Street Calls of the Week
WOOD DALE, Ill. - AAR CORP. (NYSE:AIR), a $2.9 billion aerospace and defense solutions company whose stock has surged over 33% year-to-date according to InvestingPro data, announced Thursday it has acquired American Distributors Holding Co., LLC (ADI) for $146 million in an all-cash transaction funded through its existing revolving credit facility.
The acquisition expands AAR’s new parts distribution business with additional product lines and OEM relationships. ADI will be integrated into AAR’s Parts Supply segment, strengthening the company’s already robust financial position, which InvestingPro data shows includes a healthy current ratio of 2.91, indicating strong liquidity to meet short-term obligations.
Founded in 1983, ADI distributes components and assemblies to commercial and defense customers across the aerospace and defense industry. The company operates from six locations in the US, UK, and India with approximately 400 employees. For the twelve months ended June 30, 2025, ADI generated $149 million in revenue and $15.2 million in EBITDA.
"AAR Distribution is AAR’s fastest growing activity, averaging more than 20% organic growth in each of the last four years," said John M. Holmes, AAR’s Chairman, President and CEO. This growth trajectory aligns with the company’s overall revenue growth of 17.59% over the last twelve months, as reported by InvestingPro, which offers 8 additional key insights about AAR’s performance in its comprehensive Pro Research Report, available to subscribers. "We expect to leverage AAR’s broad market reach to increase ADI’s market share and expand their product offering."
David Beck, ADI’s Founder and CEO, stated, "Since ADI’s founding, we have focused on providing exceptional service to our vendors and customers, and we will be maintaining this focus with AAR while expanding the reach of our solutions."
The acquisition is expected to broaden AAR’s new parts distribution offerings, particularly in electronics product lines, and add new OEM partnerships while deepening existing relationships. AAR anticipates margin improvement through sales growth, operational efficiency, and business optimization, according to the company’s press release statement.
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries, while ADI serves the aerospace, defense, medical, and industrial sectors by providing electronic components, assemblies, and manufacturing services.
In other recent news, AAR Corporation has reported its first-quarter fiscal 2026 earnings, which significantly surpassed market expectations. The company achieved an adjusted earnings per share (EPS) of $1.08, exceeding the forecasted $1.00. Revenue also outperformed projections, reaching $740 million compared to the expected $691.5 million. Truist Securities responded to these results by raising its price target for AAR Corporation to $90 from $81, while maintaining a Buy rating. Despite the strong earnings and revenue figures, AAR’s free cash flow fell short of analyst estimates. These recent developments highlight the company’s performance and analyst sentiment. Investors may find the earnings and revenue results particularly noteworthy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.