AAR Bundle
Who Owns AAR Corp.?
Understanding AAR Corp.'s ownership is key for stakeholders. A recent $51 million divestiture of its Landing Gear Overhaul business in April 2025 highlights the company's evolving asset management.
Founded in 1955, AAR Corp. has grown into a global aviation aftermarket leader. Its fiscal year 2025 saw consolidated sales of $2.8 billion, a 20% increase.
AAR Corp.'s ownership is primarily held by institutional investors, reflecting its status as a publicly traded entity. This structure influences its strategic decisions and operational focus, as seen in its AAR PESTEL Analysis.
Who Founded AAR?
AAR Corp.'s journey began in 1955 when Ira A. Eichner founded the company as I.A. Allen Industrial. Eichner's vision was to supply radio equipment to the commercial aviation sector, drawing on his experience in the used electrical parts market and the abundance of surplus aircraft parts available after World War II and the Korean War. The company was officially incorporated as Allen Aircraft Radio Inc. in 1955, marking its formal entry into the aviation industry.
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Ira A. Eichner established the company to serve the commercial aviation sector. His initial focus was on supplying radio equipment. |
The company leveraged experience in used electrical parts and surplus aircraft components. It was initially named I.A. Allen Industrial. |
In 1955, the company was formally incorporated as Allen Aircraft Radio Inc. This solidified its commitment to the aviation industry. |
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An FAA repair station was established in Elk Grove Village, Illinois, in 1962. The company went public in 1967, raising $1 million with shares priced at $10. |
The company rebranded to AAR Corp. in 1970. This change reflected its expanded services beyond radio equipment. |
David P. Storch, Ira Eichner's son-in-law, joined the company and later assumed the role of CEO. This indicated a continuation of leadership influence from the founding family. |
The initial ownership structure of AAR Corp. was closely tied to its founder, Ira A. Eichner. While specific equity splits from the earliest days are not detailed, the company's public offering in 1967 was a pivotal moment, broadening its ownership base. This move allowed external investors to participate in the company's growth, shifting the ownership landscape from a private, founder-centric model to one that included public shareholders. The rebranding to AAR Corp. in 1970 further signaled its evolution and diversification within the aviation services sector. The subsequent involvement of David P. Storch, Eichner's son-in-law, in leadership roles suggests a blend of founding family influence and professional management as the company matured. Understanding the Revenue Streams & Business Model of AAR provides context for how this ownership structure supported its operations and growth.
The early years of AAR Corp. were marked by significant developments that shaped its ownership structure and operational scope.
- 1955: Founded as I.A. Allen Industrial by Ira A. Eichner, later incorporated as Allen Aircraft Radio Inc.
- 1967: Went public with an over-the-counter offering, raising $1 million.
- 1970: Rebranded to AAR Corp., indicating a broader scope of aviation services.
- Leadership Transition: David P. Storch, son-in-law of the founder, became CEO, ensuring continuity.
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How Has AAR’s Ownership Changed Over Time?
AAR Corp.'s ownership journey began with an over-the-counter listing in 1967, evolving to a New York Stock Exchange listing in 1980, marking a significant step in its public market presence. This transition facilitated greater access to capital and increased transparency for its shareholders.
| Shareholder | Shares Owned (as of filing date) | Voting Power | Dispositive Power | Percentage of Common Stock (approx.) |
|---|---|---|---|---|
| BlackRock, Inc. | 6,123,385 (sole voting) / 6,236,345 (sole dispositive) | Sole | Sole | N/A |
| The Vanguard Group, Inc. | 3,706,094 (sole dispositive) | Shared (22,953) | Sole | N/A |
| Dimensional Fund Advisors LP | 2,779,317 (sole voting) | Sole | N/A | N/A |
| State Street Corporation | 1,917,821 | Shared (1,796,147) | N/A | 5.3% |
As of July 2025, AAR Corp. holds a market capitalization of approximately $2.67 billion, with institutional investors being the dominant force in its ownership structure, controlling about 87.88% of the company's stock. This significant institutional backing underscores the confidence major financial entities place in the company's trajectory and management. The total number of outstanding Common Stock shares was 35,847,589 as of June 30, 2025. Insider ownership, comprising executives and directors, accounts for approximately 2.82% of the shares, indicating a vested interest from those directly involved in the company's operations.
