AAR CORP

Previous wording

Our Parts Supply segment primarily consists of sales and leasing of USM and aftermarket distribution of new, original equipment manufacturer (“OEM”)-supplied replacement parts.

Current wording

Our Parts Supply segment primarily consists of aftermarket distribution of new, original equipment manufacturer (“OEM”)- supplied replacement parts and sales and leasing of USM.

Previous wording

On September 25, 2025, we acquired the outstanding shares of American Distributors Holding Co., LLC (“ADI”), including ADI American Distributors, LLC and other of ADI’s subsidiaries, for a purchase price of $137.7 million subject to customary post-closing adjustments for cash, working capital, and indebtedness. ADI is a leading distributor of electronic components and assemblies to OEMs across the aerospace and defense industry. The purchase price was paid at closing except for $4.5 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.

Current wording

On September 25, 2025, we acquired the outstanding shares of American Distributors Holding Co., LLC (“ADI”), including ADI American Distributors, LLC and other of ADI’s subsidiaries, for a final purchase price of $137.1 million. ADI is a leading distributor of electronic components and assemblies to OEMs across the aerospace and defense industry.

Previous wording

We are currently expanding both our Miami and Oklahoma City airframe maintenance facilities to meet growing customer demand. In Miami, we are constructing a 114,000 square foot facility with three bays adjacent to our existing hangar. In Oklahoma City, we are constructing an 80,000 square foot facility with three bays and warehouse space adjacent to our existing hangar. The Oklahoma City expansion is expected to be complete in early calendar 2026 and the Miami expansion is expected to be complete in mid-to-late calendar 2026.

Current wording

We are currently expanding both our Miami and Oklahoma City airframe maintenance facilities to meet growing customer demand. In Miami, we are constructing a 114,000 square foot facility with three bays adjacent to our existing hangar. In Oklahoma City, we have completed the construction of an 80,000 square foot facility with three bays and warehouse space adjacent to our existing hangar. The Miami expansion is expected to be complete in mid-to-late calendar 2026.

Previous wording

On November 3, 2025, we acquired the outstanding shares of HAECO Americas, LLC and its subsidiary HAECO Airframe Services, LLC (together, “HAECO Americas”) from HAECO USA, Inc. for a purchase purchase price of $76.5 million subject to customary post-closing adjustments for cash, working capital, and indebtedness. HAECO Americas provides heavy aircraft maintenance, repair, and overhaul (“MRO”) and modification services across its hangars located in Greensboro, North Carolina and Lake City, Florida.

Current wording

On November 3, 2025, we acquired the outstanding shares of HAECO Americas, LLC and its subsidiary HAECO Airframe Services, LLC (together, “HAECO Americas”) from HAECO USA, Inc. for a purchase price of $78.0 million. HAECO Americas provides heavy aircraft maintenance, repair, and overhaul (“MRO”) and modification services across its hangars located in Greensboro, North Carolina and Lake City, Florida.

Previous wording

Consolidated sales for the second quarter of fiscal 2026 increased $109.2 million, or 15.9%, over the prior year quarter primarily due to an increase in sales to commercial customers. Consolidated sales to commercial customers increased $66.2 million, or 13.2%, over the prior year quarter primarily due to strong demand and volume growth in our new parts Distribution activities, including from our recent ADI acquisition which contributed sales of $19.3 million. Our consolidated sales to government customers increased $43.0 million, or 23.1%, primarily due to volume growth in our Parts Supply segment from our new parts Distribution activities.

Current wording

Consolidated sales for the third quarter of fiscal 2026 increased $166.9 million, or 24.6%, over the prior year quarter primarily due to an increase in sales to commercial customers. Consolidated sales to commercial customers increased $130.3 million, or 26.8%, over the prior year quarter primarily due to strong demand and volume growth in our new parts Distribution activities, including from our recent ADI acquisition, which contributed sales of $26.3 million. In addition, our recent HAECO Americas acquisition contributed sales of $55.2 million.

Previous wording

Consolidated cost of sales increased $80.9 million, or 14.5%, over the prior year quarter which was largely in line with the consolidated sales increase of 15.9% discussed above.

Current wording

Consolidated cost of sales increased $143.9 million, or 26.3%, over the prior year quarter, which was largely in line with the consolidated sales increase of 24.6% discussed above.

