AAR wins $85 million contract from Defense Logistics Agency

WOOD DALE, Ill. - AAR CORP. (NYSE:AIR), with a market capitalization of $2.7 billion and impressive year-to-date returns of 23.5%, has secured a new contract to provide mobility solutions to the Defense Logistics Agency Troop Support, according to a press release statement issued Thursday.

The indefinite-delivery/indefinite-quantity contract includes a one-year base period with four one-year option periods and carries a total potential value of up to $85 million. Under the firm-fixed contract, the government can order specialized shipping and storage containers, shelters, and accessories. According to InvestingPro data, AAR’s strong financial position, with liquid assets exceeding short-term obligations, positions it well to execute this contract.

AAR manufactures lightweight solutions designed to enhance the movement of personnel and equipment for operational requirements. The company’s mobility products serve the U.S. Army, Navy, Air Force, Marine Corps, and other federal civilian agencies.

"AAR has provided mobility solutions to the U.S. government for more than 30 years and is grateful for their continued confidence and support," said Mike Ritter, AAR’s Vice President and General Manager of Mobility Systems.

The Chicago-area headquartered company operates in over 20 countries, supporting commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.

AAR has been supplying mobility solutions to the U.S. government for over three decades, focusing on products that address logistical challenges for military operations.

In other recent news, AAR Corp reported a strong finish to its fiscal year 2025, surpassing both earnings and revenue expectations in the fourth quarter. The company delivered an earnings per share of $1.16, exceeding the forecast of $1.00 by 16%, while revenue reached $755 million, beating projections by 8.67%. In a strategic move to expand its software offerings, AAR Corp acquired Aerostrat, a long-range maintenance planning software company, for $15 million, with potential contingent consideration of up to $5 million. This acquisition enhances the capabilities of AAR’s Trax subsidiary, which provides enterprise resource planning systems for the aviation industry.

Additionally, AAR Corp has priced a $150 million add-on offering of 6.750% senior notes due 2029. These additional notes are issued under an existing indenture through which the company previously issued $550 million of notes with the same terms. This financial maneuver aims to bolster the company’s capital structure as it continues to expand its operations. These developments reflect AAR Corp’s ongoing efforts to strengthen its market position and financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.