AAR, KIRA form JV to train Navy E-6B Mercury pilots

WOOD DALE, Ill. - AAR CORP. (NYSE: AIR), a global aerospace and defense services provider with a market capitalization of $1.72 billion and revenue growth of 21% in the last twelve months, and KIRA Aviation Services have announced the formation of KALS LLC, a joint venture under the Small Business Administration's Mentor-Protégé Program. According to InvestingPro analysis, AAR currently appears undervalued based on its Fair Value estimates. The new entity has been awarded a contract by the U.S. Navy for E-6B Mercury pilot training.

The joint venture will deliver in-flight training and currency for Naval Aviators, supporting the Navy's E-6B Mercury pilot training program. The work will be carried out in Oklahoma City and is expected to continue through March 2027. KALS LLC is set to offer maintenance and supply chain services, addressing the Department of Defense's urgent requirements.

KIRA Aviation Services, a subsidiary of the Tlingit Haida Tribal Business Corporation and a recognized small business, will expand its capabilities through this partnership. AAR will lend its aviation expertise to KIRA, fostering skill development and positioning the smaller firm for further growth.

Lt. General (r) John Cooper, AAR's Senior Vice President of Global Government and Defense, expressed enthusiasm for the joint venture's potential to fulfill a crucial need for the U.S. Navy. Beth Hershner, Vice President of Operations, Information Technology, and Engineering Professional Services at Tlingit Haida Tribal Business Corporation, also highlighted the combined experience of AAR and KIRA in enhancing the Navy's mission readiness.

AAR operates in over 20 countries, providing a range of services through its Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services segments. KIRA Aviation specializes in facility maintenance, logistics, and base operations services for the Department of Defense.

The press release includes forward-looking statements regarding the anticipated activities and benefits of the joint venture. While InvestingPro data suggests net income is expected to grow this year, these statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Discover AAR's complete financial story and growth potential with InvestingPro's detailed Research Report, part of our coverage of over 1,400 US stocks.

This news article is based on a press release statement from AAR CORP.

In other recent news, AAR Corporation reported its fiscal third-quarter 2025 results, highlighting a 20% increase in revenue, though falling short of expectations at $678 million compared to the anticipated $698.97 million. The company achieved an earnings per share (EPS) of $0.99, slightly exceeding the consensus estimate of $0.96. RBC Capital Markets maintained its Outperform rating with a $75 price target, citing strong margin performance as a positive indicator for the next fiscal year. Benchmark analysts also kept a Buy rating with an $83 target, noting that adjusted EBITDA surpassed expectations due to efficiency measures.

Truist Securities adjusted its price target for AAR Corporation to $78 from $81, while maintaining a Buy rating, reflecting confidence in the company's ability to navigate current market challenges. The company announced several strategic deals, including distribution agreements with Chromalloy and Unison, and the selection of its Trax software by Cathay Pacific. AAR Corporation is also anticipating the closure of its $51 million Landing Gear Overhaul business sale in the fourth fiscal quarter of 2025. These developments, alongside robust demand from commercial and government sectors, are expected to influence AAR Corporation's growth trajectory.

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