each pleaded guilty to one count of conspiracy to violate the FCPA in connection with the matters under investigation in Nepal and South Africa. While it is reasonably possible that we will incur a loss related to the investigations, we are unable to estimate the range of loss. Enforcement Proceeding in Nepal The Company became aware via news reports that Nepal’s Commission for Investigation of Abuse of Authority (“CIAA”) apparently initiated a criminal proceeding in April 2024 against over 35 entities and individuals, including AAR International, Inc., a subsidiary of the Company. The charges allege violations of Nepalese public procurement law and are related to the same transactions in Nepal in 2016 to 2017 that the Company previously self-reported to U.S. and U.K. authorities, as described above. The proceeding also names a former AAR International, Inc. employee, as well as John Holmes in his capacity as president of AAR International, Inc. at the time of the alleged conduct. Neither AAR International, Inc. nor Mr. Holmes has been served personally by the CIAA, though a June 3, 2024 summons published in the Nepalese press purported to instruct all named individuals and entities to appear before the Special Court in Nepal within 30 days. AAR International, Inc. does not accept or admit these charges, and neither AAR International, Inc. nor Mr. Holmes intends to appear before the Special Court for several reasons including because the Company believes that any proceedings before the Special Court would lack appropriate due process protections. Although there can be no assurance, the Company does not believe that these charges (or the outcome of these proceedings if the CIAA proceeds with these charges in absentia) will have a material adverse effect on the Company’s operations, financial position and cash flows.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Aug. 31, 2024	Aug. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 18	$ (0.6)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Aug. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
Acquisitions (Tables)	Aug. 31, 2024
Acquisitions
Schedule of purchase price allocation	Accounts receivable $ 42.2 Contract assets 19.1 Inventory 68.3 Rotable assets 21.0 Property & equipment 36.1 Intangible assets 179.0 Investment in joint venture 17.9 Other assets 4.3 Accounts payable (21.6) Other liabilities (18.6) Net assets acquired 347.7 Goodwill 372.3 Purchase price, net of cash acquired $ 720.0
Schedule of fair value of assets acquired and liabilities assumed	Accounts receivable $ 8.8 Other assets 3.0 Intangible assets 61.7 Deferred revenue (4.1) Deferred tax liabilities (15.1) Other liabilities (4.6) Net assets acquired 49.7 Goodwill 63.8 Purchase price, net of cash acquired $ 113.5

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
Revenue Recognition (Tables)	Aug. 31, 2024
Revenue Recognition
Schedule of net contract assets and liabilities	August 31, May 31, 2024 2024 Change Contract assets – current $ 147.9 $ 123.2 $ 24.7 Contract assets – non-current 23.1 24.6 (1.5) Contract liabilities: Deferred revenue – current (22.3) (14.7) (7.6) Deferred revenue on long-term contracts (5.9) (7.2) 1.3 Net contract assets $ 142.8 $ 125.9 $ 16.9
Schedule of changes in deferred revenue after adoption of ASC 606	Three Months Ended August 31, 2024 2023 Deferred revenue at beginning of period $ (21.9) $ (32.4) Revenue deferred (84.4) (66.8) Revenue recognized 74.2 61.1 Other (1) 3.9 1.0 Deferred revenue at end of period $ (28.2) $ (37.1) (1) Other includes cumulative catch-up adjustments, foreign currency translation, and other adjustments.
Schedule of sales across the major customer markets for each of our operating segments	Three Months Ended August 31, 2024 2023 Parts Supply: Commercial $ 210.4 $ 206.0 Government and defense 39.3 30.8 $ 249.7 $ 236.8 Repair & Engineering Commercial $ 191.2 $ 121.6 Government and defense 26.4 15.9 $ 217.6 $ 137.5 Integrated Solutions: Commercial $ 70.0 $ 62.8 Government and defense 98.9 93.5 $ 168.9 $ 156.3 Expeditionary Services: Commercial $ 1.3 $ 2.1 Government and defense 24.2 17.0 $ 25.5 $ 19.1
Schedule of sales by geographic region	Three Months Ended August 31, 2024 2023 U.S./Canada $ 473.4 $ 408.9 Europe/Africa 108.8 91.4 Asia/South Pacific 64.0 41.2 Other 15.5 8.2 $ 661.7 $ 549.7

