Core Points - AAR CORP.'s subsidiary Airinmar has signed a multi-year support services extension with Cebu Pacific, focusing on component repair cycle management and aircraft warranty management solutions [1][2] - The agreement continues the full suite of support services that Airinmar has provided to Cebu Pacific since 2022, aimed at maximizing warranty recovery and reducing maintenance costs [2][3] - Cebu Pacific has expanded its fleet to 100 aircraft with over 100 additional aircraft on order, highlighting the importance of Airinmar's services in managing maintenance expenditures effectively [4] Company Overview - Airinmar has over 40 years of experience supporting airlines, MROs, OEMs, and military programs through tailored component repair and warranty management services, which enhance operational efficiencies and reduce repair costs [5] - AAR CORP. operates globally in the aerospace and defense aftermarket solutions sector, with a presence in over 20 countries and four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services [6] - Cebu Pacific, a low-cost carrier established in 1996, has flown over 250 million passengers and operates one of the youngest fleets globally, with a network covering 37 domestic and 26 international destinations [7]

For more information about this event or to schedule a meeting with AAR's senior management, please contact AAR's Investor Relations at [email protected].  About AARAAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. Additional information can be found ...

WOOD DALE, Ill. , Sept. 8, 2025 /PRNewswire/ -- AAR CORP. ...

Core Viewpoint - Kahn Swick & Foti, LLC is investigating the proposed sale of Air Lease Corporation to a consortium including Sumitomo Corporation, SMBC Aviation Capital, Apollo, and Brookfield, focusing on whether the offered price of $65.00 per share adequately reflects the company's value [1]. Group 1 - The proposed transaction involves Air Lease Corporation shareholders receiving $65.00 in cash for each share they own [1]. - Kahn Swick & Foti, LLC aims to assess the adequacy of the sale price and the process leading to this valuation [1][2]. - The investigation is prompted by concerns that the transaction may undervalue Air Lease Corporation [1].

Group 1: AAR Corporation Developments - AAR Corporation's Mobility Systems unit secured a contract from the Defense Logistics Agency Troop Support with a potential value of up to $85 million, covering shipping and storage containers, shelters, and related accessories for U.S. military operations [1][10] - AAR specializes in lightweight, durable, and deployable logistics solutions, aligning with military modernization goals, and has over 30 years of experience supporting the U.S. Department of Defense [3] Group 2: Market Growth Prospects - The global Military and Defense Ground Support Equipment (GSE) market is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2023 to 2032, driven by modernization efforts and the integration of new technologies [2] - AAR is positioned to benefit from rising demand in the ground support equipment market due to its expertise and product offerings [3] Group 3: Other Defense Companies - BAE Systems announced a partnership to compete for the U.K.'s Land Mobility Program, focusing on modernizing military ground mobility solutions [5] - AeroVironment's subsidiary won a contract to provide uncrewed ground vehicles to the German Armed Forces, indicating a strong demand for advanced support equipment [7] - Teledyne Technologies' unit secured contracts worth up to $47 million to support ground robots for the U.S. Army, reinforcing its role in unmanned ground support systems [9]

Core Insights - AAR CORP. has been awarded a contract valued at up to $85 million to provide mobility solutions to the Defense Logistics Agency Troop Support, which includes a one-year base period and four one-year option periods [2][4]. Company Overview - AAR CORP. is a leading provider of aviation services to commercial and government operators, MROs, and OEMs, with operations in over 20 countries [5]. - The company has been supplying mobility solutions to the U.S. government for over 30 years, demonstrating a strong track record in quality and customer service [4][5]. Product Offering - The contract allows the government to order a comprehensive suite of specialized shipping and storage containers, shelters, and accessories, aimed at addressing logistical challenges faced by military operators [2][3]. - AAR's mobility solutions are designed to be versatile and lightweight, enhancing the ability to move personnel and equipment effectively [3][4]. Customer Base - AAR's customers include major branches of the U.S. military, such as the Army, Navy, Air Force, and Marine Corps, as well as other federal civilian agencies [3].

Core Insights - AAR CORP. has signed a multi-year defense distribution agreement with AmSafe Bridport, becoming the exclusive distributor for KC-46 and C-40 platforms in the global defense and military aftermarket [1][2][3] Company Overview - AAR CORP. is a leading provider of aviation services, operating in over 20 countries and supporting both commercial and government customers through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services [4] - AmSafe Bridport specializes in aerospace and defense safety restraint products, offering engineered textile solutions with over 40 years of experience [5] Agreement Details - The agreement allows AAR to distribute AmSafe Bridport products to the U.S. Defense Logistics Agency, U.S. Armed Services, and foreign militaries, including Japan [2][3] - This partnership enhances AAR's defense distribution portfolio by including cargo handling products and improves customer service through better coordination on government contracts [2][3]

