AAR Corp (NYSE: AIR) is an aviation services company that provides maintenance, repair, and overhaul (MRO) services, parts supply, and expeditionary solutions to commercial airlines and government defense customers. Revenue is generated across three segments: Parts Supply (approximately 40% of sales in FY2025), Repair & Engineering, and Integrated Solutions, with a smaller Expeditionary Services segment. Parts Supply consists of sales and leasing of used serviceable material (USM) and distribution of new OEM replacement parts. Repair & Engineering covers airframe MRO, component repair, painting, structural repairs, avionics installation, and FAA-designated PMA parts and DER repairs. Integrated Solutions serves both government and commercial markets from facilities in Florida, Utah, Connecticut, Belgium, and England. AAR divested its LGO business to GA Telesis in Q4 FY2025 for net proceeds of $48 million, recognizing a $71.1 million loss on the transaction. The company holds a multi-year exclusive agreement with FTAI Aviation for USM on the CFM56 engine platform through 2030, and holds U.S. Navy contracts supporting P-8A aircraft.

Revenue model

Transactional and long-term contract revenue across three segments. Parts Supply sells and leases USM and distributes OEM parts under formal distribution agreements. Repair & Engineering bills for airframe MRO, component repair, and proprietary PMA parts. Integrated Solutions operates under government and commercial contracts for aviation maintenance and support services.

Products and services

Used serviceable material (USM) sales and leasing; OEM aftermarket parts distribution; airframe MRO including major inspections, painting, structural repairs, and interior refurbishment; component repair for engine and airframe accessories; avionics service and installation; FAA Parts Manufacturer Approval (PMA) parts; designated engineering representative (DER) repairs; Expeditionary Services from Cadillac, Michigan facility.

Customers and end markets

Commercial airlines (narrow-body Airbus, Boeing, and Embraer regional aircraft) and U.S. government defense agencies including the U.S. Navy (P-8A aircraft program). Distribution contracts awarded from Unison, Chromalloy, and Ontic in FY2025. Exclusive USM agreement with FTAI Aviation on CFM56 engine platform through 2030.

Value-chain role

Aftermarket aviation services provider sitting between OEMs, airlines, and defense operators. Supplies parts (new and used), performs MRO on airframes and components, and manages government aviation support contracts. Also develops non-OEM PMA replacement parts approved under FAA regulations.

Geographic exposure

United States operations in Rockledge FL, Ogden UT, Jacksonville FL, Windsor CT, and Cadillac MI. International MRO and commercial services in Brussels Belgium and Crawley England. Sales offices in London, Paris, Rio de Janeiro, Tokyo, Shanghai, Singapore, and Dubai (as of FY2025 10-K filed 2025-07-22).

Source: SEC 10-K, filed 2025-07-22

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