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
Accounts Receivable (Tables)	Aug. 31, 2024
Accounts Receivable
Schedule of accounts receivable	August 31, May 31, 2024 2024 U.S. Government contracts: Trade receivables $ 31.8 $ 34.4 Unbilled receivables 13.7 9.4 45.5 43.8 All other customers: Trade receivables 246.3 216.1 Unbilled receivables 19.1 27.3 265.4 243.4 $ 310.9 $ 287.2

Accounting for Stock-Based Co_2

Accounting for Stock-Based Compensation (Tables)	3 Months Ended
Accounting for Stock-Based Compensation (Tables)	Aug. 31, 2024
Accounting for Stock-Based Compensation
Schedule of assumptions used in the Black-Scholes option pricing model to estimate the fair value of stock option grant	Risk-free interest rate 4.2 % Expected volatility of common stock 36.0 % Dividend yield 0.0 % Expected option term in years 4.9

Inventories (Tables)

Inventories (Tables)	3 Months Ended
Inventories (Tables)	Aug. 31, 2024
Inventories
Schedule of inventories	August 31, May 31, 2024 2024 Aircraft and engine parts, components and finished goods $ 594.9 $ 580.3 Raw materials and parts 112.2 114.1 Work-in-process 41.1 38.7 $ 748.2 $ 733.1

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
Supplemental Cash Flow Information (Tables)	Aug. 31, 2024
Supplemental Cash Flow Information
Schedule of supplemental cash flow information	Three Months Ended August 31, 2024 2023 Interest paid $ 9.0 $ 5.3 Income taxes paid 5.2 6.7 Income tax refunds received 0.1 — Operating lease liabilities arising from obtaining or re-measuring ROU assets 0.8 6.9

Financing Arrangements (Tables)

Financing Arrangements (Tables)	3 Months Ended
Financing Arrangements (Tables)	Aug. 31, 2024
Financing Arrangements
Schedule of carrying amount of debt	August 31, May 31, 2024 2024 Amended Revolving Credit Facility with interest payable monthly $ 442.0 $ 447.0 Senior Notes 550.0 550.0 Debt issuance costs, net (11.0) (11.6) Long-term debt $ 981.0 $ 985.4
Schedule of specified redemption prices	2026 103.375 % 2027 101.688 % 2028 and thereafter 100.000 %

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
Earnings per Share (Tables)	Aug. 31, 2024
Earnings per Share
Schedule of reconciliation of computations of basic and diluted earnings per share information	Three Months Ended August 31, 2024 2023 Basic and Diluted EPS: Net income (loss) $ 18.0 $ (0.6) Less income attributable to participating shares (0.2) — Net income attributable to common shareholders for earnings per share 17.8 $ (0.6) Weighted Average Shares: Weighted average common shares outstanding – basic 35.2 34.7 Additional shares from assumed exercise of stock options 0.4 0.4 Weighted average common shares outstanding – diluted 35.6 35.1 Earnings (Loss) per share – basic and diluted $ 0.50 $ (0.02)

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Aug. 31, 2024
Accumulated Other Comprehensive Loss
Schedule of changes in accumulated other comprehensive loss ("AOCL") by component	Currency Translation Pension Adjustments Plans Total Balance at June 1, 2024 $ (5.5) $ (3.3) $ (8.8) Other comprehensive income 1.5 — 1.5 Balance at August 31, 2024 $ (4.0) $ (3.3) $ (7.3) Balance at June 1, 2023 $ (5.7) $ (17.8) $ (23.5) Other comprehensive loss before reclassifications 0.5 — 0.5 Amounts reclassified from AOCL — 14.9 14.9 Total other comprehensive income 0.5 14.9 15.4 Balance at August 31, 2023 $ (5.2) $ (2.9) $ (8.1)

