AAR CORP. (NYSE: AIR) is a leading provider of aviation services, specializing in aftermarket support for commercial and government operators, maintenance, repair, and overhaul (MRO) facilities, and original equipment manufacturers (OEMs). The company offers a wide range of products and services, including inventory management, component repair, airframe maintenance, and mobility solutions. AAR serves a global customer base, including commercial airlines, government agencies, and foreign governments, with operations spanning North America, Europe, Africa, and Asia.
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Parts Supply - Provides new parts distribution and used serviceable material (USM) for commercial and government customers, supporting over 30 product lines and 300 Federal Supply Class codes.
- New Parts Distribution - Supplies OEM-certified parts for aviation needs.
- Used Serviceable Material (USM) - Offers cost-effective, high-quality used parts for aircraft maintenance.
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Integrated Solutions - Delivers supply chain management and flight hour component inventory and repair programs for commercial and government customers, including warranty claim management.
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Repair & Engineering - Offers maintenance, repair, and overhaul (MRO) services, including airframe maintenance, component repair, landing gear overhaul, and engineering solutions for commercial and military aircraft.
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Expeditionary Services - Designs and manufactures mobility products such as transportation pallets, containers, and shelters, primarily for military and humanitarian missions.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
John M. Holmes ExecutiveBoard | Chairman, President, and Chief Executive Officer | None | Joined AAR in 2001; became CEO in 2018 and Chairman in 2023. Previously held roles such as COO and Group VP of Aviation Services. Key leader in strategy and capital allocation. | View Report → |
Christopher A. Jessup Executive | Senior Vice President and Chief Commercial Officer | None | Joined AAR in 2008. Held leadership roles in MRO Services and became Chief Commercial Officer in 2017. Focuses on global sales and commercial strategy. | |
Eric S. Pachapa Executive | Vice President, Controller, and Chief Accounting Officer | None | Joined AAR in 2015 as Controller. Promoted to VP and Chief Accounting Officer in 2016. Previously worked at Glanbia plc and Ernst & Young. | |
Jessica A. Garascia Executive | Senior Vice President, General Counsel, Chief Administrative Officer, and Secretary | None | Joined AAR in 2020 as General Counsel. Promoted to Chief Administrative Officer in 2022. Previously Deputy General Counsel at USG Corporation. | |
Sean M. Gillen Executive | Senior Vice President and Chief Financial Officer | None | Joined AAR in 2019. Previously VP and Treasurer at USG Corporation and VP at Goldman Sachs. Oversees financial operations and compliance. | |
Anthony K. Anderson Board | Director | Director at Avery Dennison Corp., Exelon Corp., and Marsh & McLennan Companies | Director since 2012. Former Vice Chair at Ernst & Young. Expertise in accounting, finance, and corporate governance. Will not stand for re-election at the 2024 Annual Meeting. | |
Billy J. Nolen Board | Director | Chief Regulatory Affairs Officer at Archer Aviation Inc. | Director since 2023. Former Acting Administrator of the FAA. Expertise in aviation safety and regulatory affairs. | |
Duncan J. McNabb Board | Director | Co-Founder and Managing Partner of Ares Mobility Solutions Inc. | Director since 2017. Retired U.S. Air Force General. Former Commander of U.S. Transportation Command. Expertise in logistics and government contracting. | |
Ellen M. Lord Board | Director | Director at Parsons Corporation | Director since 2021. Former Under Secretary of Defense for Acquisition and Sustainment. Expertise in defense, aerospace, and strategic planning. | |
Jennifer L. Vogel Board | Director | Director at Sun Country Airlines Holdings, Inc. | Director since 2016. Former General Counsel at Continental Airlines. Expertise in governance, M&A, and risk management. | |
John W. Dietrich Board | Director | Director at First Horizon Corp.; Chairman of NDTA; Board Member at IATA, A4A, and Liberty City Optimist Club | Director since 2023. Former CEO of Atlas Air Worldwide. Expertise in aviation, logistics, and risk management. | |
Marc J. Walfish Board | Lead Independent Director | Founding Partner of Merit Capital Partners | Director since 2003. Founding Partner of Merit Capital Partners, a mezzanine investor. No other public company directorships. | |
Peter Pace Board | Director | None | Director since 2011. Retired General, U.S. Marine Corps. Former Chairman of the Joint Chiefs of Staff. Expertise in leadership and government affairs. | |
Robert F. Leduc Board | Director | Director at JetBlue Airways Corporation and Howmet Aerospace, Inc.; Advisor at Advent International | Director since 2020. Former President of Pratt & Whitney and Sikorsky Aircraft. Expertise in aerospace and talent management. |
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Can you elaborate on the potential conflicts that might arise with your OEM partners, like Unison, as you expand into PMA parts manufacturing, and how you plan to manage these relationships moving forward?