Financial Data and Key Metrics Changes - The company reported earnings before taxation of $89 million and a net profit after tax of $126 million, despite facing significant operational constraints [9][22] - The estimated gross impact of engine availability issues for the financial year was between $280 million and $320 million, with compensation received from engine manufacturers amounting to $129 million [22][24] - Revenue and other income decreased due to a 4% reduction in network capacity compared to the prior year [24] Business Line Data and Key Metrics Changes - The transformation program delivered approximately $100 million in incremental EBITDA benefits, with a shift towards stronger performance in ancillary revenue [5][16] - The loyalty program, AirPoint, surpassed 5 million members, indicating strong customer engagement [10] Market Data and Key Metrics Changes - Domestic demand remains soft, particularly in Wellington, with government travel down 10% and corporate travel down 5% [11][60] - International demand, particularly on the Tasman route, remains strong, with plans to launch new routes and increase capacity [12][61] - Outbound demand to North America has held steady, supported by a strong U.S. dollar, while Asia has seen a slight decline due to reduced operations in Korea [13][65] Company Strategy and Development Direction - The company is focused on improving operational resilience and digital infrastructure while managing the impact of engine availability issues [5][14] - Future capacity growth is expected to be low single digits in FY 2026, with a more significant increase anticipated in FY 2027 and FY 2028 as engine constraints ease [6][40] - The company aims to leverage digital systems and AI to improve cost efficiencies and maintain stable fixed costs as the network grows [28][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by engine availability issues, which have persisted longer than expected, impacting operational capacity and financial performance [36][39] - The outlook for FY 2026 remains constrained, with expectations of non-fuel cost inflation of 3% to 5% due to increased charges across the aviation ecosystem [52] Other Important Information - The company declared a final dividend of $1.25 per share, totaling approximately $40 million, and has initiated a share buyback program [34][33] - The company is preparing for increased capital expenditures over the next two years, with a total forecast of approximately $3.7 billion through to 2030 [32][33] Q&A Session Summary Question: Clarification on FY 2026 non-fuel operating cost inflation - Management confirmed that the transformation benefits for FY 2026 are expected to offset non-fuel cost inflation pressures [55][56] Question: Insights on domestic and international demand - Management provided details on soft domestic demand, particularly in Wellington, while noting positive trends in international markets, especially from Australia [59][61] Question: Guidance on compensation and liquidity - Management indicated that the first half guidance assumes a reduction in compensation from engine manufacturers and noted the current strong liquidity position [83][84]

Financial Data and Key Metrics Changes - The company reported earnings before taxation of $89 million and a net profit after tax of $126 million, despite facing significant operational constraints [8][20] - The financial results were significantly impacted by ongoing engine availability issues, with an estimated gross impact of $280 million to $320 million for the year [21][22] - Compensation received from engine manufacturers amounted to $129 million, with $107 million related to the 2025 financial period, recovering about one-third of the financial impact [21][22] Business Line Data and Key Metrics Changes - The transformation program delivered approximately $100 million in incremental EBITDA benefits, with a shift in focus towards ancillary revenue and premium cabin demand [5][16] - The company operated 4% less capacity than the prior year, affecting both top-line revenue and productivity [6][22] - The loyalty program, AirPoint, surpassed 5 million members, indicating strong customer engagement [11] Market Data and Key Metrics Changes - Domestic demand remains soft, particularly in Wellington, with government travel down 10% and corporate travel down 5% [11][58] - International demand, particularly on the Tasman route, remains strong, with plans to add capacity to existing routes [12][60] - Outbound demand to North America has held steady, supported by a strong U.S. dollar, although a shorter booking curve has been noted [13][61] Company Strategy and Development Direction - The company is focused on improving customer experience, strengthening digital infrastructure, and enhancing operational resilience [5][14] - Future capacity growth is expected to be low single digits in FY 2026, with a more significant increase anticipated in FY 2027 and FY 2028 as engine constraints ease [6][40] - The company aims to leverage digital systems and AI to improve cost efficiencies and maintain stable fixed costs as the network grows [27][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by engine availability issues, which have proven to be more persistent than expected [35][39] - The outlook for FY 2026 remains constrained, with expectations of non-fuel cost inflation of 3% to 5% due to increased aviation sector levies and charges [51][52] - Management expressed confidence in recovery as engine challenges and economic conditions improve, with a focus on maintaining customer satisfaction and operational performance [52][90] Other Important Information - The company declared a final dividend of $1.25 per share, totaling approximately $40 million for the year [34] - The company has a robust capital management framework in place, with liquidity exceeding target ranges [33] Q&A Session Summary Question: Clarification on FY 2026 non-fuel operating cost inflation - Management confirmed that the transformation benefits for FY 2026 are expected to offset non-fuel cost inflation pressures [54][56] Question: Insights on domestic and international demand - Management noted that while Wellington remains challenging, other regions like Christchurch and Queenstown are performing better, and international demand, particularly from Australia, is strong [57][60] Question: Guidance on compensation and liquidity - Management indicated that the first half guidance assumes a reduction in compensation from engine manufacturers and noted that liquidity remains strong [80][82]

Financial Performance - Air New Zealand's operating revenue reached $6.8 billion, consistent with the previous year[35] - Earnings before taxation (EBT) decreased by 15% to $189 million[35] - Net profit after taxation (NPAT) declined by 14% to $126 million[35] - The company declared full year unimputed ordinary dividends of 2.5 cents per share[35] Operational Challenges and Mitigation - Aircraft availability challenges resulted in an estimated $165 million adverse impact on 2025 earnings, partially offset by $129 million in compensation[11,37] - Transformation initiatives delivered approximately $100 million in EBITDA benefits in 2025[23] - The airline is actively managing aircraft availability due to global engine maintenance delays, with up to 11 aircraft grounded out of a 60 jet fleet in 2025[27] Capacity and Demand - Available Seat Kilometers (ASKs) decreased by 4%[11] - Passenger numbers decreased by 3% to 16 million[11] - Loyalty members increased by 9% to over 5 million[12] Future Outlook - The airline anticipates a 2% to 4% increase in group capacity in 2026, equating to approximately 90% of pre-Covid capacity[77] - Fuel costs for 2026 are estimated at approximately $1.5 billion, assuming a jet fuel price of US$85 per barrel, with approximately 70% of volumes hedged[79,105] - Continued price increases in landing charges, aviation security, and air navigation for 2026 are expected to result in approximately $85 million (13%) incremental cost[79]