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
Business Segment Information (Tables)	Aug. 31, 2024
Business Segment Information
Schedule of selected financial information for each segment	Three Months Ended August 31, 2024 Third-Party Inter-segment Total Sales Sales Sales Parts Supply $ 249.7 $ 2.5 $ 252.2 Repair & Engineering 217.6 22.6 240.2 Integrated Solutions 168.9 0.3 169.2 Expeditionary Services 25.5 — 25.5 $ 661.7 $ 25.4 $ 687.1 Three Months Ended August 31, 2023 Third-Party Inter-segment Total Sales Sales Sales Parts Supply $ 236.8 $ 0.8 $ 237.6 Repair & Engineering 137.5 19.5 157.0 Integrated Solutions 156.3 1.1 157.4 Expeditionary Services 19.1 — 19.1 $ 549.7 $ 21.4 $ 571.1
Schedule of reconciles segment operating income to income from continuing operations before provision for income taxes	Three Months Ended August 31, 2024 2023 Segment operating income: Parts Supply $ 30.1 $ 15.1 Repair & Engineering 21.1 9.1 Integrated Solutions 7.7 7.7 Expeditionary Services (1.7) 1.3 57.2 33.2 Corporate and other (13.8) (7.9) 43.4 25.3 Pension settlement charge — (26.7) Losses related to sale and exit of business (0.1) (0.7) Other income, net (0.1) — Interest expense (18.8) (5.8) Interest income 0.5 0.4 Income (Loss) before income taxes $ 24.9 $ (7.5)

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Millions			3 Months Ended			12 Months Ended
Acquisitions (Details) - USD ($) $ in Millions	Mar. 01, 2024	Mar. 20, 2023	Aug. 31, 2024	Nov. 30, 2023	Aug. 31, 2023	May 31, 2024
Acquisitions
Business combination, acquisition related costs			$ 1.5
Line of Credit	$ 0
Reduction in purchase price			2.9
Product support business
Acquisitions
Purchase price	725
Business combination, acquisition related costs	21
Reduction in purchase price	2.9
Product support business \| Bridge Financing Facility
Acquisitions
Interest Expense						$ 6.1
Trax USA Corp
Acquisitions
Purchase price		$ 120
Business combination, acquisition related costs			5.1
Business combination, consideration transferred, liabilities incurred				$ 1.8
Deferred Compensation Arrangement with Individual, Compensation Expense			$ 1.5		$ 1.4
Escrow Deposit		12
Contingent consideration		20
Trax USA Corp \| Trade Names
Acquisitions
Indefinite-Lived Intangible Assets Acquired		6.1
Trax USA Corp \| Customer relationships
Acquisitions
Finite-Lived Intangible Assets Acquired	$ 95.7	$ 33.6
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	12 years 6 months	12 years
Trax USA Corp \| Developed technology
Acquisitions
Finite-Lived Intangible Assets Acquired	$ 83.3	$ 22
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	20 years	20 years

Acquisitions - Fair value of as

Acquisitions - Fair value of assets acquired and liabilities (Details) - USD ($) $ in Millions	Aug. 31, 2024	May 31, 2024	Mar. 01, 2024	Mar. 20, 2023
Acquisitions
Accounts receivable				$ 8.8
Intangible assets				61.7
Deferred revenue				(4.1)
Deferred tax liabilities				(15.1)
Other assets				3
Other liabilities				(4.6)
Net assets acquired				49.7
Goodwill	$ 552.6	$ 554.8		63.8
Purchase price, net of cash acquired				$ 113.5
Product support business
Acquisitions
Accounts receivable			$ 42.2
Contract assets			19.1
Inventory			68.3
Rotable assets			21
Property, plant and equipment			36.1
Intangible assets			179
Investment in joint venture			17.9
Other assets			4.3
Accounts payable			(21.6)
Other liabilities			(18.6)
Net assets acquired			347.7
Goodwill			372.3
Purchase price, net of cash acquired			$ 720

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended
Revenue Recognition (Details) - USD ($) $ in Millions	Aug. 31, 2024	Aug. 31, 2023
Revenue Recognition
Practical Expedient, Incremental costs of obtaining a contract	true
Practical Expedient, Remaining performance obligations	true
Favorable cumulative catch-up adjustments	$ 2.4	$ 3
Unfavorable cumulative catch-up adjustments		$ (2.5)

