AAR Corp (NYSE: AIR) announced that Thai Airways has selected the company’s Trax eMRO platform and Aerostrat maintenance‑planning software to modernize its global fleet’s maintenance, repair and overhaul operations. The deal will deploy Trax’s enterprise resource planning system, eMobility applications, and cloud hosting, along with Aerostrat’s Aerros planning tool, across Thai Airways’ entire aircraft fleet.
The contract is a significant win for AAR’s digital services business, adding a high‑margin, recurring revenue stream that supports the company’s margin‑expansion strategy. By integrating Trax and Aerostrat, Thai Airways will gain real‑time data access, streamlined workflows and advanced planning capabilities, which are expected to improve turnaround times and reduce operating costs. The deal also signals strong market confidence in AAR’s digital solutions and positions the company to capture additional MRO software contracts in the Asia‑Pacific region.
AAR’s Q4 2025 earnings, released earlier this year, underscored the company’s robust financial health. The company reported an adjusted diluted EPS of $1.16, beating analyst expectations of $1.00 by 16% and a revenue of $755 million, surpassing the consensus estimate of $694.8 million by 8.7%. The earnings beat was driven by strong demand in the Parts Supply segment, which grew 15% YoY, and by the successful integration of the Product Support acquisition, which added new revenue streams and improved operating leverage. Adjusted EBITDA margin expanded to 12.4% from 11.6% in the prior year quarter, reflecting pricing power and cost discipline across the business.
John M. Holmes, AAR’s Chairman, President and CEO, said the company’s “record sales and profitability” in FY2025 demonstrate the effectiveness of its strategy to grow high‑margin digital services. Andrew Schmidt, SVP of AAR Digital Services and President of Trax, highlighted the partnership’s potential to “increase Thai Airways’ productivity and reduce operational costs.” Thai Airways’ Chief of Technical, Cherdphan Chotikhun, noted that the collaboration will “enable the airline to establish a state‑of‑the‑art MRO operation that meets global standards.”
The contract strengthens AAR’s competitive moat in the aviation services industry and provides a platform for future growth in the digital MRO market. With the Thai Airways deal, AAR is better positioned to capture additional contracts in the region, while its strong Q4 2025 performance signals continued momentum in its core segments. The company’s guidance for FY2026 remains positive, reflecting confidence in sustained demand for its parts distribution and digital solutions.
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