AAR Corp. (NYSE: AIR) announced that long‑time chief financial officer Sean Gillen will step down, with his last day at the company on December 19, 2025. The company confirmed that Vice President of Financial Operations Sarah Flanagan will assume the role of interim CFO effective December 11, 2025, ensuring a seamless transition as Gillen remains in place to hand over responsibilities.
Flanagan joined AAR in 2012 and has progressed through a series of senior finance positions, most recently serving as Group CFO for the company’s largest business segment. She has been an officer of the company since 2017 and brings deep institutional knowledge that is expected to preserve continuity in financial strategy and reporting during the search for a permanent replacement.
The departure comes as AAR reports strong momentum in its core operations. In the first quarter of fiscal 2026, the company posted sales of $740 million, up 12% year‑over‑year, and adjusted diluted earnings per share of $1.08, a 27% increase from the prior year. Adjusted EBITDA rose to $87 million, with the margin expanding to 11.7% from 11.3% in the previous year, driven by higher volume and profitability in the Parts Supply and Repair & Engineering segments and the positive contribution from recent acquisitions such as Product Support and Aerostrat.
Management emphasized that Gillen’s exit is not related to any financial or operational issues; he is leaving to pursue an opportunity outside the aviation industry. The company’s leadership highlighted the importance of maintaining strong financial stewardship amid ongoing integration and margin‑expansion initiatives, and noted that the interim appointment is part of a broader strategy to keep the organization focused on high‑growth, high‑margin businesses.
The interim CFO transition is expected to have a minimal short‑term impact on AAR’s operations, as the company has already begun a structured search for a permanent CFO. Investors have reacted with caution, reflecting the typical uncertainty that accompanies a change in senior financial leadership, but the company’s recent performance and the continuity provided by an internal successor mitigate concerns about operational disruption.
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