The ownership landscape of AAR Corp. is heavily influenced by large institutional investors, who wield substantial voting power. This concentration of ownership can significantly impact corporate governance and strategic decisions.
- Institutional investors hold approximately 87.88% of AAR Corp. stock.
- Key institutional shareholders include BlackRock, Inc., The Vanguard Group, Inc., Dimensional Fund Advisors LP, and State Street Corporation.
- Insider ownership represents about 2.82% of the total shares.
- The company's market capitalization was around $2.67 billion as of July 2025.
- AAR Corp. has been publicly traded on the NYSE since 1980.
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Who Sits on AAR’s Board?
The Board of Directors at AAR Corp. is instrumental in guiding the company's strategic path and financial oversight. As of July 11, 2025, the board consists of 12 members, including Chairman, President, and CEO John M. Holmes. The board's composition reflects a blend of experience, with members appointed at various times, such as John W. Dietrich and Billy J. Nolen in 2023, Jeffrey N. Edwards in March 2024, and Hema Widhani in 2025.
| Director Name | Title | Appointment Year |
|---|---|---|
| John M. Holmes | Chairman, President & CEO | |
| Michael R. Boyce | ||
| John W. Dietrich | 2023 | |
| Jeffrey N. Edwards | 2024 | |
| Robert F. Leduc | ||
| Ellen M. Lord | ||
| Duncan J. McNabb | ||
| Billy J. Nolen | 2023 | |
| Peter Pace | ||
| Jennifer L. Vogel | ||
| Marc J. Walfish | ||
| Hema Widhani | 2025 |
AAR Corp. operates under a standard one-share-one-vote system, common for NYSE-listed entities, meaning each share typically carries one vote. This structure grants significant voting power to institutional investors, who collectively hold a substantial portion of the company's stock. As of January 17, 2025, insider ownership included John M. Holmes, Chairman, President & CEO, with 341,680 shares. The company's 2025 annual meeting of stockholders is scheduled for September 16, 2025, a key event for voting on director elections and executive compensation. While there are no reported proxy battles or activist campaigns for the 2024-2025 period, understanding AAR Corporation ownership is crucial for investors.
Institutional investors wield considerable influence over AAR Corp.'s corporate decisions due to their significant shareholdings. The one-share-one-vote principle ensures that voting power is directly proportional to the number of shares owned.
- Institutional investors hold the majority of AAR stock.
- The one-share-one-vote principle governs voting power.
- John M. Holmes, CEO, is an insider shareholder.
- The 2025 annual meeting will address director elections.
- AAR Corp. is publicly traded on the NYSE.
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What Recent Changes Have Shaped AAR’s Ownership Landscape?
Over the past three to five years, AAR Corp. has experienced a dynamic shift in its ownership landscape, driven by strategic acquisitions and divestitures. This period has seen the company solidify its market position and focus on core competencies, influencing its overall AAR Corporation ownership structure.
| Fiscal Year | Consolidated Sales | Adjusted Diluted EPS |
|---|---|---|
| 2025 | $2.8 billion | $3.91 |
| 2024 | $2.33 billion | $3.33 |
AAR Corp. has actively managed its portfolio, notably acquiring Trax in March 2023 for $120 million and Triumph Group's Product Support business in March 2024. These moves expanded its capabilities in aircraft MRO and component services. To further refine its focus, the company divested its Landing Gear Overhaul business in April 2025 for $51 million. Shareholder value has also been a consideration, with ongoing share repurchase programs, including the repurchase of 0.2 million shares for $10.1 million in Q4 FY2025. The company's financial performance reflects these strategic actions, with fiscal year 2025 sales reaching $2.8 billion, a 20% increase, and adjusted diluted earnings per share hitting a record $3.91. The aerospace aftermarket continues to show robust demand, a trend AAR Corp. is well-positioned to capitalize on, particularly with its Trax software solution and a strong pipeline of government opportunities. Understanding the Marketing Strategy of AAR provides further insight into these developments.
AAR Corp. acquired Trax in March 2023 for $120 million and Triumph Group's Product Support business in March 2024, enhancing its service offerings.
The divestiture of the Landing Gear Overhaul business in April 2025 for $51 million demonstrates a focus on core operations.
Fiscal year 2025 saw consolidated sales of $2.8 billion, a 20% increase, with record adjusted diluted EPS of $3.91.
The company continues to engage in share repurchases, with $42.5 million remaining on its program as of May 31, 2025.
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