AAR Corp.'s expanding MRO capacity, strong liquidity and low debt underscore its growth outlook, making the stock a compelling aerospace pick.
Here is how AAR (AIR) and Safran SA (SAFRY) have performed compared to their sector so far this year.
AAR has divested its landing gear business, which has been a margin dragger for years. With the divestiture, management intends to expand margins. The Parts Supply business continues to grow significantly while being more margin accretive; however, the same hasn't been the case with the MRO business. The reason the MRO business is lagging in performance is due to the fact that most of AIR's hangars are at full capacity, and for further growth, the firm must expand capacity.
| Aerospace & Defense Industry | Industrials Sector | John McClain Holmes III CEO | XSTU Exchange | US0003611052 ISIN |
| US Country | 5,700 Employees | - Last Dividend | 24 Feb 1998 Last Split | 1 Jan 1988 IPO Date |
AAR Corp. functions globally, serving the commercial aviation, government, and defense sectors with a broad spectrum of products and services. The company operates through two primary segments: Aviation Services and Expeditionary Services. Founded in 1951, AAR Corp. has its headquarters in Wood Dale, Illinois, holding a prominent position in the fields of aviation support and manufacturing services for both military and humanitarian missions.
This segment deals with the leasing and selling of new, overhauled, and repaired engine and airframe parts and components, in addition to aircrafts. AAR Corp. caters to the aviation industry by offering tailor-made programs focused on component inventory management and repair. These services extend to cover warranty claim management and comprehensive outsourcing solutions for engine and airframe parts and components. Additionally, fleet management and operations, material planning, logistics, and repair and overhaul services for U.S. Department of Defense and foreign governments are provided under this category. The company also specializes in airframe maintenance, structural repairs, avionics services, and more, operating through multiple maintenance facilities and an overhaul facility.
Dedicated to supporting military and humanitarian efforts, this segment offers manufacturing and repair services for transportation pallets, containers, and shelters designed for tactical deployment. The products include, but are not limited to, armories, supply and parts storage, refrigeration systems, and sleeping quarters. AAR Corp. develops solutions for water treatment and tactical operation centers, ensuring versatile and robust containment and logistic capabilities for a wide range of missions. Moreover, the company engages in providing specialized command and control system integration and engineering services, highlighting its commitment to innovative defense and humanitarian solutions.