AAR Corp (NYSE: AIR) announced a reorganization of its business segments and plans to wind down its Legacy Commercial Programs division, according to a company statement.

Beginning in the fourth quarter of fiscal 2026, the aviation services provider will operate under four segments: Parts Supply, Repair Engineering and Software, Government Solutions, and Legacy Commercial Programs. The restructuring consolidates previous operations while separating the Legacy Commercial Programs business that the company intends to discontinue.

The Legacy Commercial Programs segment generated $252.4 million in sales for the 12 months ended February 28, 2026, with a GAAP operating loss of $0.2 million and adjusted operating income of $5.0 million. The segment held net assets of approximately $160 million as of February 28, 2026.

"Legacy Commercial Programs requires significant asset pools and no longer meets our capital return thresholds," said John M. Holmes, AAR's Chairman, President and CEO. The company expects the wind-down process to take three to four years, during which it anticipates periodic gains from asset divestments.

AAR stated it plans to redeploy personnel from the Legacy Commercial Programs division to other growth initiatives within the company. The Wood Dale, Illinois-based company operates in over 20 countries and serves commercial and government customers.

The company maintained its guidance for the fourth quarter and fiscal year 2026, ending May 31, 2026, stating the segment realignment and wind-down plans do not affect current projections. AAR filed a Form 8-K with recast segment financial information for comparison purposes.