AAR & Cebu Pacific Ink a Component Repair Contract for A320 Fleet

AAR Corp. AIR recently inked a multi-year deal to offer Cebu Pacific Air nacelle maintenance, repair and overhaul (MRO) services for the airline's A320 fleet. The work related to this contract will be executed at AAR's Component Services facility in Chonburi, Thailand.This agreement should further boost AAR’s well-established footprint in the aircraft MRO market.AAR’s Focus on Aircraft MRO Services The market for aircraft MRO in the Asia-Pacific (APAC) region has been witnessing solid growth trends in recent times, driven by factors like rapidly recovering air traffic in key aviation markets of China and India and an aging jet fleet in both commercial and defense space. To this end, the Mordor Intelligence firm projects the Asia-Pacific Aircraft MRO market to witness a CAGR of 6.3% during the 2025-2030 period.Such solid growth opportunities offered by the APAC aircraft MRO market must have prompted AAR, which is a renowned provider of aircraft MRO solutions to commercial and defense aircraft, to bolster its operations in the APAC region. Its latest agreement with Cebu Pacific seems to be in line with this strategy.With this same aim in view, AAR formed a joint venture with Air France Industries KLM Engineering & Maintenance in the APAC region in December 2024 to perform next-generation nacelle MRO services, such as on-wing/on-site inspections, and ensure extensive part availability for their esteemed clients.Opportunities for Other Aerospace Stocks Other aerospace contractors that are anticipated to benefit from the expanding aircraft MRO market in the APAC region are as follows:Airbus SE EADSY: The company has developed several MRO facilities in Australia that support both civil and military operations, enhancing Australia’s aerospace capabilities. The company provides MRO services for fixed-wing aircraft used by the Royal Australian Air Force.EADSY has a long-term (three to five years) earnings growth rate of 7.5%. The Zacks Consensus Estimate for 2025 sales suggests growth of 6.5% from the prior-year reported figure.Lockheed Martin LMT: Its Sikorsky Australia unit provides OEM-standard MRO, which includes all levels of aircraft maintenance. Its Nowra operation provides full sustainment solutions, which include operational, intermediate and deeper-level maintenance, training and total logistics support for the Royal Australian Navy's fleet of MH-60R Seahawk helicopters.LMT has a long-term earnings growth rate of 7.8%. The Zacks Consensus Estimate for 2025 sales implies growth of 4.6% from the prior-year reported figure.General Dynamics Corp. GD: The company’s unit, Jet Aviation's Component Services and Advance Manufacturing, based in Coopers Plains, Brisbane, Australia, provides a range of services for component repairs and overhauls, as well as modifications, customization and advanced manufacturing for customers in the Regional Airlines, Commercial, Civil and Defense segments.GD has a long-term earnings growth rate of 9.8%. The Zacks Consensus Estimate for 2025 sales calls for growth of 5.5% from the prior-year reported figure.AIR Stock Price Movement In the past three months, AIR shares have risen 3.7% against the industry’s decline of 4.2%.Image Source: Zacks Investment ResearchAAR’s Zacks Rank AAR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report AAR Corp. (AIR): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks