Footnotes / references Financials as of May 31, 2023[update]. References:[1]
AAR Corp. is an American provider of aircraft maintenance services to commercial and government customers worldwide. The company is headquartered in Wood Dale, Illinois, a Chicago suburb. The company employs about 6,000 people, operating in about 30 different countries. John Holmes is the current CEO.[2]
The company was founded by Ira Allen Eichner in 1951, to supply radios and other equipment to the commercial aviation industry.[4] I.A. Allen Industrial was incorporated in 1955, renamed Allen Aircraft Radio (AAR) in 1962, and became AAR CORP. in 1970.[4] Also, in 1969, AAR began its aircraft maintenance business in Oklahoma City. In 1965, AAR expanded to Europe and opened a Singapore office in 1982.[5]
AAR organized its Aircraft Turbine Center, Inc. in 1979 after future CEO David P. Storch, Eichner's son-in-law, joined the company.[4]
In 2016, AAR Corp opened its Rockford, Illinois hanger, which AAR Corp is using to guide its current projects in Miami and Oklahoma City to ensure smoother start-ups.[6]
David P. Storch was CEO from 1996 to 2018. In 2018, John M. Holmes became CEO.[7]
In 2017, AAR was chosen as the prime contractor for a 15-year, $909 million landing gear award to provide total supply-chain management to support all U.S. Air Force and contractor requisitions received for all C-130, KC-135 & E-3 landing gear parts.[8]
Landing gear maintenance at Miami airport
In September 2019, the U.S. Naval Air Systems Command awarded AAR a $118M contract for procuring, modifying, and delivering two C-40 aircraft to the U.S. Marine Corps.[9]
During the Trump administration, AAR quadrupled its lobbying expenditures.[10] The company spent large sums at Trump-owned properties with the intent to get Trump to view the company more favorably.[10] From the time Trump took office until October 2020, AAR obtained 10 new federal contracts worth a total of $1.35 billion.[10]
AAR CORP trainees at the Miami airport
In April 2021, AAR signed a multi-year agreement with United Airlines to provide heavy maintenance services in Rockford, Illinois. AAR plans to add up to 250 more aviation maintenance technician (AMT) jobs at the facility to meet increased demand from United.[11]
AAR announced its plans to buy Triumph's (TGI) Product Support Group for $725 million in an all-cash deal on December 21, 2023. The deal closed March 1, 2024, and included five facilities, four in the U.S. and one in Thailand.[12]
On March 27, 2024, AAR began construction on a new 114,000 sq. ft. maintenance, repair, and overhaul (MRO) facility at Miami International Airport (MIA), expanding its airframe MRO capacity by 33%. The facility is set to open in October 2025 and is expected to create over 200 jobs in Miami.[13]
In September 2024, AAR reported a 20% increase in fiscal Q1 sales. AAR's largest non-government customers in 2024 are North American airlines, with United Airlines, Delta Air Lines, Air Canada, and Southwest Airlines collectively making up 71% of the company's consolidated revenue in the first quarter.[16]
After completing a pilot program with United Airlines, AAR announced in October 2024 that it is digitizing maintenance, repair, and overhaul (MRO) operations across its facilities, with the initiative intended to improve efficiency.[17]
In December 2024, Global aerospace company AAR Corp agreed to resolve U.S. charges in connection with schemes to bribe Nepalese and South African officials. AAR agreed to pay more than $55 million to resolve investigations done by the Justice Department and SEC.[18]
Financial trends
Annual financial highlights (U.S. Dollars in millions except per share data):
For the year ending May 31
2023
2022
2021
2020
2019
2018
2017
2016
Operating performance
Net sales
1,990.5
1,820.0
1,652.3
2,072.0
2,057.8
1,748.3
1,590.8
1,525.4
Operating income
133.9
106.9
85.2
41.3
98.3
86.0
82.3
75.5
Diluted earnings per share from continuing operations