Previous wording

Consolidated gross profit for the second quarter of fiscal 2026 increased $28.3 million, or 22.0%, over the prior year quarter. Gross profit on sales to government customers increased $16.0 million, or 51.9%, primarily attributable to growth from recently awarded contracts across our programs activities. The gross profit margin on sales to government customers increased to 20.4% from 16.6% in the prior year quarter primarily due to the mix of services across our programs activities, including our recently awarded contracts.

Current wording

Consolidated gross profit for the third quarter of fiscal 2026 increased $23.0 million, or 17.5%, over the prior year quarter. Gross profit on sales to government customers increased $19.7 million, or 54.6%, primarily attributable to the volume growth in our new parts Distribution activities. The gross profit margin on sales to government customers increased to 24.3% from 18.7% in the prior year quarter primarily due to the mix of services across our programs activities, including our recently awarded contracts.

Previous wording

Selling, general and administrative expenses decreased $44.4 million, or 33.4%, from the prior year quarter primarily due to the settlement and related costs of $59.2 million in the second quarter of fiscal 2025. In addition, acquisition, amortization, and integration expenses increased $6.5 million over the prior year quarter reflecting the ADI and HAECO Americas acquisitions.

Current wording

Selling, general and administrative expenses increased $28.5 million, or 46.5%, from the prior year quarter primarily due to the ADI and HAECO Americas acquisitions, which collectively contributed $12.1 million in the third quarter of fiscal 2026. In addition,

Previous wording

As a percent of sales, selling, general and administrative expenses decreased to 11.2% from 19.4% in the prior year primarily due to settlement of the FCPA matters.

Current wording

As a percent of sales, selling, general and administrative expenses increased to 10.6% from 9.0% in the prior year primarily due to the Russian legal liability reversal.

Previous wording

Interest expense decreased $0.2 million in the second quarter of fiscal 2026 compared to the prior year quarter reflecting the impact of both lower interest rates and lower average borrowings. Our average borrowing rate on our Revolving Credit Facility was 5.91% in the second quarter of fiscal 2026 compared to 6.81% in the prior year quarter.

Current wording

Interest expense decreased $1.0 million in the third quarter of fiscal 2026 compared to the prior year quarter reflecting the impact of both lower interest rates and lower average borrowings. Our average borrowing rate on our Amended Revolving Credit Facility was 5.51% in the third quarter of fiscal 2026 compared to 6.38% in the prior year quarter.

Previous wording

Consolidated sales for the six-month period ended November 30, 2025 increased $187.1 million, or 13.9%, over the prior year period primarily due to an increase in sales to commercial customers. Consolidated sales to commercial customers increased $116.6 million, or 12.0%, over the prior year period primarily due to strong demand and volume growth in our new parts Distribution activities, including from our recent ADI acquisition which contributed sales of $19.3 million. Our consolidated sales to government customers increased $70.5 million, or 18.8%, primarily due to volume growth in our Parts Supply segment from our new parts Distribution activities.

Current wording

Consolidated sales for the nine-month period ended February 28, 2026 increased $354.0 million, or 17.5%, over the prior year period primarily due to an increase in sales to commercial customers. Consolidated sales to commercial customers increased $246.9 million, or 16.9%, over the prior year period primarily due to strong demand and volume growth in our new parts Distribution activities, including from our recent ADI acquisition, which contributed sales of $45.6 million. In addition, our recent HAECO Americas acquisition contributed sales of $74.6 million.

Previous wording

In addition, 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 in the first quarter of fiscal 2025. In conjunction with the termination, we recognized sales of $9.5 million reflecting the estimated recovery on our incurred costs in the six-month period ended November 30, 2024.

Current wording

In addition, 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 in the first quarter of fiscal 2025. In conjunction with the termination, we recognized sales of $13.5 million reflecting the estimated recovery on our incurred costs in the nine-month period ended February 28, 2025.

Previous wording

Consolidated cost of sales increased $142.3 million, or 12.9%, over the prior year period which was largely in line with the consolidated sales increase of 13.9% discussed above.

Current wording

Consolidated cost of sales increased $286.2 million, or 17.4%, over the prior year period, which was largely in line with the consolidated sales increase of 17.5% discussed above.

