• AAR is like the **AutoZone for airplanes**, providing aftermarket parts, components, and maintenance services for aircraft.
• AAR is like **Grainger for the aerospace and defense industry**, offering a comprehensive supply chain for MRO (Maintenance, Repair, and Overhaul) needs.

• Parts Supply & Distribution: Provides new and used aircraft parts and components to airlines, MROs, and government customers globally.
• Maintenance, Repair & Overhaul (MRO): Offers comprehensive maintenance, repair, and overhaul services for aircraft, engines, and components.
• Integrated Solutions & Supply Chain Management: Delivers complete supply chain management, logistics, and technical support services to optimize aviation operations.
• Expeditionary Services: Provides specialized support, including aircraft modifications, deployment services, and logistics, primarily for government and defense customers in challenging environments.

AAR (AIR) primarily sells to government entities and other companies (Business-to-Government and Business-to-Business).

Its most significant major customer is:

• U.S. Government

While AAR serves a diverse global customer base, including commercial airlines, cargo carriers, maintenance, repair, and overhaul (MRO) providers, and original equipment manufacturers (OEMs, aerospace and defense), its financial reports indicate that no single commercial company accounts for 10% or more of its consolidated net sales. Therefore, no other individual company is identified as a major customer.

• Honeywell International Inc. (Symbol: HON)
• Sifco Industries, Inc. (Symbol: SIF)
• GE Aerospace (Symbol: GE)
• RTX Corporation (Symbol: RTX)

John M. Holmes, Chairman, President and CEO

Mr. Holmes joined AAR in 2001 and was named President in 2017, Chief Executive Officer in 2018, and Chairman of the Board of Directors in 2023. He has grown the company through multiple acquisitions, including Airinmar, Premier Aviation, Trax, and Triumph Group's Product Support business. Prior to joining AAR, Mr. Holmes worked in investment banking and private equity. He also served as an Investment Banking Analyst at William Blair.

Sean M. Gillen, Vice President and Chief Financial Officer

Mr. Gillen was appointed Vice President and Chief Financial Officer of AAR in January 2019. Before joining AAR, he served as Vice President and Treasurer at USG Corporation. Prior to USG, Mr. Gillen spent nine years in investment banking with Goldman Sachs in their Global Industrials Group, where he gained experience in mergers and acquisitions, divestitures, corporate spin-offs, debt financing, and capital return programs.

Jessica A. Garascia, Senior Vice President, General Counsel, Chief Administrative Officer, and Secretary

Ms. Garascia joined AAR in 2020. Previously, she served as Deputy General Counsel at USG Corporation, and also held roles as Senior Corporate Counsel and Assistant General Counsel and Secretary, leading a team responsible for mergers and acquisitions, compliance, and financing.

Andrew Schmidt, Senior Vice President, AAR Digital Services and Trax

Mr. Schmidt currently serves as Senior Vice President of AAR Digital Services and Executive Vice President of Trax, a position he has held since 2023. He was instrumental in AAR's March 2023 acquisition of Trax. From 2011 to 2018, he was AAR's Senior Vice President of Intelligent Solutions, during which time AAR acquired and integrated Airinmar and launched PAARTS Store. His prior experience includes senior leadership roles at Seabury Capital, Macquarie Capital's Aviation and Aerospace Investments, and Oliver Wyman, where he led private investments for technology-based companies and drove strategic mergers and acquisitions.

Christopher A. Jessup, Chief Commercial Officer and Vice President

Mr. Jessup has served as Chief Commercial Officer and Vice President of AAR since June 2017. His previous roles at AAR include Chief Commercial Officer of the aviation services segment and Senior Vice President of airframe MRO services.

1. Intense Competition and Market Conditions: AAR operates in highly competitive markets for its aviation products and services, facing numerous domestic and international players. This intense competition can lead to pricing pressures, reduced profit margins, and potential loss of market share. Additionally, the company is significantly affected by the overall economic conditions and cyclicality of the commercial aviation industry, which can experience negative impacts from geopolitical events, high fuel prices, and weak economic conditions, leading to reduced demand for air travel and related services.
2. Dependence on Key Customers and Supply Chain Disruptions: AAR has a significant dependence on key customers, with some reports indicating that a substantial portion of its revenue comes from a concentrated customer base. The loss of a major customer or a reduction in their demand could materially impact AAR's financial performance. Furthermore, operational risks such as supply chain disruptions and equipment failures can lead to delays, increased costs, and reduced service quality, affecting the company's ability to deliver products and services efficiently.
3. Regulatory Changes: The aviation industry is heavily regulated, and changes in regulations can significantly impact AAR's operations and profitability. New safety standards or environmental regulations, for example, could necessitate substantial investments in new equipment or processes, increasing costs and potentially diminishing competitiveness.

• Direct competition from aircraft Original Equipment Manufacturers (OEMs): Major aircraft manufacturers, such as Boeing (through Boeing Global Services) and Airbus (through Airbus Services), are aggressively expanding their aftermarket services. They leverage their proprietary data, intellectual property, and direct customer relationships to offer comprehensive services, including parts distribution, maintenance, modifications, and digital solutions. This strategy creates a formidable competitive landscape for independent MRO providers and parts distributors like AAR, as OEMs seek to capture a larger share of the lucrative aftermarket services market.
• Disruption from additive manufacturing (3D printing) of aircraft parts: The increasing sophistication and certification of additive manufacturing for aerospace components represent a clear emerging threat to traditional parts supply chains. As the technology matures and becomes more widely adopted for both repair and new production of aircraft parts, airlines or specialized MROs may gain the capability to print certain components on-demand. This could reduce reliance on traditional parts distributors and extensive inventory management services, impacting AAR's core parts and supply chain solutions business model.
• Advanced data analytics and artificial intelligence for predictive maintenance: The adoption of sophisticated data analytics and AI by airlines and OEMs for predictive maintenance is fundamentally changing how aircraft maintenance is managed. By accurately forecasting component failures and optimizing maintenance schedules, these technologies aim to reduce unscheduled repairs, optimize spare parts inventory, and potentially shift demand away from traditional reactive or fixed-interval MRO services. Independent providers like AAR must significantly adapt their service offerings and integrate these technologies to remain competitive.

