AAR Corp. reported first-quarter fiscal 2027 sales of $918 million, up 24% year over year and including 11% organic growth, with gains across its commercial and government businesses. Adjusted EBITDA margin rose 100 basis points to 12.7%, or 13.3% excluding legacy commercial programs, while adjusted diluted EPS increased 38% to $1.49. The company also agreed to acquire a 65% controlling interest in MRO Holdings at an implied enterprise value of approximately $4 billion. The transaction is designed to broaden AAR's aviation aftermarket platform across parts distribution, heavy maintenance, component repair and software, with pro forma annual sales of approximately $4.3 billion and nearly $700 million of adjusted EBITDA before synergies. AAR expects approximately $75 million of annual run-rate cost synergies within three to four years and a medium-term adjusted EBITDA margin of 19% to 20%. The deal is expected to raise net leverage to approximately 3.6 times at closing, above AAR's 2 to 2.5 times target range, before deleveraging toward about 3 times within 24 months. The HAECO Americas integration continued to weigh on Repair, Engineering & Software margins, while management said bookings and customer demand remained strong.