Revenue Recognition - Contract

Revenue Recognition - Contract Assets, Liabilities and Performance Obligations (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024
Contract assets and liabilities
Contract assets - current	$ 147.9		$ 123.2
Contract assets - non-current	23.1		24.6
Contract liabilities:
Deferred revenue - current	(22.3)		(14.7)
Deferred revenue on long-term contracts	(5.9)		(7.2)
Net contract assets	142.8		125.9
Change in contract assets - current	24.7
Change in contract assets - non-current	(1.5)
Change in deferred revenue - current	(7.6)
Change in deferred revenue on long-term contracts	1.3
Change in net contract assets	16.9
Change in contract assets and revenue	24.5	$ 12.3
Accounts receivable, net	310.9		287.2
Changes in deferred revenue
Deferred revenue at beginning of period	(21.9)	(32.4)	(32.4)
Revenue deferred	(84.4)	(66.8)
Revenue recognized	74.2	61.1
Other	3.9	1
Deferred revenue at end of period	(28.2)	$ (37.1)	(21.9)
Remaining Performance Obligations
Remaining performance obligation	$ 725
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-01
Remaining Performance Obligations
Remaining performance obligation (as a percent)	65%
Expected timing of satisfaction of remaining performance obligation	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-01
Remaining Performance Obligations
Remaining performance obligation (as a percent)	25%
Expected timing of satisfaction of remaining performance obligation	12 months
Air Line Customers \| Termination Of Power By The Hour Program
Contract liabilities:
Termination charge			4.8
Change in contract assets and revenue			7.8
Change in contract revenue			7.5
Repair reserves			2.5
Obligation to purchase the rotable assets			5.5
Asset purchase obligation of purchase price			$ 20.9
Accounts receivable, net	$ 13.2
Contract assets with customer	11.2
Air Line Customers \| Termination Of Power By The Hour Program \| Past Due
Contract liabilities:
Accounts receivable, net	6.8
U.S. Government Customer \| Next Generation Pallet Contract
Contract liabilities:
Contract assets with customer	9.5
Equipment and inventory expensed	$ 12.7

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Disaggregation of revenue by major customer markets
Net sales	$ 661.7	$ 549.7
Parts Supply
Disaggregation of revenue by major customer markets
Net sales	249.7	236.8
Parts Supply \| Commercial
Disaggregation of revenue by major customer markets
Net sales	210.4	206
Parts Supply \| Government and defense
Disaggregation of revenue by major customer markets
Net sales	39.3	30.8
Repair & Engineering
Disaggregation of revenue by major customer markets
Net sales	217.6	137.5
Repair & Engineering \| Commercial
Disaggregation of revenue by major customer markets
Net sales	191.2	121.6
Repair & Engineering \| Government and defense
Disaggregation of revenue by major customer markets
Net sales	26.4	15.9
Integrated Solutions
Disaggregation of revenue by major customer markets
Net sales	168.9	156.3
Integrated Solutions \| Commercial
Disaggregation of revenue by major customer markets
Net sales	70	62.8
Integrated Solutions \| Government and defense
Disaggregation of revenue by major customer markets
Net sales	98.9	93.5
Aviation Services
Disaggregation of revenue by major customer markets
Net sales	661.7	549.7
Aviation Services \| U.S./Canada
Disaggregation of revenue by major customer markets
Net sales	473.4	408.9
Aviation Services \| Europe/Africa
Disaggregation of revenue by major customer markets
Net sales	108.8	91.4
Aviation Services \| Asia/South Pacific
Disaggregation of revenue by major customer markets
Net sales	64	41.2
Aviation Services \| Other
Disaggregation of revenue by major customer markets
Net sales	15.5	8.2
Expeditionary Services
Disaggregation of revenue by major customer markets
Net sales	25.5	19.1
Expeditionary Services \| Commercial
Disaggregation of revenue by major customer markets
Net sales	1.3	2.1
Expeditionary Services \| Government and defense
Disaggregation of revenue by major customer markets
Net sales	$ 24.2	$ 17