Previous wording

Consolidated gross profit for the six-month period ended November 30, 2025 increased $44.8 million, or 18.2%, over the prior year period. Gross profit on sales to government customers increased $35.8 million, or 64.9%, primarily attributable to volume growth in our Parts Supply segment from our new parts Distribution activities. The gross profit margin on sales to government customers increased to 20.4% from 14.7% in the prior year period primarily due to the mix of services across our programs activities, including our recently awarded contracts.

Current wording

Consolidated gross profit for the nine-month period ended February 28, 2026 increased $67.8 million, or 18.0%, over the prior year period. Gross profit on sales to government customers increased $55.5 million, or 60.8%, primarily attributable to volume growth in our Parts Supply segment from our new parts Distribution activities, including from our ADI acquisition. The gross profit margin on sales to government customers increased to 21.8% from 16.1% in the prior year period primarily due to the mix of services across our programs activities, including our recently awarded contracts.

Previous wording

Gross profit on sales to commercial customers increased $12.3 million, or 12.6%, over the prior year quarter primarily due to strong demand and volume growth in our new parts Distribution activities, including from our recent ADI acquisition. The gross profit margin on sales to commercial customers decreased slightly to 19.4% from 19.6% primarily due to the mix of products and services.

Current wording

Gross profit on sales to commercial customers increased $12.3 million, or 4.3%, over the prior year quarter primarily due to strong demand and volume growth in our new parts Distribution activities, including from our recent ADI acquisition. The gross profit

Previous wording

Selling, general and administrative expenses decreased $49.1 million, or 23.5%, from the prior year period primarily due to the FCPA matters that were settled in the second quarter of fiscal 2025.

Current wording

Selling, general and administrative expenses decreased $20.6 million, or 7.6%, from the prior year period primarily due to the FCPA matters that were settled in the second quarter of fiscal 2025, partially offset by the Russian legal liability reversal.

Previous wording

Interest expense for the six-month period ended November 30, 2025 decreased $0.2 million reflecting the impact of both lower interest rates and lower average borrowings. Our average borrowing rate was 6.02% for the six-month period ended November 30, 2025 compared to 6.80% in the prior year period.

Current wording

Interest expense for the nine-month period ended February 28, 2026 decreased $1.2 million reflecting the impact of both lower interest rates and lower average borrowings. Our average borrowing rate on our Amended Revolving Credit Facility was 5.85% for the nine-month period ended February 28, 2026 compared to 6.66% in the prior year period.

Previous wording

Our effective income tax rate for continuing operations was 27.4% for the six-month period ended November 30, 2025. In the prior year period, our income tax expense was $15.0 million while our income before income taxes was $2.4 million. The majority of the FCPA settlement charge was nondeductible for income tax purposes resulting in no income tax benefit.

Current wording

Our income tax expense was $51.2 million in the nine-month period ended February 28, 2026 for an effective income tax rate of 27.2%. In the prior year period, our income tax expense was $12.8 million while our loss before income taxes was $8.7 million. The majority of the FCPA settlement charge was nondeductible for income tax purposes resulting in no income tax benefit.

Previous wording

Sales in the Parts Supply segment increased $79.9 million, or 29.2%, over the prior year quarter primarily due to a $77.9 million increase in sales in our new parts Distribution activities from increased demand and growth from new and expanded distribution agreements. The ADI acquisition contributed sales of $28.0 million during the second quarter of fiscal 2026.

Current wording

Sales in the Parts Supply segment increased $121.8 million, or 45.0%, over the prior year quarter primarily due to a $99.9 million increase in sales in our new parts Distribution activities from increased demand and growth from new and expanded distribution agreements. The ADI acquisition contributed sales of $41.5 million during the third quarter of fiscal 2026.

Previous wording

Sales in the Repair & Engineering segment increased $15.7 million, or 6.9%, over the prior year quarter primarily due to growth within our Airframe MRO services of $29.3 million. The HAECO Americas acquisition contributed sales of $19.4 million which was more than offset by the divestiture of our LGO business in the fourth quarter of fiscal 2025. The LGO business contributed sales of $20.4 million in the second quarter of fiscal 2025.

