AAR Corp.: Leveraging Aftermarket Growth And Capacity Expansion

Summary

• AAR Corp. reported robust year-over-year sales growth of 20.4% in 1Q25, driven by increased demand and volume in the commercial aerospace sector, particularly within its parts supply segment.
• The company is well-positioned to benefit from the recovery in air traffic and aging fleets, which are driving the demand for aftermarket services.
• MRO demand is expected to exceed supply by the end of the decade, providing strong growth potential for the company.
• AIR’s hangars are near full capacity, and the company is expanding them to meet growing demand, positioning itself to capture future growth in the aerospace aftermarket.