Business Overview and Strategic Focus

AAR Corp. is a long-established provider of products and services to commercial aviation, government, and defense customers across North America, Europe, Africa, Asia, and other international markets. Founded in 1951 and headquartered in Wood Dale, Illinois, the company has built a diversified operating model designed to support aircraft availability, reliability, and lifecycle management in both civilian and military environments.

Diversified Operating Segments

The company operates through four core segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. These segments allow AAR to participate across the aviation value chain, from supplying and leasing aircraft components to providing complex maintenance, repair, and overhaul services. Its Repair & Engineering operations include airframe inspections, structural repairs, avionics installation, interior and exterior refurbishment, and engine and component servicing, positioning AAR as a critical partner for airlines and fleet operators seeking cost-efficient maintenance solutions.

Technology, Engineering, and Software Capabilities

Beyond physical components and maintenance, AAR has expanded into proprietary engineering and digital solutions. The company designs designated engineering representative repairs and develops aircraft parts tailored to customer needs. Its Trax platform, a cloud-based enterprise resource system, along with paperless mobility applications, enables airlines and operators to automate workflows, manage compliance, and improve operational visibility. These software offerings enhance customer stickiness and support recurring revenue streams.

Logistics, Fleet Management, and Defense Exposure

AAR also plays a significant role in aviation logistics and fleet management, providing supply chain planning, sourcing, information management, and component inventory programs. In defense and humanitarian markets, the company supplies containers and shelters for tactical deployment, including both stationary and vehicle-mounted solutions. This exposure to government and defense spending provides diversification and potential stability during commercial aviation cycles.

Corporate Governance and Risk Profile

From a governance perspective, AAR Corp. holds an ISS Governance QualityScore of 4 as of January 1, 2026, indicating relatively low governance risk compared with peers. Its Audit and Compensation pillar scores are notably strong, while Board and Shareholder Rights scores suggest areas investors may continue to monitor. Overall, the governance profile supports institutional confidence as the company navigates growth opportunities.

Near-Term Outlook and What to Watch

With earnings scheduled for January 7, 2026, investor attention will focus on demand trends in commercial aviation, execution within its Repair & Engineering segment, and continued momentum in software and logistics services. As global air travel normalizes and defense spending remains structurally supported, AAR Corp. is positioned to benefit from long-term aviation activity, while balancing operational complexity across its diversified platform.