Leading position in the highly competitive and cyclical niche market for aircraft maintenance. Limited end-market and geographic diversity. Previously weak Expeditionary Services business should improve driven by the INL contract. Improving margins driven by the decision to sell the contractor-owned, contractor-operated (COCO) business. Stable credit metrics as earnings increase, but the company invests in new programs. Free cash flow can be constrained by working capital expenditure (capex) requirements to support new programs. Strong liquidity. S&P Global Ratings' stable outlook on AAR Corp. reflects our expectation that credit metrics will remain fairly stable as revenue growth driven by the INL/A contract and other new wins, contributions from bolt-on acquisitions, and improving margins from cost-cutting initiatives, will be offset by acquisitions and
