06:23 AM EDT, 09/24/2025 (MT Newswires) -- AAR (AIR) reported higher fiscal first-quarter results year over year, buoyed by double-digit revenue growth in the aviation services provider's parts supply operating segment.

Adjusted earnings came in at $1.08 a share for the quarter ended Aug. 31, up from $0.85 a year earlier, the company said late Tuesday. Five analysts polled by FactSet expected non-GAAP EPS of $0.98. Sales advanced 12% to $739.6 million, ahead of the $689.3 million consensus based on the same number of analysts.

"Our first quarter was a strong start to the fiscal year as we drove significant growth across all of our segments," Chief Executive John Holmes said in a statement. "Adjusted sales were up 17% organically largely driven by parts supply which was up 27% in the quarter."

Revenue in the parts supply segment climbed to $317.8 million from $249.7 million in the prior-year quarter, amid "strong growth across both the commercial and government end markets," Chief Financial Officer Sean Gillen said on an earnings call, according to a FactSet transcript. Repair and engineering sales moved down to $214.6 million from $217.6 million.

In the integrated solutions business, revenue inclined to $185 million from $168.9 million last year, aided by robust gains in the company's government end market "as recent new wins ramped up in the quarter," Gillen said on the call. Expeditionary services sales decreased to $22.2 million from $25.5 million a year ago.

"Adjusted sales growth to government customers increased 21% and adjusted organic sales to commercial customers increased 15% over the same period last year," according to Gillen. "For the quarter, total commercial sales made up 71% of total sales while government sales made up the remaining 29%."

For the ongoing quarter, AAR expects sales to increase by 7% to 10%, excluding the impact of its former Landing Gear Overhaul business, which generated $20.4 million in revenue in the prior-year period, Holmes told analysts on the call. The company completed the sale of the business in April. Adjusted operating margin is pegged at 9.6% to 10% for the quarter, Holmes said.

For fiscal 2026, the company now anticipates organic sales growth approaching 10%, up from its previous projection of 9% in July, Holmes said. "We are well-positioned in the most attractive segments of the growing aviation aftermarket," the CEO added.