AAR Corp. (AIR): history, ownership, mission, how it works & makes money

A Brief History of AAR Corp. (AIR)

Founding and Early Years

AAR Corp. was founded in 1955 by David A. Storch in New York City. The company initially focused on providing parts and services for the aviation industry.

Company Growth and Expansion

In 1975, AAR Corp. became a publicly traded company, listing on the New York Stock Exchange under the ticker symbol AIR. By the late 1980s, AAR expanded its operations internationally, establishing offices in Europe and Asia.

Acquisitions and Diversification

AAR Corp. has strategically acquired several companies to enhance its service offerings. Notable acquisitions include:

• 2000: Acquisition of Oxford Aviation, enhancing MRO services.
• 2007: Purchase of Stafford Aviation, expanding military support services.
• 2010: Acquired Airinmar to bolster component repair capabilities.

Financial Performance

As of the fiscal year ending May 31, 2023, AAR Corp. reported revenues of $1.56 billion, a year-over-year increase of 8%. The operating income stood at $138 million with a net profit of $112 million.

Market Position and Services

AAR Corp. operates in two primary segments:

• Airlift Services: The company provides logistics, transportation, and maintenance services to military and commercial customers.
• Supply Chain Management: AAR offers parts supply and repair services, with a focus on aerospace, defense, and government contracts.

Global Presence

AAR Corp. has a significant global footprint, with operations in over 20 countries. The company employs approximately 6,500 personnel across its facilities.

Recent Developments

In 2022, AAR Corp. announced a multi-year contract with the U.S. Department of Defense valued at $250 million to provide logistics support. The company also expanded its MRO capabilities in Miami, Florida, with an investment of $10 million.

Financial Summary Table

Future Outlook

Analysts project growth for AAR Corp. attributable to increased defense spending and a resurgence in commercial aviation post-pandemic. The company is expected to focus on expanding its global supply chain solutions, targeting an annual revenue growth rate of 5-7% over the next five years.

A Who Owns AAR Corp. (AIR)

Overview of Ownership

AAR Corp. (AIR) is publicly traded on the New York Stock Exchange under the ticker symbol AIR. As of the latest data, the ownership of AAR Corp. includes a mix of institutional and retail investors.

Shareholder Breakdown

The following table outlines the percentage ownership structure of AAR Corp. as of the end of the third quarter of 2023:

Major Institutional Shareholders

The following table lists the top institutional shareholders of AAR Corp. as of September 2023:

Insider Ownership

• John M. McMullen (CEO) - 1.5% ownership
• David P. Storch (Chairman) - 1.0% ownership
• Other executives and board members - 1.7% ownership combined

Recent Share Performance

As of October 6, 2023, AAR Corp. had a market capitalization of approximately $1.06 billion. The stock price was trading at around $64.25, reflecting a year-to-date increase of approximately 23%.

Financial Performance

For the fiscal year ending May 31, 2023, AAR Corp. reported total revenues of $1.76 billion, a year-over-year increase of 15%. The net income was reported at $72 million, representing an increase of 10% from the previous year.

Stockholder Meetings

Annual stockholder meetings are typically held in October, where shareholders can discuss company performance and elect members to the board of directors.

AAR Corp. (AIR) Mission Statement

Overview of AAR Corp.

AAR Corp. (AIR), established in 1955, is a global leader in aviation services and defense. The company operates in various sectors, primarily providing extensive support to commercial aviation and government services.

Core Mission Statement

The mission statement of AAR Corp. is to deliver high-quality aviation and defense solutions that enhance customer satisfaction while ensuring operational excellence. AAR aims to be a trusted partner for its clients by leveraging innovative technology and dedicated service.

Key Components of the Mission Statement

• Commitment to Quality
• Customer-Centric Approach
• Innovative Solutions
• Operational Excellence
• Global Reach and Reliability

Financial Performance Indicators

Strategic Objectives

• Expand service lines in both commercial and government sectors
• Invest in advanced technologies and training
• Enhance geographical presence and customer engagement
• Achieve sustainable growth through strategic partnerships

Recent Initiatives

AAR Corp. has undertaken several strategic initiatives aimed at improving its service offerings and operational efficiency, including:

• Launching a new maintenance and repair facility in Indianapolis
• Investing in sustainable aviation practices and eco-friendly technologies
• Expanding partnerships with military organizations to enhance defense capabilities

Market Analysis

As of October 2023, AAR Corp. operates in over 100 countries, catering to more than 1,000 customers globally. The company is well-positioned in the market with a revenue growth rate of approximately 11.25% year-over-year.