Current wording

Sales in the Repair & Engineering segment increased $49.4 million, or 22.9%, over the prior year quarter primarily due to growth within our Airframe MRO services of $60.4 million. The HAECO Americas acquisition contributed sales of $55.2 million, which was partially offset by the divestiture of our LGO business in the fourth quarter of fiscal 2025. The LGO business contributed sales of $19.1 million in the third quarter of fiscal 2025.

Previous wording

Operating income in the Repair & Engineering segment decreased $0.1 million, or 0.4%, from the prior year quarter with the operating margin decreasing to 9.3% from 10.0%. These decreases were primarily due to lower profitability of the recent HAECO Americas acquisition.

Current wording

Operating income in the Repair & Engineering segment decreased $3.9 million, or 20.5%, from the prior year quarter with the operating margin decreasing to 5.7% from 8.8%. These decreases were primarily due to the mix of products and services, including the pre-integration, lower margin HAECO Americas operations.

Previous wording

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. In the six-month period ended November 30, 2024, we recognized favorable cumulative catch-up adjustments of $2.4 million compared to no cumulative catch-up adjustments in the current year period. These adjustments relate to our long-term, power-by-the-hour programs where we provide component inventory management and repair services to commercial customers.

Current wording

Operating income in the Integrated Solutions segment decreased $0.2 million, or 2.1%, from the prior year quarter with the operating margin decreasing to 5.6% from 5.9%. These decreases were primarily attributable to our commercial programs activity including an inventory provision of $4.9 million recognized in conjunction with the decision to exit our consumables and expendables product line and unfavorable cumulative catch-up adjustments of $1.7 million during the current quarter. 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 adjustments relate to our long-term, power-by-the-hour programs where we provide component inventory management and repair services to commercial customers.

Previous wording

Operating income in the Expeditionary Services segment increased $0.2 million, or 9.1%, over the prior year quarter and the operating margin increased to 11.2% from 10.9%. These increases were primarily attributable to the mix of products sold.

Current wording

Operating income in the Expeditionary Services segment decreased $3.6 million, or 56.3%, from the prior year quarter and the operating margin decreased to 14.4% from 22.3%. These decreases were attributable to the pallet-related items previously discussed.

Previous wording

Sales in the Parts Supply segment for the six-month period ended November 30, 2025 increased $148.0 million, or 28.3%, over the prior year period primarily due to a $113.4 million increase in sales in our new parts Distribution activities from increased demand and growth from new and expanded distribution agreements. The ADI acquisition contributed sales of $28.0 million during the six-month period ended November 30, 2025. Whole asset sales in our aftermarket parts trading activities increased $19.0 million over the prior year period.

Current wording

Sales in the Parts Supply segment for the nine-month period ended February 28, 2026 increased $269.8 million, or 34.0%, over the prior year period primarily due to a $213.2 million increase in sales in our new parts Distribution activities from increased demand and growth from new and expanded distribution agreements. The ADI acquisition contributed sales of $69.5 million during the nine- month period ended February 28, 2026. Whole asset sales in our aftermarket parts trading activities increased $16.9 million over the prior year period.

Previous wording

Operating income in the Parts Supply segment increased $20.1 million, or 32.6%, over the prior year period primarily due to improved profitability from the increased sales volume within our new parts distribution activities.

Current wording

Operating income in the Parts Supply segment increased $25.4 million, or 23.7%, over the prior year period primarily due to improved profitability from the increased sales volume within our new parts distribution activities.

Previous wording

Sales in the Repair & Engineering segment for the six-month period ended November 30, 2025 increased $12.7 million, or 2.8%, over the prior year period primarily due to growth for our component repair services of $24.5 million and our Airframe MRO services of $23.0 million. The HAECO Americas acquisition contributed sales of $19.4 million in the current period which was more than offset by the divestiture of our LGO business in the fourth quarter of fiscal 2025. The LGO business contributed sales of $39.6 million in the prior year period.

Current wording

Sales in the Repair & Engineering segment for the nine-month period ended February 28, 2026 increased $62.1 million, or 9.4%, over the prior year period primarily due to growth within our Airframe MRO services of $103.0 million. The HAECO Americas acquisition contributed sales of $74.6 million in the current period, which was partially offset by the divestiture of our LGO business in the fourth quarter of fiscal 2025. The LGO business contributed sales of $58.6 million in the prior year period.