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Given that Parts Supply EBITDA margins decreased due to lower-margin whole asset sales, what strategies are you implementing to address margin compression in this segment?
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With the recent uptick in availability of whole assets for your USM business, how sustainable do you believe this trend is, and what risks do you see in relying on situational asset availability for growth?
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Considering the questions around the long-term viability of low-cost carriers and your current limited exposure to this segment, how might industry shifts impact your commercial sales, and what is your strategy to mitigate potential risks?
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In light of rising interest rates and your current net leverage ratio, how are you balancing your deleveraging objectives with your appetite for future M&A opportunities, and what is your long-term view on optimal net leverage levels?
Research analysts who have asked questions during AAR earnings calls.
Scott Mikus
Melius Research
5 questions for AIR
Louie DiPalma
William Blair
4 questions for AIR
Kenneth Herbert
RBC Capital Markets
3 questions for AIR
Michael Ciarmoli
Truist Securities, Inc.
3 questions for AIR
Michael Leshock
KeyBanc Capital Markets
3 questions for AIR
Joshua Sullivan
The Benchmark Company
2 questions for AIR
Ken Herbert
RBC Capital Markets
2 questions for AIR
Samuel Struhsaker
Truist Securities, Inc.
2 questions for AIR
Louis Dipalma
William Blair & Company
1 question for AIR
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The company has established distribution and supply agreements for both new parts and used serviceable material (USM) with this entity, which is an OEM supplier. These agreements are part of the company's strategy to enhance its commercial market offerings. | |
MTU Maintenance | The company has entered into distribution and supply agreements with this entity, which is an OEM supplier, to support its commercial market activities. |
Ontic | The company has secured distribution and supply agreements with this OEM supplier to expand its offerings in the commercial market. |
Cebu Pacific | The company has been awarded distribution and supply agreements with this airline, enhancing its commercial market presence. |
ASL Airlines | The company has been awarded a multi-year, flight-hour component support contract with this airline, which is part of its commercial programs activities. |
The company acquired the Product Support business from this entity, which is a leading global provider of specialized MRO capabilities for critical aircraft components in the commercial and defense markets. This acquisition enables the company to scale its component services and expand its footprint in the Asia-Pacific region. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
U.S. Department of Defense, U.S. Department of State, other U.S. government agencies, and contractors | Purchases aircraft sustainment and flight operations MRO | All | $687.6M (FY25; 24.7% of total sales ), $40.0M in A/R as of May 31, 2025. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Triumph Group, Inc. Product Support Business | 2024 | AAR CORP. completed the acquisition on March 1, 2024, for a net purchase price of $720.0 million, funded through $550 million in 6.75% Senior Notes due 2029 plus a Revolving Credit Facility; the deal enhances AAR’s specialized MRO capabilities and expands its footprint in the Asia-Pacific region with key assets such as proprietary DER repairs and PMA parts, and intangible assets including customer relationships and developed technology. |
Trax USA Corp. | 2023 | The acquisition, completed on March 20, 2023, was executed for $120 million in cash plus up to $20 million in contingent consideration tied to revenue targets and employee retention; funded by proceeds from AAR’s Revolving Credit Facility and cash on hand, the deal strategically expands AAR’s aviation aftermarket and MRO software offerings, supporting approximately 5,000 aircraft operations. |
Recent press releases and 8-K filings for AIR.
- AAR CORP. has signed a new multi-year defense distribution agreement with AmSafe Bridport, a TransDigm company.
- Under this agreement, AAR will become the exclusive KC-46 and C-40 platform distributor for direct and indirect sales to the global defense and military aftermarket.
- This distribution includes sales to the United States Defense Logistics Agency (DLA), United States Armed Services, and foreign militaries, such as the Japanese defense market.
- The agreement further diversifies AAR's defense distribution portfolio to include cargo handling products and enables enhanced customer service through intracompany coordination on government contracts.
