AAR Corp. completed the expansion of its Oklahoma City MRO facility, adding three maintenance bays that can service all 737 variants and creating 200 new full‑time positions.
The expansion is part of AAR’s strategy to scale its high‑margin Repair & Engineering segment and strengthens its partnership with Alaska Airlines, which will bring additional aircraft into the facility.
AAR’s Q2 FY2026 results showed revenue up 16% to $795 million and adjusted earnings per share up 31% to $1.18, driven by robust demand in the Repair & Engineering segment and operational leverage from the new capacity.
Management highlighted the company’s investment in a paperless product and the digitization of maintenance processes, positioning AAR as the first third‑party MRO to go fully paperless, which is expected to improve efficiency and reduce cycle times.
Guidance for Q3 FY2026 projects total sales growth of 20‑22% and an adjusted operating margin of 9.8‑10.1%, reflecting confidence in continued demand and the impact of the new facility.
CEO John M. Holmes said, "We are grateful for Alaska Airlines' trust and support. This expansion marks a new chapter in our partnership and underscores our commitment to digital transformation," adding that the investment will help AAR capture growing demand for high‑margin services.
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