AAR Corp. and ASL Aviation Expand Partnership with Multi-Year Contract Extension
December 29, 2023
☀️Trending News
AAR ($NYSE:AIR) Corp. (AIR) is a leading provider of aviation services to commercial, government, and defense customers around the world. Recently, AAR and ASL Aviation have announced an expansion of their partnership with a multi-year contract extension. ASL Aviation is a global provider of airline, cargo, and aviation services. This contract extension with AAR will further strengthen their relationship and solidify their position as leaders in the industry. ASL will also benefit by gaining access to AAR’s extensive network of international suppliers and customers.
Additionally, ASL plans to use the extended agreement to enhance its existing aircraft components business with new offerings. This contract extension will allow both companies to build on their successful existing relationship and broaden their partnership. This move will benefit both companies as well as the aviation industry as a whole.
Market Price
This news caused AAR CORP stock to open at $64.0 and close at $63.1, down by 1.1% from its prior closing price of 63.8. The two companies have enjoyed a successful relationship for many years, and the extension of their partnership further cements their commitment to each other. The extended contract not only ensures the current success of both companies but also provides a platform to pursue new opportunities. Their joint venture is now well positioned to capitalize on the growing aviation industry and grow their respective businesses. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aar Corp. More…
| Total Revenues | Net Income | Net Margin |
| 2.17k | 67.4 | 3.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aar Corp. More…
| Operations | Investing | Financing |
| 61.3 | -140 | 103 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aar Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.97k | 810.1 | 32.55 |
Key Ratios Snapshot
Some of the financial key ratios for Aar Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.9% | 98.9% | 4.8% |
| FCF Margin | ROE | ROA |
| 1.3% | 5.8% | 3.3% |
Analysis
As GoodWhale, we have analyzed the financials of AAR CORP and can confidently report that the company has a high health score of 8/10 when considering its cashflows and debt. This score indicates that AAR CORP is capable to pay off debt and fund future operations. We classify AAR CORP as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given its position, AAR CORP may be of particular interests to investors who prioritize asset strength, medium growth, and low dividend yield. Its weak profitability should be taken into consideration before investing, as it could indicate a decreased ability to generate profits from operations in the future. More…
Peers
The aerospace industry is highly competitive, with companies vying for contracts from airlines and governments around the world. Its competitors include Sichuan Haite High-tech Co Ltd, Destini Bhd, Embraer SA, and other large aerospace firms. AAR Corp has a strong track record of delivering quality products and services, and is well-positioned to continue its success in the years to come.
– Sichuan Haite High-tech Co Ltd ($SZSE:002023)
Sichuan Haite High-tech Co Ltd is a Chinese company that manufactures and sells a variety of products, including semiconductors, integrated circuits, and other electronic components. The company has a market cap of 6.96B as of 2022 and a Return on Equity of 0.16%.
– Destini Bhd ($KLSE:7212)
Destini Bhd is a Malaysian company that provides engineering solutions. The company has a market capitalization of 133.08 million as of 2022 and a return on equity of 1.97%. Destini Bhd’s main business activities include providing engineering solutions for the aerospace, oil and gas, and defense industries. The company also has a joint venture with Airbus Group to provide engineering solutions for the A320neo aircraft.
– Embraer SA ($NYSE:ERJ)
Embraer SA is a Brazilian aerospace conglomerate that manufactures aircraft and provides aviation services. The company has a market cap of 1.93B as of 2022 and a return on equity of 4.38%. Embraer is the world’s third-largest producer of commercial jets, and its products are used by airlines around the globe. The company has a strong presence in the regional jet market, and its products are known for their fuel efficiency and reliability. Embraer has a long history of innovation, and its products are some of the most advanced in the aviation industry. The company is a major player in the global aerospace market, and its products are used by many of the world’s leading airlines.
Summary
AAR Corp. (AIR) recently announced a multi-year contract extension and expansion with ASL Aviation. This contract is a great sign for investors since it shows that AAR Corp. is continuing its successful business relationship with ASL Aviation. The details of the deal were not released, but the company is expected to benefit from this agreement in the coming years.
AAR Corp. has a long-term track record of profitability and a strong balance sheet, making it an attractive investment for long-term investors. Investors should be encouraged by this news and consider adding AAR Corp. to their portfolio.
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