AAR Corp. is strategically positioning itself for enhanced profitability and market valuation. The company has recently divested its landing gear business, a segment that has historically hindered its overall profit margins. This move is expected to pave the way for improved financial performance and operational efficiency.
While the Parts Supply business continues to demonstrate robust growth and contribute positively to margins, the Maintenance, Repair, and Overhaul (MRO) division has encountered challenges. The MRO segment's performance has lagged due to its facilities operating at full capacity, limiting further expansion. To address this, AAR Corp. is actively pursuing capacity expansion through the addition of two new MRO facilities in Miami and Oklahoma. These new sites are projected to increase the company's MRO capacity by 15%, which is critical for future growth and margin improvement. This expansion is anticipated to significantly enhance AAR Corp.'s market position and lead to a more favorable valuation within the aerospace industry.
AAR Corp.'s proactive measures, including the divestiture of underperforming assets and strategic capacity expansion in high-growth areas, underscore a clear vision for sustainable growth and increased shareholder value. This commitment to optimizing its business model ensures the company remains competitive and resilient in the dynamic aerospace market, fostering innovation and delivering superior performance.