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Millions	Aug. 31, 2024	May 31, 2024
Accounts Receivable
Total accounts receivable	$ 310.9	$ 287.2
U.S. Government contracts
Accounts Receivable
Trade receivables	31.8	34.4
Unbilled receivables	13.7	9.4
Total accounts receivable	45.5	43.8
All other customers
Accounts Receivable
Trade receivables	246.3	216.1
Unbilled receivables	19.1	27.3
Total accounts receivable	$ 265.4	$ 243.4

Accounting for Stock-Based Co_3

Accounting for Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Jul. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Stock options, additional disclosures
Compensation expenses		$ (4.1)	$ 3.7
Assumptions used in the Black-Scholes option pricing models to estimate the fair value of each stock option grant
Risk-free interest rate		4.20%
Expected volatility of common stock		36%
Dividend yield		0%
Expected option term in years		4 years 10 months 24 days
Restricted stock
Stock options, additional disclosures
Compensation expenses		$ 4.1	3.4
Performance-based restricted stock
Stock options, additional disclosures
Granted (in shares)		124,200
Stock Appreciation Rights (SARs)
Stock options, additional disclosures
Granted (in shares)		72,955
Granted (in dollars per share)		$ 67.02
Stock Appreciation Rights (SARs) \| Board of Directors
Stock options, additional disclosures
Granted (in shares)		19,010
Granted (in dollars per share)		$ 70.99
Employee Stock Option
Stock options, additional disclosures
Granted (in shares)	157,310
Exercise price (in dollars per share)	$ 67.02
Weighted average fair value of stock options granted (in dollars per share)	$ 25.51
Total intrinsic value of stock options exercised		$ 0.2	7.6
Compensation expenses		$ 0.9	$ 0.9

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Aug. 31, 2024	May 31, 2024
Inventories
Aircraft and engine parts, components and finished goods	$ 594.9	$ 580.3
Raw materials and parts	112.2	114.1
Work-in-process	41.1	38.7
Total inventories	$ 748.2	$ 733.1

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Supplemental Cash Flow Information
Interest paid	$ 9	$ 5.3
Income taxes paid	5.2	6.7
Income tax refunds received	0.1
Operating lease liabilities arising from obtaining or re-measuring ROU assets	$ 0.8	$ 6.9

Sale of Receivables (Details)

Sale of Receivables (Details) - USD ($) $ in Millions	3 Months Ended
Sale of Receivables (Details) - USD ($) $ in Millions	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024	Feb. 23, 2018
Sale of Receivables
Amount collected	$ 13.8		$ 10.3
Purchase Agreement
Sale of Receivables
Retained interests	0
Sale of receivables	50.9	$ 35
Remitted receivables	35.6	34.1
Amount collected	4.3		$ 0.9
Discounts on sale of our receivables	$ 0.3	$ 0.2
Maximum \| Purchase Agreement
Sale of Receivables
Maximum amount of receivables sold				$ 150

