Business Segment Information

9 Months Ended

Feb. 28, 2026

Business Segment Information

Business Segment Information

16. Business Segment Information

Our operating segments are comprised of:

● Parts Supply, primarily consisting of our sales of used serviceable material (“USM”), including aircraft, engine and airframe parts and components and distribution of new parts (“Distribution”);

● Repair & Engineering, primarily consisting of our MRO services across airframes (“Airframe MRO”) and components (“Component Services”);

● 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 (“DoD”), the U.S. Department of State (“DoS”) 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, 2025. Cost of sales consists principally of the cost of products, including material used in manufacturing operations, direct labor, and overhead.

Our Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer and he evaluates performance on our operating segments using operating income as the primary profitability measure. Our operating segments are aligned principally around differences in products and services and is consistent with how our CODM allocates resources, assesses performance, and makes decisions.

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.

Significant expenses for each segment are as follows:

	Three Months Ended February 28, 2026
					Selling,		Other
			Cost of		General and		Segment		Operating
	Sales		Sales		Administrative		Items		Income
Parts Supply	$	392.5	$	311.4	$	31.7	$	(1.3)	$	50.7
Repair & Engineering		265.3		222.9		27.4		(0.1)		15.1
Integrated Solutions		167.8		140.8		17.7		(0.1)		9.4
Expeditionary Services		19.5		15.1		1.5		0.1		2.8
	$	845.1	$	690.2	$	78.3	$	(1.4)	$	78.0
Corporate and other										(12.2)
										65.8
Bargain purchase gain										35.7
Gain on sale of headquarters building										9.8
Loss related to sale and exit of businesses, net										(0.4)
Other expense, net										(0.7)
Interest expense										(17.5)
Interest income										0.4
Income before income taxes									$	93.1

	Three Months Ended February 28, 2025
					Selling,		Other
			Cost of		General and		Segment		Operating
	Sales		Sales		Administrative		Items		Income
Parts Supply	$	270.7	$	215.9	$	10.1	$	(0.7)	$	45.4
Repair & Engineering		215.9		173.3		23.4		0.2		19.0
Integrated Solutions		162.9		136.2		17.3		(0.2)		9.6
Expeditionary Services		28.7		20.4		1.9		—		6.4
	$	678.2	$	545.8	$	52.7	$	(0.7)	$	80.4
Corporate and other										(9.3)
										71.1
Losses related to sale and exit of businesses										(64.0)
Other expense, net										(0.1)
Interest expense										(18.5)
Interest income										0.4
Income before income taxes									$	(11.1)

	Nine Months Ended February 28, 2026
					Selling,		Other
			Cost of		General and		Segment		Operating
	Sales		Sales		Administrative		Items		Income
Parts Supply	$	1,063.9	$	851.6	$	84.7	$	(4.9)	$	132.5
Repair & Engineering		724.4		589.8		75.2		1.2		58.2
Integrated Solutions		528.6		443.5		52.4		(0.3)		33.0
Expeditionary Services		63.1		49.9		5.0		—		8.2
	$	2,380.0	$	1,934.8	$	217.3	$	(4.0)	$	231.9
Corporate and other										(34.2)
										197.7
Bargain purchase gain										35.7
Gain on sale of headquarters building										9.8
Gain related to sale and exit of businesses, net										0.2
Other expense, net										(1.0)
Interest expense										(55.4)
Interest income										1.2
Income before income taxes									$	188.2

	Nine Months Ended February 28, 2025
					Selling,		Other
			Cost of		General and		Segment		Operating
	Sales		Sales		Administrative		Items		Income
Parts Supply	$	794.1	$	635.0	$	53.1	$	(1.1)	$	107.1
Repair & Engineering		662.3		528.6		74.1		(3.3)		62.9
Integrated Solutions		495.2		420.8		51.2		(0.6)		23.8
Expeditionary Services		74.4		62.4		5.1		—		6.9
	$	2,026.0	$	1,646.8	$	183.5	$	(5.0)	$	200.7
Corporate and other										(88.5)
										112.2
Losses related to sale and exit of businesses										(65.3)
Other expense, net										(0.4)
Interest expense										(56.6)
Interest income										1.4
Loss before income taxes									$	(8.7)

Selected financial information for each segment is as follows:

	Three Months Ended February 28, 2026						Three Months Ended February 28, 2025
	Third-Party		Inter-segment		Total		Third-Party		Inter-segment		Total
	Sales		Sales		Sales		Sales		Sales		Sales
Parts Supply	$	392.5	$	8.0	$	400.5	$	270.7	$	7.3	$	278.0
Repair & Engineering		265.3		17.7		283.0		215.9		20.5		236.4
Integrated Solutions		167.8		2.5		170.3		162.9		0.5		163.4
Expeditionary Services		19.5		—		19.5		28.7		—		28.7
	$	845.1	$	28.2	$	873.3	$	678.2	$	28.3	$	706.5

	Nine Months Ended February 28, 2026						Nine Months Ended February 28, 2025
	Third-Party		Inter-segment		Total		Third-Party		Inter-segment		Total
	Sales		Sales		Sales		Sales		Sales		Sales
Parts Supply	$	1,063.9	$	23.4	$	1,087.3	$	794.1	$	12.5	$	806.6
Repair & Engineering		724.4		56.2		780.6		662.3		64.3		726.6
Integrated Solutions		528.6		6.4		535.0		495.2		1.1		496.3
Expeditionary Services		63.1		—		63.1		74.4		—		74.4
	$	2,380.0	$	86.0	$	2,466.0	$	2,026.0	$	77.9	$	2,103.9

	Three Months Ended				Nine Months Ended
	February 28,				February 28,
	2026		2025		2026		2025
Capital expenditures:
Parts Supply	$	0.4	$	0.1	$	0.7	$	0.2
Repair & Engineering		4.3		6.3		13.2		14.2
Integrated Solutions		2.4		0.9		6.5		3.9
Expeditionary Services		0.9		0.6		2.7		5.1
Corporate and discontinued operations		0.5		0.6		1.5		1.3
	$	8.5	$	8.5	$	24.6	$	24.7

	Three Months Ended				Nine Months Ended
	February 28,				February 28,
	2026		2025		2026		2025
Depreciation and amortization: 1
Parts Supply	$	7.7	$	2.5	$	16.2	$	7.4
Repair & Engineering		7.8		7.1		21.1		20.1
Integrated Solutions		4.8		4.7		13.9		13.7
Expeditionary Services		0.4		0.4		1.3		1.2
Corporate and discontinued operations		3.2		4.9		11.9		14.7
	$	23.9	$	19.6	$	64.4	$	57.1

¹ Includes amortization of stock-based compensation.

	Three Months Ended				Nine Months Ended
	February 28,				February 28,
	2026		2025		2026		2025
Earnings (Loss) from joint ventures:
Parts Supply	$	1.3	$	0.7	$	4.9	$	1.3
Repair & Engineering		0.1		(0.2)		(0.6)		3.4
	$	1.4	$	0.5	$	4.3	$	4.7

	February 28,		May 31,
	2026		2025
Total assets:
Parts Supply	$	1,154.6	$	818.8
Repair & Engineering		1,368.2		1,155.2
Integrated Solutions		597.6		620.8
Expeditionary Services		86.5		79.0
Corporate and discontinued operations		125.6		170.8
	$	3,332.5	$	2,844.6

	February 28,		May 31,
	2026		2025
Investments in joint ventures:
Parts Supply	$	13.3	$	8.4
Repair & Engineering		29.3		23.9
	$	42.6	$	32.3