AAR Corp Files 2024 Annual Report

TL;DR

AAR Corp's 2024 10-K is in. Check financials for aircraft parts giant.

AI Summary

AAR Corp filed its 10-K for the fiscal year ending May 31, 2024, reporting on its operations in the aircraft and parts industry. The company, formerly known as Allen Aircraft Radio Inc., is incorporated in Delaware and headquartered in Wood Dale, Illinois. Key financial details and operational segments are outlined within the extensive filing.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of AAR Corp's financial health, strategic direction, and risks for the fiscal year 2024.

Risk Assessment

Risk Level: medium — 10-K filings are standard for public companies, but the complexity and industry-specific details can present risks.

Key Numbers

• $1.00 — Par Value of Common Stock (Details on the company's common stock structure.)
• 7,500,000 — Shares Authorized (Indicates the total number of shares the company is authorized to issue.)
• 16,300,000 — Shares Outstanding (Represents the number of shares currently held by investors.)

Key Players & Entities

• AAR CORP (company) — Filer
• Allen Aircraft Radio Inc. (company) — Former Company Name
• Wood Dale, IL (location) — Headquarters
• 0531 (date) — Fiscal Year End
• 20240531 (date) — Report Period End Date

FAQ

Key Financial Figures

• $1.00 — nge on Which Registered Common Stock, $1.00 par value AIR New York Stock Exchan
• $328.4 m — olidated sales in fiscal 2024 increased $328.4 million, or 16.5%, over the prior year pr
• $309.1 m — sales to commercial customers increased $309.1 million, or 23.3%, over the prior year pr
• $19.3 m — sales to government customers increased $19.3 million, or 2.9%, primarily due to higher
• $725.0 million — oduct Support") for a purchase price of $725.0 million subject to customary post-closing adjus
• $681.0 million — epartments of the U.S. government) were $681.0 million (29.4% of consolidated sales), $661.7 m
• $661.7 million — million (29.4% of consolidated sales), $661.7 million (33.2% of consolidated sales), and $736
• $736.2 million — lion (33.2% of consolidated sales), and $736.2 million (40.5% of consolidated sales) in fiscal
• $576.1 million — . government and their contractors were $576.1 million (24.8% of consolidated sales), $577.0 m
• $577.0 million — million (24.8% of consolidated sales), $577.0 million (29.0% of consolidated sales), and $620
• $620.0 million — lion (29.0% of consolidated sales), and $620.0 million (34.1% of consolidated sales) in fiscal

Filing Documents

• air-20240531x10k.htm (10-K) — 3191KB
• air-20240531xex10d9.htm (EX-10.9) — 7KB
• air-20240531xex10d11.htm (EX-10.11) — 16KB
• air-20240531xex10d34.htm (EX-10.34) — 28KB
• air-20240531xex19d1.htm (EX-19.1) — 74KB
• air-20240531xex21d1.htm (EX-21.1) — 86KB
• air-20240531xex23d1.htm (EX-23.1) — 5KB
• air-20240531xex31d1.htm (EX-31.1) — 13KB
• air-20240531xex31d2.htm (EX-31.2) — 13KB
• air-20240531xex32d1.htm (EX-32.1) — 5KB
• air-20240531xex32d2.htm (EX-32.2) — 5KB
• air-20240531xex97d1.htm (EX-97.1) — 36KB
• air-20240531x10k002.jpg (GRAPHIC) — 44KB
• air-20240531xex23d1001.jpg (GRAPHIC) — 3KB
• 0001104659-24-080890.txt ( ) — 15716KB
• air-20240531.xsd (EX-101.SCH) — 83KB
• air-20240531_cal.xml (EX-101.CAL) — 94KB
• air-20240531_def.xml (EX-101.DEF) — 462KB
• air-20240531_lab.xml (EX-101.LAB) — 886KB
• air-20240531_pre.xml (EX-101.PRE) — 669KB
• air-20240531x10k_htm.xml (XML) — 3286KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 25 Item 1C. Cybersecurity 25 Item 2.

Properties

Properties 26 Item 3.

Legal Proceedings

Legal Proceedings 26 Item 4. Mine Safety Disclosures 27 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 Item 6. (Reserved) 28 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 40 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 41 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 85 Item 9A.

Controls and Procedures

Controls and Procedures 85 Item 9B. Other Information 88 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 88 PART III Item 10. Directors, Executive Officers and Corporate Governance 88 Item 11.

Executive Compensation

Executive Compensation 88 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 88 Item 13. Certain Relationships and Related Transactions, and Director Independence 89 Item 14. Principal Accountant Fees and Services 89 PART IV Item 15. Exhibits and Financial Statement Schedules 89 EXHIBIT INDEX Item 16. Form 10-K Summary 94

SIGNATURES

SIGNATURES 1 Table of Contents PART I

BUSINESS

ITEM 1. BUSINESS General AAR CORP. and its subsidiaries are referred to herein collectively as "AAR," "Company," "we," "us," and "our" unless the context indicates otherwise. AAR was incorporated in 1955 and we are a leading independent provider of solutions to the global aviation aftermarket. We offer a broad line of products and services to commercial and government aerospace customers. We operate globally in over 20 countries through four business segments: Parts Supply, Repair & Engineering, Integrated Solutions and Expeditionary Services. In fiscal 2024, we established new partnerships, expanded our service offerings, and drove greater differentiation in our business including pursuing multiple growth prongs. Throughout the year, the industry saw an increase in the utilization of existing aircraft, which drove greater demand for aircraft maintenance with maintenance, repair and overhaul ("MRO") spend reaching record levels, and engine reliability issues prompted greater adoption of used serviceable material ("USM"). Our services, capabilities, and partnerships were well matched to the landscape of the industry, which enabled us to reach higher sales than ever before. Consolidated sales in fiscal 2024 increased $328.4 million, or 16.5%, over the prior year primarily due to an increase in sales to commercial customers. Consolidated sales to commercial customers increased $309.1 million, or 23.3%, over the prior year primarily due to strong demand and volume growth in our Parts Supply segment across both new parts distribution and USM. Our consolidated sales to government customers increased $19.3 million, or 2.9%, primarily due to higher activity on the INL/A WASS contract with the U.S. Department of State ("DoS") included in our Integrated Solutions segment. Our growth strategy has long included both inorganic and organic growth. Building on our long-term relationships with valued customers as well as strong local partnerships, we recently broke ground on

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View this 10-K filing on SEC EDGAR