AAR Corp. reported first-quarter fiscal 2027 sales of $918 million, up 24% year over year with 11% organic growth, as it agreed to acquire a 65% controlling interest in MRO Holdings at an implied enterprise value of approximately $4 billion. The transaction is expected to create a combined company with approximately $4.3 billion of annual sales and nearly $700 million of adjusted EBITDA before synergies, while generating approximately $75 million of annual run-rate cost synergies within three to four years. Moody’s Ratings affirmed AAR’s Ba2 Corporate Family Rating but revised its outlook to negative from stable, citing execution and integration risks. AAR expects net leverage of approximately 3.6 times at closing, including full run-rate synergies, while Moody’s projects adjusted leverage of 4.9 times after the transaction compared with 2.4 times at fiscal year-end 2026. Moody’s expects leverage to decline toward 4.2 times by fiscal 2028 if AAR prioritizes debt reduction and defers purchases of the remaining 35% stake. AAR’s adjusted diluted EPS rose 38% to $1.49, but HAECO Americas integration continued to pressure Repair, Engineering & Software margins.