AAR (symbol: AIR) operates in several key segments within the aviation industry, primarily focusing on Aviation Services and Expeditionary Services, which encompass Maintenance, Repair, and Overhaul (MRO), Parts Supply, Integrated Supply Chain Solutions, and services for government and defense customers.

Addressable Markets:

• Aircraft Maintenance, Repair, and Overhaul (MRO) Market: The global aircraft MRO market size was estimated at USD 90.85 billion in 2024 and is projected to reach USD 120.96 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.75% from 2025 to 2030. Additionally, the global aerospace and defense MRO market was estimated at USD 135.7 billion in 2024 and is projected to reach USD 187.3 billion by 2030, growing at a CAGR of 5.6% from 2025 to 2030.
• Aircraft Aftermarket Parts Market: The global aircraft aftermarket parts market size was valued at USD 48.71 billion in 2024 and is projected to grow from USD 54.40 billion in 2025 to USD 93.52 billion by 2032, exhibiting a CAGR of 8.0% during the forecast period. For commercial aircraft aftermarket parts specifically, the global market size reached USD 44.3 billion in 2024 and is expected to reach USD 72.3 billion by 2033.
• Military Aviation Services Market: The global market size for military aviation services is projected to be approximately USD 40 billion in 2023, and it is expected to grow at a CAGR of 5.8%, reaching around USD 63 billion by 2032.

Expected Drivers of Future Revenue Growth for AAR (AIR)

Over the next 2-3 years, AAR (NYSE: AIR) is expected to drive future revenue growth through several key initiatives and market trends, including strategic acquisitions, expansion of its parts supply network, enhanced repair and engineering capabilities, increased adoption of digital solutions, and growth in government contracts.

1. Strategic Acquisitions and Synergies

   AAR's recent acquisitions, notably the Triumph Product Support business and HAECO Americas, are significant revenue drivers. The integration of the Product Support business has already contributed to increased sales and margin expansion, with AAR expecting further synergies to be realized. The acquisition of HAECO Americas, announced in November 2025, is anticipated to immediately expand AAR's maintenance footprint and accelerate growth within its Repair & Engineering segment. Additionally, the acquisition of Aerostrat aims to further expand capabilities, supporting a positive long-term outlook.

2. Growth in Parts Supply

   The company anticipates gaining market share in its Parts Supply segment, which is its largest and most profitable business. This growth is fueled by strong bookings, new distribution agreements that are driving market share gains, and increasing availability of Used Serviceable Material (USM) assets. AAR has also secured key long-term agreements, such as the extension of its multi-year agreement with FTI to exclusively distribute CFM56 engine material through 2030, and a supply chain alliance with the US defense logistics agency.

3. Expansion and Efficiency in Repair & Engineering

   Demand for AAR's heavy maintenance and component repair capabilities remains robust. Future revenue growth in this segment will be supported by the rollout of new hangar capacity in fiscal year 2026, including facilities in Miami and Oklahoma City, which are expected to contribute to both growth and margin expansion. Furthermore, efficiency gains from initiatives like the paperless hangar program are projected to enhance profitability in this segment.

4. Increased Adoption and Expansion of Digital Solutions

   AAR's Trax software solution is a high-margin growth channel that continues to secure new contracts with major airlines like Cathay Pacific, Delta, Amerijet International Airlines, and SIA Engineering Company. Management foresees significant revenue growth from Trax, with the potential for license fees to increase substantially. The company expects Trax to maintain its growth trajectory by winning new business and upgrading existing customers to its latest offerings.

5. Diversification and Wins in Government Contracts

   AAR has reported strong performance in its government integrated solutions activities and possesses a robust pipeline of new opportunities within the government sector. Diversifying through government contracts is a key part of AAR's strategy to navigate aviation market cycles. Recent successes include a joint venture awarded a U.S. Navy contract, underscoring the potential for continued revenue growth from this segment.

Share Repurchases

• AAR repurchased $10.1 million of its common shares in the fourth quarter of fiscal year 2025.
• As of May 31, 2025, $42.5 million remained on AAR's share repurchase program.
• A $150 million share repurchase program was renewed in December 2021, with $52.5 million remaining as of November 30, 2024.

Share Issuance

• AAR announced a public offering of 3,000,000 shares of common stock at $83.00 per share in September 2025.
• The estimated net proceeds from this offering are approximately $239.0 million, potentially increasing to $274.9 million if underwriters fully exercise their option for an additional 450,000 shares.
• Proceeds are intended to repay outstanding borrowings under its unsecured revolving credit facility and for general corporate purposes, including potential future acquisitions.

Outbound Investments

• AAR completed the acquisition of Triumph Group's Product Support business for $725 million in fiscal year 2025 (completed March 1, 2024).
• AAR acquired Trax USA Corp. for $120 million, expanding its software solutions for aircraft MRO and fleet management (completed March 20, 2023).
• AAR completed the divestiture of its Landing Gear Overhaul business, which generated $48 million in cash in fiscal year 2025.

Capital Expenditures

• Capital expenditures were $30 million in fiscal year 2023 and $30 million in fiscal year 2024.
• AAR launched two hangar expansions in Miami and Oklahoma City in fiscal year 2025.
• The company plans to continue investing in digital technologies and expanding its global footprint.