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Millions	Mar. 01, 2024	Dec. 14, 2022	Aug. 31, 2024	May 31, 2024
Financing Arrangements
Debt issuance costs, net			$ (11)	$ (11.6)
Long-term debt			981
Senior Notes
Financing Arrangements
Amended Revolving Credit Facility with interest payable monthly			550	550
Aggregate principal amount	$ 550
Interest rate (as a percent)	6.75%
Redemption Period One \| Senior Notes
Financing Arrangements
Debt Instrument, Redemption Price, Percentage	100%
Redemption Period Two \| Senior Notes
Financing Arrangements
Debt Instrument, Redemption Price, Percentage	106.75%
Percentage of principal amount redeemed	40%
2026
Financing Arrangements
Debt Instrument, Redemption Price, Percentage	103.375%
2027
Financing Arrangements
Debt Instrument, Redemption Price, Percentage	101.688%
2028 and thereafter
Financing Arrangements
Debt Instrument, Redemption Price, Percentage	100%
Revolving credit facility with interest payable monthly
Financing Arrangements
Amended Revolving Credit Facility with interest payable monthly			442	$ 447
Revolving Credit Facility
Financing Arrangements
Maximum borrowing capacity	$ 825	$ 620
Revolving Credit Facility \| Minimum
Financing Arrangements
Adjusted total debt to EBITDA ratio	3.75
Revolving Credit Facility \| Revolving credit facility with interest payable monthly
Financing Arrangements
Amended Revolving Credit Facility with interest payable monthly			442
Line of credit facility, Additional borrowing capacity		300
Line of credit facility, Maximum additional borrowing capacity		$ 1,125
Remaining borrowing capacity			373.4
Revolving Credit Facility \| Revolving credit facility with interest payable monthly \| Letter of Credit
Financing Arrangements
Income tax refunds received			$ 9.6
Revolving Credit Facility \| Eurodollar rate \| Revolving credit facility with interest payable monthly \| Minimum
Financing Arrangements
Debt instrument basis spread on variable rate after amendment		1.125%
Revolving Credit Facility \| Eurodollar rate \| Revolving credit facility with interest payable monthly \| Maximum
Financing Arrangements
Debt instrument basis spread on variable rate after amendment		2.50%
Revolving Credit Facility \| Base rate
Financing Arrangements
Increase in basis spread on variable rate	1.50%
Revolving Credit Facility \| Base rate \| Revolving credit facility with interest payable monthly \| Minimum
Financing Arrangements
Debt instrument basis spread on variable rate after amendment		0.125%
Revolving Credit Facility \| Base rate \| Revolving credit facility with interest payable monthly \| Maximum
Financing Arrangements
Debt instrument basis spread on variable rate after amendment		1.50%
Revolving Credit Facility \| SOFR
Financing Arrangements
Increase in basis spread on variable rate	2.50%
Revolving Credit Facility \| SOFR \| Revolving credit facility with interest payable monthly
Financing Arrangements
Debt instrument basis spread on variable rate after amendment		0.10%

Other Non-current Assets - Inve

Other Non-current Assets - Investments in Joint Ventures (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2024	Aug. 31, 2024	Aug. 31, 2023
Investments in Joint Ventures
Income (losses) from joint ventures		$ 2.3	$ (0.9)
AAR sumisho aviation services
Investments in Joint Ventures
Income (losses) from joint ventures		1.7	0.2
Owned Through Joint Ventures \| Aircraft
Investments in Joint Ventures
Proceeds from evaluation and inspection services		$ 0.5	$ 0.4
Owned Through Joint Ventures \| Joint venture in India to operate an airframe maintenance facility
Investments in Joint Ventures
Ownership interest in joint ventures (as a percent)		40%
Percentage on outstanding debt		40%
Owned Through Joint Ventures \| Joint venture in India
Investments in Joint Ventures
Conditional on the repayment of our loan		$ 0.1
Guarantee liability		9.4
Equity method investment, realized gain (loss) on disposal		$ 1.4
Owned Through Joint Ventures \| Joint venture in India \| Subsequent Event
Investments in Joint Ventures
Principal value of our shareholder loan	$ 2.1
Owned Through Joint Ventures \| AAR sumisho aviation services
Investments in Joint Ventures
Ownership interest in joint ventures (as a percent)		50%

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Basic and Diluted EPS:
Net income (loss)	$ 18	$ (0.6)
Less income attributable to participating shares	(0.2)
Net income attributable to common stockholders for earnings per share, Basic	$ 17.8	$ (0.6)
Weighted Average Shares:
Weighted average common shares outstanding-basic	35,200,000	34,700,000
Additional shares from the assumed exercise of stock options	400,000	400,000
Weighted average common shares outstanding-diluted	35,600,000	35,100,000
Earnings (Loss) per share - basic:
Earnings (Loss) per share - basic	$ 0.50	$ (0.02)
Earnings (Loss) per share - diluted:
Earnings (Loss) per share - diluted	$ 0.50	$ (0.02)
Antidilutive shares excluded from the computation of diluted earnings per share (in shares)	0	57,000
Impact of Net Loss on Participating Securities	$ 0

Defined Benefit Pension Settl_2

Defined Benefit Pension Settlement (Details) $ in Millions	3 Months Ended
Defined Benefit Pension Settlement (Details) $ in Millions	Aug. 31, 2024 USD ($)
Defined Benefit Pension Settlement
Funded status at end of year	$ 26.7
Non-cash, after-tax pension settlement charge	$ 16.1
Benefit plan contribution excise tax rate upon withdrawal	20%
Benefit plan remaining surplus plan assets	$ 4.3
Benefit plan utilize to non-elective discretionary contribution	$ 3.6

