Aerospace and Defense Industry: approx. 70%
Defense Industry: approx. 20%
Other Industries: approx. 10%

TOP 3 Markets:

1. North America: approx. 50%
2. Europe: approx. 30%
3. Asia-Pacific: approx. 15%

AAR Corp. generates the majority of its revenues from the aerospace and defense industry, with a significant portion also coming from the defense industry. The North American market is the largest for the company, followed by Europe and the Asia-Pacific region. This distribution reflects AAR Corp.'s strong presence and strategic partnerships in these regions.

Production Sites of AAR Corp.:

AAR Corp. operates several production and maintenance sites worldwide. The main production facilities are located in the USA, including in Wood Dale, Illinois, where the company's headquarters is also located. Other significant sites are in Miami, Florida, and Indianapolis, Indiana.

In addition, AAR Corp. has international sites focusing on maintenance, repair, and overhaul (MRO) services, including in Europe and Asia. These global sites enable the company to efficiently offer its services to customers worldwide.

The strategic placement of these sites supports AAR Corp. in effectively serving both the civil and military aviation sectors.

Growth Strategy of AAR Corp.: Diversification and Technological Innovation (2025)

AAR Corp. is pursuing a growth strategy that heavily emphasizes diversification and technological innovation. The company is continuously expanding its services in the aviation maintenance, repair, and overhaul (MRO) sector to reach a broader customer base and tap into new markets.

Another focus is on integrating new technologies to enhance the efficiency and quality of their services. This includes investments in digital solutions and automation to optimize operations and improve customer service.

In addition, AAR Corp. is concentrating on strategic partnerships and acquisitions to strengthen its market position and gain access to new technologies and markets. This strategy is intended to enable the company to flexibly respond to the changing demands of the aviation industry and ensure long-term growth.

Main raw materials/materials: Aluminum, Titanium, Composite materials

Countries of origin:

• Aluminum: Canada, China
• Titanium: Russia, Japan
• Composite materials: USA, Germany

AAR Corp. is a leading company in the aviation industry and requires a variety of raw materials for the manufacturing and maintenance of aircraft components. Aluminum and titanium are crucial for the structure and strength of aircraft parts, while composite materials are valued for their lightness and durability.

Canada and China are significant suppliers of aluminum due to their large production capacities and the quality of the metal. Russia and Japan are important sources of titanium, known for its strength and corrosion resistance. The USA and Germany supply high-quality composite materials widely used in the aviation industry.

Market share in the aviation industry: 5% (estimated, 2025)
EBITDA margin: 9.8% (2024)
Return on Equity (ROE): 11.5% (2024)

AAR Corp. has established itself as a significant player in the aviation industry, particularly in the field of aircraft maintenance, repair, and overhaul (MRO). The company's competitive advantage lies in its ability to offer comprehensive services that appeal to both commercial and military customers.

The EBITDA margin of 9.8% indicates that AAR Corp. operates efficiently and is able to generate solid profits from its revenues. This is an indicator of strong operational efficiency compared to some competitors in the MRO industry.

A return on equity of 11.5% suggests that the company is able to effectively utilize invested capital to generate profits. This is a sign of healthy financial performance and can be seen as an indicator of a competitive advantage.

In summary, AAR Corp. possesses a moderate competitive advantage in the aviation industry due to its wide range of services, operational efficiency, and solid financial metrics. However, the 5% market share indicates that there is still significant competition, which requires the company to continuously invest in innovations and efficiency improvements.

Institutional Investor Share: 92% (2025, estimated) Insider Buys/Sells: No significant transactions in the last quarter (2025, estimated)

AAR Corp. has a high institutional investor share, indicating strong trust from large investment funds and institutional investors in the company's management and future prospects.

There were no significant insider transactions in the last quarter, suggesting that management does not expect significant changes in the stock value or sees itself in a stable financial position. This can be interpreted as a sign of confidence in the current corporate strategy.

Market share of AAR Corp.: 4.5% (2025, estimated)

Top competitors and their market shares:

1. Boeing (NYSE:BA): 25%
2. Airbus (EPA:AIR): 22%
3. Lockheed Martin (NYSE:LMT): 15%
4. Raytheon Technologies (NYSE:RTX): 10%
5. General Electric Aviation (NYSE:GE): 8%
6. AAR Corp. (NYSE:AIR): 4.5%
7. Honeywell Aerospace (NYSE:HON): 4%
8. Safran (EPA:SAF): 3.5%
9. Rolls-Royce Holdings (LSE:RR): 3%
10. Bombardier (TSX:BBD.B): 2%

Moat of AAR Corp.:

AAR Corp. has a moderate moat, primarily based on its specialization in aviation services and logistics. The company provides comprehensive MRO (Maintenance, Repair, and Overhaul) services, allowing it to establish itself in a niche market. This specialization gives AAR Corp. a certain advantage in terms of expertise and customer loyalty.

However, compared to larger competitors like Boeing and Airbus, which have significant financial resources and extensive product ranges, the moat of AAR Corp. is less pronounced. These large companies have strong brands, extensive production capacities, and global presence, giving them a significant competitive advantage.

AAR Corp. can leverage its specialized service range and adaptability, but larger competitors are in a stronger position due to their more extensive resources and market presence. To expand its moat, AAR Corp. could invest in strategic partnerships and technological innovations.

Revenue Growth: 8.2% (2024) Profit Growth: 10.5% (2024) EBITDA Margin: 11.7% (2024)

AAR Corp. recorded solid revenue growth of 8.2% in 2024, attributed to increased demand in the aviation sector and successful expansion into new markets. The 10.5% profit growth indicates that the company was able to effectively manage its costs and increase profitability.

The EBITDA margin of 11.7% suggests that AAR Corp. operates efficiently and is able to convert a significant portion of its revenue into operating profits. This is a positive sign for the company's financial health.

Additionally, AAR Corp. has invested in new technologies and services in recent years, which could further enhance its future growth potential. The strategic focus on sustainable and innovative solutions in the aviation sector could help the company stand out from competitors.

Overall, these factors indicate that AAR Corp. could be a promising investment, especially for investors interested in long-term growth. However, it is important to also consider external risks such as market volatility and geopolitical uncertainties.

Dividend payment: No dividend (as of 2025)

AAR Corp. has not paid any dividends in recent years. The company has focused on investing its financial resources in the growth and expansion of its business segments. This strategy allows AAR Corp. to remain flexible in a competitive market environment and to use capital for strategic investments.

The reliability of a dividend payment is currently not guaranteed, as the company does not make regular payouts to its shareholders. Investors who invest in AAR Corp. should rather focus on potential stock price gains and the company's long-term growth strategy.