What AAR (AIR)'s Eaton Service Center Deal Means for Its EMEA Expansion Potential

• On October 15, 2025, Eaton announced that it signed an agreement with AAR CORP., naming AAR as an authorized service center for Eaton's commercial aerospace customers in Europe, the Middle East, and Africa, supporting local repair and overhaul of Eaton's hydraulic components at AAR's Amsterdam facility.
• This deal enhances AAR's technical capabilities and regional presence, while providing access to official OEM documentation and spares, positioning the company for possible future portfolio and geographic growth.
• We'll explore how AAR's expanded authorized service offering in EMEA impacts its ongoing investment narrative and future growth outlook.

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AAR Investment Narrative Recap

AAR appeals to investors who believe in the ongoing demand for independent aftermarket services in the global aviation sector and the company's ability to expand its footprint. The new Eaton service agreement in Amsterdam may strengthen AAR's position in EMEA, but the near-term impact on the company's most critical catalyst, expanding commercial MRO capacity, is likely incremental. The main risk remains exposure to airline cyclicality, which could pressure revenues and margins if sector demand declines.

Among recent announcements, AAR's multi-year distribution deal with AmSafe Bridport, signed in August 2025, also extends the company's presence in government and defense, a key area supporting revenue stability as commercial aviation remains cyclical. Both developments align with AAR’s focus on portfolio diversification and reducing reliance on any single market vertical, giving shareholders multiple growth pathways to watch.

In contrast, investors should be aware that competitive pressure from OEMs continues to present a risk for independent MRO providers like AAR, especially if...

Read the full narrative on AAR (it's free!)

AAR's outlook sees revenues reaching $3.2 billion and earnings reaching $293.3 million by 2028. This implies an annual revenue growth rate of 4.8% and an increase in earnings of $280.8 million from the current $12.5 million.

Uncover how AAR's forecasts yield a $91.00 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for AAR span from US$76.69 to US$131.55, with three individual perspectives reported. While many see attractive growth catalysts in AAR’s expanding MRO and defense activities, make sure to consider contrasting viewpoints on the risks of OEM competition and sector cyclicality before forming your own outlook.

Explore 3 other fair value estimates on AAR - why the stock might be worth as much as 54% more than the current price!

Build Your Own AAR Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AAR research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free AAR research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AAR's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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