AAR Corp, an aviation services provider, has recently announced a new multi-year agreement with Ontic, an aerospace Original Equipment Manufacturer (OEM). This agreement will grant AAR distribution rights to supply a strategic selection of military products to the U.S. government.
Currently, AAR provides military distribution support to Ontic’s Cheltenham facility in the U.K. and commercial distribution support to Ontic’s Creedmoor facility in North Carolina. With this new agreement, AAR will expand its relationship with Ontic to include the Chatsworth facility.
Ross Wuestenfeld, Vice President of AAR’s Distribution – Defense, expressed enthusiasm about the expansion of their Ontic relationship. He stated that AAR is eager to bolster their strategic military portfolio and sees this agreement as a significant step in that direction.
Ontic specializes in providing complex engineered parts and repair services for aircraft in the defense and commercial market. By partnering with Ontic, AAR will have access to a wide range of high-quality military products, allowing them to better serve the U.S. government’s needs.
This news comes on the heels of AAR’s Q2 FY24 sales report, which showed a 16% year-over-year increase to $545.4 million. While the sales figure fell slightly short of the estimated $557.2 million, AAR’s adjusted earnings per share (EPS) of 81 cents exceeded the estimated 80 cents.
Following the announcement, AAR Corp’s stock price experienced a slight increase of 0.51% and was trading at $62.48 at the time of reporting.
This partnership between AAR and Ontic highlights the continued growth and importance of the aerospace industry, particularly in the defense sector. As the U.S. government continues to invest in military products and services, companies like AAR are well-positioned to capitalize on these opportunities.
In conclusion, AAR Corp’s new multi-year agreement with Ontic is a significant development for the aviation services provider. By expanding their distribution rights, AAR will be able to supply a strategic selection of military products to the U.S. government, further strengthening their position in the defense sector. With the aerospace industry showing signs of growth, this partnership is expected to benefit both companies and contribute to the overall expansion of the industry.