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Accumulated Other Comprehensive Loss
Beginning Balance	$ (8.8)	$ (23.5)
Other comprehensive income	1.5	0.5
Amounts reclassified from AOCL		14.9
Total other comprehensive income	1.5	15.4
Ending Balance	(7.3)	(8.1)
Currency Translation Adjustments
Accumulated Other Comprehensive Loss
Beginning Balance	(5.5)	(5.7)
Other comprehensive income	1.5	0.5
Total other comprehensive income		0.5
Ending Balance	(4)	(5.2)
Pensions Plans
Accumulated Other Comprehensive Loss
Beginning Balance	(3.3)	(17.8)
Amounts reclassified from AOCL		14.9
Total other comprehensive income		14.9
Ending Balance	$ (3.3)	$ (2.9)

Business Segment Information -

Business Segment Information - Sales by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Business Segment Information
Net sales	$ 661.7	$ 549.7
Inter-segment Sales
Business Segment Information
Net sales	25.4	21.4
Total Sales
Business Segment Information
Net sales	687.1	571.1
Parts Supply
Business Segment Information
Net sales	249.7	236.8
Parts Supply \| Inter-segment Sales
Business Segment Information
Net sales	2.5	0.8
Parts Supply \| Total Sales
Business Segment Information
Net sales	252.2	237.6
Repair & Engineering
Business Segment Information
Net sales	217.6	137.5
Repair & Engineering \| Inter-segment Sales
Business Segment Information
Net sales	22.6	19.5
Repair & Engineering \| Total Sales
Business Segment Information
Net sales	240.2	157
Integrated Solutions
Business Segment Information
Net sales	168.9	156.3
Integrated Solutions \| Inter-segment Sales
Business Segment Information
Net sales	0.3	1.1
Integrated Solutions \| Total Sales
Business Segment Information
Net sales	169.2	157.4
Expeditionary Services
Business Segment Information
Net sales	25.5	19.1
Expeditionary Services \| Total Sales
Business Segment Information
Net sales	$ 25.5	$ 19.1

Business Segment Information _2

Business Segment Information - Reconciliation of segment income to entity income (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Business Segment Information
Operating income	$ 43.4	$ 25.3
Pension settlement charge		(26.7)
Losses related to sale and exit of business	(0.1)	(0.7)
Other income (expense), net	(0.1)
Interest expense	(18.8)	(5.8)
Interest income	0.5	0.4
Income (Loss) before income taxes	24.9	(7.5)
Operating segments
Business Segment Information
Operating income	57.2	33.2
Operating segments \| Parts Supply
Business Segment Information
Operating income	30.1	15.1
Operating segments \| Repair & Engineering
Business Segment Information
Operating income	21.1	9.1
Operating segments \| Integrated Solutions
Business Segment Information
Operating income	7.7	7.7
Operating segments \| Expeditionary Services
Business Segment Information
Operating income	(1.7)	1.3
Corporate and other
Business Segment Information
Operating income	$ (13.8)	$ (7.9)

Legal Proceedings (Details)

Legal Proceedings (Details) $ in Millions		1 Months Ended	3 Months Ended		12 Months Ended
Legal Proceedings (Details) $ in Millions	Sep. 26, 2023 USD ($)	Mar. 31, 2023 USD ($)	Aug. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	May 31, 2017 engine	May 31, 2016 engine	Aug. 31, 2024 USD ($)	Jul. 11, 2024 USD ($)	May 31, 2023 USD ($)
Legal Proceedings
Loss contingency, loss recognized in period			$ 11.2	$ 1.8
Number of engines purchased \| engine					4	4
Litigation settlement, amount awarded to other party	$ 13	$ 1.8
Fair market value of engines at the time of sale							$ 13
Expected loss from Judgement								$ 13
Loss contingency liability recognized			$ 13
Customer filed suit against claiming damages									$ 32
Amount appealed		$ 1.8