- Automated Industrial Robotics Inc. (AIR) has acquired Silicon Valley-based Owens Design, a leading developer of custom automation solutions for high-technology companies.
- The acquisition, advised by Audacity IB, significantly enhances AIR's presence in the high-growth semiconductor industry and allows for the application of Owens Design's expertise to other key markets like medical products and pharmaceuticals.
- Following the transaction, AIR now has over 530 employees and a global automation hub footprint of over 400,000 square feet.
- The terms of the transaction were not disclosed.
- Automated Industrial Robotics Inc. (AIR) acquired Owens Design, a Fremont, California-based industrial automation company, on August 18, 2025.
- This acquisition significantly enhances AIR's presence in the high-growth semiconductor industry and allows for the application of Owens Design's specialized expertise to other key markets like medical products and pharmaceuticals.
- The transaction was funded by an additional investment from an Ares Management Private Equity fund and an equity investment from the Owens Design leadership team.
- Following the acquisition, AIR's global footprint expands to over 530 employees and an automation hub footprint exceeding 400,000 square feet.
- AAR CORP. priced an add-on offering of $150 million aggregate principal amount of 6.750% senior notes due 2029 on August 11, 2025, with the offering expected to close on August 14, 2025.
- The Additional Notes were issued at a price of 102.000% of their principal amount, resulting in a yield to maturity of 6.119%.
- These notes mature on March 15, 2029, and bear interest at 6.750% per annum, payable semiannually.
- The new notes are part of the same series as the previously issued $550.0 million of 6.750% senior notes due 2029, bringing the total aggregate principal amount for this series to $700.0 million.
- The company intends to use the net proceeds from the offering to repay outstanding borrowings under its unsecured revolving credit facility and cover associated fees and expenses.
- AAR CORP. (NYSE: AIR) has acquired Aerostrat, a leading long-range maintenance planning software company.
- The purchase price for Aerostrat was $15 million, with potential contingent consideration of up to an additional $5 million.
- This acquisition immediately expands the reach of AAR's software offerings and enhances the enterprise resource planning (ERP) capabilities of its Trax subsidiary.
- Aerostrat's flagship tool, Aerros, provides long-range heavy maintenance planning solutions and currently supports more than 5,000 aircraft, complementing Trax's existing ERP and line maintenance applications.
- AAR CORP outlines its focused transformation strategy aimed at streamlining core aviation aftermarket services through margin expansion, enhanced transparency, and a disciplined portfolio approach.
- The presentation highlights strategic acquisitions, including Trax and Product Support, which are expected to deliver cost synergies and drive sales and adjusted EBITDA growth.
- AAR Corp has signed a Supply Chain Alliance charter with the U.S. Defense Logistics Agency Aviation’s Supply Center in Richmond, Virginia, making it the agency’s first Supply Chain Alliance partner.
- The agreement aims to enhance operational efficiency and strategic readiness by centralizing contract quotes, awards, and execution to better support the nation’s warfighter.
- AAR Corp and KIRA Aviation Services have established KALS LLC, a joint venture formed under the SBA Mentor-Protégé Program to meet Department of Defense needs.
- KALS LLC was awarded an E-6B Mercury pilot training contract by the U.S. Navy, demonstrating the venture's role in critical national defense training.
- The contract work will be performed in Oklahoma City through March 2027, ensuring ongoing in-flight training and currency support for Naval Aviators.
- AAR CORP sold its non-core Landing Gear Overhaul business to GA Telesis for $51 million as part of its strategic portfolio optimization efforts.
- The transaction closed on April 3, 2025, with net proceeds of approximately $48 million after selling costs and working capital adjustments.
- The divestiture supports the company’s focus on growing its core aviation aftermarket services to drive targeted growth and margin expansion.
- Record Q3 sales of $678 million and adjusted EBITDA of $81.2 million representing a 20% and 39% increase, respectively, compared to Q3 FY24.
- Segment performance showed Parts Supply up 12% with sales of $270.7 million, and Repair & Engineering up 53% with sales of $215.9 million; Integrated Solutions sales declined slightly.
- Q4 guidance projects mid-single digit sales growth, adjusted operating margins between 9.7% – 9.9%, and a consistent net interest expense of approximately $18 million, with net leverage reduced sequentially to 3.06x.