AAR Corp

AAR CORP is an aviation aftermarket company that supplies aircraft parts, performs maintenance and component repair, and runs outsourced fleet and logistics programs for commercial airlines and government customers. Its operations span four segments—Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services—combining parts distribution/USM trading with FAA-certificated repair stations and program-based services. The company also sells aviation software through Trax, which supports airline and MRO maintenance and operations workflows. AAR’s model is built around sourcing and managing aviation assets and inventory, executing regulated repair work, and delivering multi-year, performance-based support contracts.

18,8 %

5,7 %

+19,0 %

2.84

1.24

— AAR Corp
%
Parts Supply40% Sales of USM (used aircraft/engine/airframe parts) and distribution of new OEM-supplied replacement parts, including exclusive product-line relationships.
Repair & Engineering32% Airframe MRO and component repair/overhaul services delivered through FAA/EASA/TCCA certificated repair stations.
Integrated Solutions20% Fleet management, performance-based supply chain/logistics programs for defense customers, flight-hour component programs, and Trax software solutions.
Expeditionary Services8% Products and services supporting movement of equipment and personnel for U.S./foreign governments and NGOs in deployed environments.

AAR sells to commercial aviation customers such as airlines, aircraft operators, lessors, and independent MRO providers...

  • Commercial airlines and aircraft operatorsprimary

    Buy new parts distribution, USM, flight-hour component programs, and MRO services to reduce downtime and manage maintenance costs.

  • U.S. Government (DoD/DoS and related agencies)primary

    Procure customized, performance-based supply chain logistics and aircraft support programs, plus expeditionary services tied to mission readiness.

  • Foreign governments and defense operatorssecondary

    Purchase logistics support, parts, and aircraft sustainment services similar to U.S. government programs, often via multi-year contracts.

  • MRO providers and aerospace service companiessecondary

    Buy distributed OEM parts, components, and software (Trax) to support their own maintenance operations and customer programs.

  • OEM partners (authorized distribution relationships)emerging

    Use AAR as a channel to reach global operators through exclusive or authorized distribution for specific product lines and markets.

AAR operates globally, with sales to foreign customers representing 34.2% of consolidated sales in fiscal 2025,...

  • •Global sales base; foreign customers were 34.2% of FY2025 sales
  • •12 FAA-certificated repair stations across US, Canada, Asia, Europe
  • •EASA/TCCA certifications broaden addressable customer base
  • •Thailand facility added via Product Support acquisition
  • •International offices/facilities support parts distribution and programs
  • •Cross-border operations add regulatory, logistics, and FX complexity

AAR is optimizing its portfolio toward core, higher-margin aftermarket offerings, including divesting the LGO business...

01
Expand and modernize Airframe MRO capacitymedium-term

More capacity and efficiency supports demand and improves turnaround economics.

02
Grow Parts Supply distribution and USM programsshort-term

Authorized distribution and platform-specific USM agreements drive volume and customer stickiness.

03
Scale digital offerings and integrated solutionsmedium-term

Software and performance-based programs can deepen customer integration and support margin mix improvement.

04
Increase penetration in government sustainment programsmedium-term

Multi-year contracts can provide backlog visibility and diversify demand versus commercial cycles.

AAR’s results are tied to commercial aviation utilization and maintenance cycles; downturns in flight activity can...

high

Competitive pressure across parts, MRO, and expeditionary markets

OEMs, airlines with in-house MRO, and larger competitors may underprice or bundle offerings, pressuring margins and share.

Materiality
high
high

International operating risk

A meaningful portion of sales is to foreign customers and the company operates facilities abroad, increasing exposure to country-specific disruptions and compliance requirements.

Scope
34.2% of FY2025 consolidated sales derived from sales to foreign customers
Materiality
high
medium

Government contracting execution and award risk

Bid protests, contract modifications, set-asides, and agency decisions to insource work can delay or reduce program earnings.

Materiality
medium
medium

Cybersecurity threats and IT disruption

Ransomware, denial-of-service, and state-affiliated threats could disrupt operations and increase compliance costs, particularly given defense-customer requirements.

Materiality
medium
medium

Asset/platform concentration in engines and related parts

If demand declines or a platform is redesigned/replaced or faces technical issues, asset values and sale/lease rates can fall, impairing returns on inventory/assets.

Materiality
medium
Inventory and rotable asset valuation (LCNRV) and write-downs
Affects cost of sales, gross margin, and working capital
Business combinations (purchase price allocation, intangibles, goodwill)
Affects operating expenses, amortization, and balance sheet composition
Goodwill impairment testing
Non-cash impairment charges can materially affect operating income
Revenue recognition across parts sales and service/program work
Affects revenue timing, contract assets/liabilities, and margins

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: 11/08/2026