Aar Corp Stock Price, News & Analysis

AAR (NYSE: AIR) reported strong Q3 FY2025 results with sales reaching $678.2 million, a 20% increase year-over-year. The company achieved adjusted diluted EPS of $0.99, up 16%, and adjusted EBITDA of $81 million, a 39% increase with margin expanding to 12.0%.

Key segment performance showed Parts Supply sales up 12% and Repair & Engineering segment sales increasing 53% year-over-year. However, the company reported a GAAP net loss of $8.9 million due to a $63.7 million pre-tax charge related to the planned divestiture of its Landing Gear Overhaul business for $51 million.

Notable new business wins include exclusive distribution agreements with Chromalloy for PW4000 PMA parts and with Unison for DLA parts, plus agreements with Cebu Pacific Air for engine services and Cathay Pacific for Trax software. The company's net leverage improved from 3.58x to 3.06x over the past year.

AAR CORP. (NYSE: AIR) has extended its exclusive Serviceable Engine Products agreement with FTAI Aviation through 2030, continuing their collaboration on CFM56 used serviceable material (USM). The partnership, initially established in 2020, involves AAR managing the teardown, repair, marketing, and sales of spare parts from FTAI's growing CFM56 engine pool of over 450 engines.

AAR has strengthened its capabilities by acquiring five additional global component repair facilities since the original agreement. This expansion enhances AAR's ability to support maintenance, repair, and overhaul of engine components. The collaboration serves the global aviation aftermarket and FTAI's Module Factory™, which specializes in modular repair and refurbishment of CFM56-7B and CFM56-5B engines.

AAR (NYSE: AIR) has expanded its Board of Directors from 11 to 12 positions with the election of Hema Widhani, effective March 18, 2025. Widhani, currently serving as Prudential Financial's Chief Digital and Marketing Officer, brings over 20 years of experience in digital, marketing, and customer experience.

In her current role, Widhani manages Prudential's enterprise digital and customer experience portfolio and leads several Generative AI initiatives for the company's global insurance and retirement business. Her previous experience includes leadership roles at E*TRADE, Citibank, and the WPP group.

Widhani holds an MBA from Carnegie Mellon University and a Master of International Business from Lancaster University. Her appointment aligns with AAR's focus on digital transformation and customer engagement strategies.

Trax, a leading provider of paperless aviation maintenance software, has been selected by Cathay Pacific to drive its Engineering Department's digital transformation. The partnership will implement Trax's web-based eMRO solution, cloud hosting services, and eMobility applications including AeroDox, VisualCheck, Line Control, TaskControl, and eContent Control.

The implementation aims to enable real-time, data-driven maintenance operations, providing instant access to critical operational data and improving coordination in a paperless environment. The solution will enhance airworthiness control, integrated planning, and streamline processes for the Hong Kong-based airline.

Keith Brown, Cathay's Director of Engineering, emphasized that Trax's solutions will modernize operations, improve coordination, and boost efficiency while supporting their commitment to safety, operational reliability, and innovation.

AAR Corp (NYSE: AIR) has scheduled the release of its third quarter fiscal year 2025 financial results on March 27, 2025, after the New York Stock Exchange trading session closes. The company will host a conference call at 4 p.m. Central time on the same day to discuss the results.

Interested parties can access a listen-only webcast and presentation slides through the provided weblink. Phone participants need to pre-register to receive dial-in details. A replay of the conference call will be available on-demand shortly after completion and remain accessible for approximately one year.

AAR Corp (NYSE: AIR) has secured a multi-year agreement with Cebu Pacific Air to provide nacelle maintenance, repair, and overhaul services for the airline's A320 fleet equipped with CFM56-5B engines. The work will be conducted at AAR's Component Services facility in Chonburi, Thailand.

This agreement expands AAR's existing relationship with Cebu Pacific, which already includes providing USM engine material for CFM56-5B engine overhauls and warranty management services through AAR's subsidiary Airinmar. The partnership aims to deliver maintenance quality and efficient turnaround times at competitive rates.

AAR CORP. (NYSE: AIR)'s Component Services facility in Amsterdam has achieved a significant milestone by being ranked as the #1 Best Source of Repair among all component facilities by the NATO Support and Procurement Agency (NSPA) and International Aerospace Management Company (IAMCO). The facility earned this recognition for its excellence in product quality, timely delivery, quality assurance, and component support for NATO's Airborne Warning and Control System (AWACS) fleet.

This marks the sixth time AAR has received this prestigious award, demonstrating consistent performance in supporting NATO's readiness mission. The recognition highlights AAR's competitive edge in providing cost-effective and efficient solutions for national and collective defense requirements through NSPA's procurement processes.

AAR CORP. (NYSE: AIR) has entered into an exclusive Distribution and License Agreement with Chromalloy's subsidiary BELAC for PMA high pressure turbine blades for PW4000 engine platforms. The multi-year contract will maintain guaranteed stock levels for in-demand T1 blades.

This agreement expands upon an existing partnership where AAR distributes BELAC's T1 and T2 turbine blades for the CF6-80C2 engine platform. The collaboration aims to enhance supply chain reliability and provide cost-saving solutions to AAR's global customer base while offering additional engine material options.

AAR CORP. (NYSE: AIR) has expanded its Supplier Capabilities Contract with Defense Logistics Agency (DLA) Aviation to include distribution support for select Unison parts. The multi-year agreement leverages AAR's exclusive distribution capabilities for sole source spare parts manufactured by Unison, supporting various military aircraft platforms.

This strategic expansion builds upon AAR's landmark achievement in 2022 when it became the first non-OEM awarded a 20-year base Supplier Capabilities Contract with the DLA. The partnership aims to provide comprehensive supply chain management support and reduce supply volatility through improved material availability for the Department of Defense and U.S. allies.