Previous wording

Operating income in the Repair & Engineering segment decreased $0.8 million, or 1.8%, from the prior year period and the operating margin decreased to 9.4% from 9.8%. These decreases were primarily attributable to the mix of products and services sold across the segment.

Current wording

Operating income in the Repair & Engineering segment decreased $4.7 million, or 7.5%, from the prior year period and the operating margin decreased to 8.0% from 9.5%. These decreases were primarily due to the mix of products and services, including the pre-integration, lower margin HAECO Americas operations.

Previous wording

Sales in the Integrated Solutions segment for the six-month period ended November 30, 2025 increased $28.5 million, or 8.6%, over the prior year period primarily due to higher government program activity.

Current wording

Sales in the Integrated Solutions segment for the nine-month period ended February 28, 2026 increased $33.4 million, or 6.7%, over the prior year period primarily due to higher government program activity.

Previous wording

Operating income in the Integrated Solutions segment increased $9.4 million, or 66.2%, over the prior year period and the operating margin increased to 6.5% from 4.3%. These increases were primarily attributable to our government programs activity and its sales growth as well as higher profitability from the mix of products and services.

Current wording

Operating income in the Integrated Solutions segment increased $9.2 million, or 38.7%, over the prior year period and the operating margin increased to 6.2% from 4.8%. These increases were primarily attributable to our government programs activity and its sales growth as well as its higher profitability from the mix of products and services.

Previous wording

Sales in the Expeditionary Services segment for the six-month period ended November 30, 2025 decreased $2.1 million, or 4.6%, from the prior year period primarily due to the sales recognized in conjunction with the termination of our Next Generation Pallet contract in the prior year period.

Current wording

Sales in the Expeditionary Services segment for the nine-month period ended February 28, 2026 decreased $11.3 million, or 15.2%, from the prior year period primarily due to sales of $13.5 million recognized in conjunction with the termination of our Next Generation Pallet contract in the prior year period.

Previous wording

Operating income in the Expeditionary Services segment increased $4.9 million, or 980.0%, over the prior year period primarily due to the impact of termination of the Next Generation Pallet contract. In conjunction with the termination in the six-month period ended November 30, 2024, 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. Operating margin increased to 12.4% from 1.1% in the prior year period primarily due to the contract termination.

Current wording

Operating income in the Expeditionary Services segment increased $1.3 million, or 18.8%, over the prior year period primarily due to the impact of termination of the Next Generation Pallet contract. In conjunction with the termination in the prior year period, 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. Operating margin increased to 13.0% from 9.3% in the prior year period primarily due to the contract termination.

Previous wording

At November 30, 2025, our liquidity and capital resources included working capital of $1,096.1 million inclusive of cash of $75.6 million. We expect that our cash on hand, coupled with future cash flows from operations and other available sources of liquidity discussed below, will provide ample liquidity to enable us to meet our cash requirements for at least the next 12 months and foreseeable future thereafter.

Current wording

At February 28, 2026, our liquidity and capital resources included working capital of $1,110.7 million inclusive of cash of $78.5 million. We expect that our cash on hand, coupled with future cash flows from operations and other available sources of liquidity discussed below, will provide ample liquidity to enable us to meet our cash requirements for at least the next 12 months and foreseeable future thereafter.

Previous wording

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 $620.0 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 increases the interest rate margins on the Amended Revolving Credit Facility to 250 basis points (in the case loans based on the 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.

Current wording

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 $620.0 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 increases the interest rate margins on the Amended Revolving Credit Facility to 250 basis points (in the case loans based on the secured overnight financing rate (“SOFR”)) and 150 basis points (in the case of Base Rate (as defined in the Revolver Amendment) loans) if our adjusted total debt to EBITDA ratio exceeds 3.75:1.00.

Previous wording

At November 30, 2025, borrowings outstanding under the Amended Revolving Credit Facility were $260.0 million and there were approximately $10.0 million of outstanding letters of credit, which reduced the availability under this facility to $555.0 million. There are no other terms or covenants limiting the availability of the Amended Revolving Credit Facility. As of November 30, 2025, we also had other financing arrangements that did not limit availability on our Amended Revolving Credit Facility, including foreign lines of credit of $9.8 million.

