AAR Corp Investor Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : John or Sean, Ken Herbert with RBC. I appreciate all the detail today. Can you talk about with all the investments, is there a point in time in which free cash flow really starts to inflect and some of these investments sort of mature, so to speak? And are you comfortable with giving some sort of framework here in this setting around what we should think about as a conversion rate of either adjusted operating profit or EPS in terms of free cash?

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Okay. That's helpful. And you've talked a lot about sort of organic investment opportunities within the parts business, both within USM and distribution, can you talk about what the guidance implies in terms of how much those investments are really going to grow over the next 2 to 3 years or 3 to 4 years, maybe level setting us with sort of the investments you made in fiscal '23, but should we see 15%, 20% growth, greater growth? How does those investments grow over the next 3 to 4 years?

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Okay, just one final question. As we look at Integrated Solutions is commercial a growth opportunity there? I know you cleaned that portfolio up but -- should we expect incremental investments there? Or is that just sort of steady state and a lot of the growth within that business on the government side?