Customer Engagement Metrics

How AAR Corp. (AIR) Works

Business Overview

AAR Corp. (AIR) operates as a provider of aviation services and solutions to commercial and government customers. The company primarily focuses on the aerospace and defense industries, offering services such as aircraft maintenance, repair and overhaul (MRO), parts supply, and logistics. As of Fiscal Year 2023, AAR reported revenues of $1.69 billion, reflecting a year-over-year growth of approximately 13%.

Market Segments

AAR operates through two primary business segments:

• Aviation Services
• Expeditionary Services

As of the latest financial statements, the Aviation Services segment contributed approximately $1.4 billion, while the Expeditionary Services segment accounted for $290 million.

Financial Performance

In the Fiscal Year 2023, AAR Corp. demonstrated robust financial metrics:

Service Offerings

The services provided by AAR include:

• Aircraft MRO
• Parts Supply and Distribution
• Engineering and Technical Services
• Logistic Support Services
• Integrated Supply Chain Solutions

Key Clients

AAR serves a diverse clientele, including:

• Commercial Airlines
• Government Agencies
• Defense Contractors
• Aircraft Manufacturers

Geographic Presence

AAR Corp. operates globally, with significant operations in:

• North America
• Europe
• Asia-Pacific
• Latin America

As of the end of 2023, approximately 60% of revenue was generated from U.S. clients, while the remaining 40% came from international markets.

Recent Developments

Key highlights from the most recent quarter (Q3 FY 2023) include:

Investment and Growth Strategies

AAR Corp. has focused on various strategic initiatives to foster growth:

• Expansion of MRO capabilities
• Leveraging technology for supply chain optimization
• Strategic partnerships with other industry leaders
• Investment in workforce development

Competitive Landscape

AAR faces competition from multiple players within the aerospace and defense industry, including:

• General Dynamics
• Honeywell Aerospace
• Rockwell Collins
• Northrop Grumman

The company aims to maintain its competitive edge through innovation and efficient operational practices.

How AAR Corp. (AIR) Makes Money

Revenue Streams

AAR Corp. derives its revenue from multiple segments, primarily categorized into Airframe Maintenance, Parts Supply, Integrated Solutions, and Technical Services.

Airframe Maintenance

AAR Corp. specializes in airframe maintenance services, providing complete aircraft maintenance, repair, and overhaul (MRO) solutions. The company serves both commercial airlines and government contracts. In FY 2023, the revenue from airframe maintenance reached $178 million.

Parts Supply

The Parts Supply segment focuses on inventory management and distribution of aviation parts. AAR Corp. holds a significant inventory of aviation parts and supplies, generating substantial revenue. For FY 2023, this segment accounted for $610 million in revenue.

Integrated Solutions

AAR's Integrated Solutions division offers a broad range of services that support fleet management, logistics, and supply chain solutions. The revenue for this segment in FY 2023 was approximately $320 million.

Technical Services

This segment involves various technical services, including training, engineering solutions, and consulting for aviation operations. The revenue generated from technical services was around $112 million in FY 2023.

Market Trends and Demand

The global aviation market has shown resilience and growth, particularly in the MRO sector. According to industry reports, the MRO market is projected to grow from $81 billion in 2020 to $100 billion by 2026.

• Increased air travel demand post-COVID-19 pandemic.
• Growing emphasis on fleet modernization and sustainability.
• Rising defense budgets globally driving government contracts.

Financial Performance

For the fiscal year ending May 31, 2023, AAR Corp reported the following financial highlights:

Strategic Partnerships and Collaborations

AAR Corp. has formed strategic alliances with various entities to enhance its service offerings and market reach. These partnerships include

• Collaboration with leading aerospace manufacturers.
• Joint ventures with maintenance service providers.
• Agreements with defense contractors for specialized MRO services.

Investment in Technology

AAR continues to invest in innovative technologies to improve operational efficiency and customer service. The company has allocated about $25 million annually towards research and development.

Future Projections

Industry analysts project AAR Corp. will maintain a growth trajectory, with estimated revenues reaching $1.5 billion by FY 2025, driven by expansion in airframe maintenance and parts supply sectors.

The company also aims to increase its footprint in emerging markets, particularly in Asia-Pacific and Latin America, where aviation growth is anticipated to be robust.