Current wording

At February 28, 2026, borrowings outstanding under the Amended Revolving Credit Facility were $195.0 million and there were approximately $10.5 million of outstanding letters of credit, which reduced the availability under this facility to $619.5 million. There are no other terms or covenants limiting the availability of the Amended Revolving Credit Facility. As of February 28, 2026, we also had other financing arrangements that did not limit availability on our Amended Revolving Credit Facility, including foreign lines of credit of $10.0 million.

Previous wording

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 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.

Current wording

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 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. The Company may redeem the Notes, in whole or in part, at specified redemption prices ranging from 100.000% to 103.375% depending on the date of redemption.

Previous wording

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 Accounting Standards Codification 860,Transfers and Servicing, and de-recognize the sold receivables from our Condensed Consolidated Balance Sheet. At November 30, 2025, we have utilized $20.5 million which reduced the availability under the Purchase Agreement to $129.5 million.

Current wording

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 Accounting Standards Codification 860,Transfers and Servicing, and de-recognize the sold receivables from our Condensed Consolidated Balance Sheet. At February 28, 2026, we have utilized $18.5 million, which reduced the availability under the Purchase Agreement to $131.5 million.

Previous wording

On December 16, 2021, our Board of Directors authorized a renewal of our stock repurchase program, under which we may repurchase up to $150 million of our common stock with no expiration date. No repurchases were made during the six-month period ended November 30, 2025. Since inception of the renewal authorization, we have repurchased 2.4 million shares for an aggregate purchase price of $107.5 million. The timing and amount of repurchases are subject to prevailing market conditions and other considerations, including our liquidity and acquisition and other investment opportunities.

Current wording

On December 16, 2021, our Board of Directors authorized a renewal of our stock repurchase program, under which we may repurchase up to $150 million of our common stock with no expiration date. No repurchases were made during the nine-month period ended February 28, 2026. Since inception of the renewal authorization, we have repurchased 2.4 million shares for an aggregate purchase price of $107.5 million. The timing and amount of repurchases are subject to prevailing market conditions and other considerations, including our liquidity and acquisition and other investment opportunities.

Previous wording

Net cash used in operating activities was $31.3 million in the six-month period ended November 30, 2025 compared to cash provided of $3.4 million in the prior year period. The increase in the cash used in operating activities from the prior year of $34.7 million was primarily attributable to working capital changes, including the timing of vendor payments.

Current wording

Net cash provided by operating activities was $43.4 million in the nine-month period ended February 28, 2026 compared to cash used of $15.3 million in the prior year period. The increase in the cash provided by operating activities from the prior year of $58.7 million was primarily attributable to working capital changes, including the timing of customer invoicing. In addition, we received a $50 million prepayment from a customer in the third quarter of fiscal 2026 for which $43.8 million remained as deferred revenue at February 28, 2026.

Previous wording

Net cash used in investing activities was $237.1 million in the six-month period ended November 30, 2025 compared to $13.2 million in the prior year period. The increase in cash used in investing activities from the prior year of $223.9 million was primarily related to ADI and HAECO Americas acquisitions in the second quarter of fiscal 2026.

Current wording

Net cash used in investing activities was $251.8 million in the nine-month period ended February 28, 2026 compared to $16.9 million in the prior year period. The increase in cash used in investing activities from the prior year of $234.9 million was primarily related to ADI and HAECO Americas acquisitions in the second quarter of fiscal 2026.

Previous wording

Net cash provided by financing activities was $255.4 million in the six-month period ended November 30, 2025 compared to cash used of $3.8 million in the prior year period. The increase in cash provided by financing activities over the prior year of $259.2 million was primarily related to the common stock offering we completed in the second quarter of fiscal 2026.

Current wording

Net cash provided by financing activities was $199.3 million in the nine-month period ended February 28, 2026 compared to $37.0 million in the prior year period. The increase in cash provided by financing activities over the prior year of $162.3 million was primarily related to the common stock and debt offerings we completed in the second quarter of fiscal 2026 to fund our fiscal 2026 acquisitions and reduce our borrowings under our Amended Revolving Credit Facility.