AAR
AIR
Industrials
2
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
AAR is a global aerospace and defense company that provides aftermarket products and services, including aircraft maintenance, repair, and overhaul (MRO). The company operates in numerous active conflict zones, providing critical logistics and sustainment services that directly support military aviation operations. According to AFSC Investigate, AAR maintains a significant and active presence in conflict-affected regions, including through contracts that support military operations in Ukraine and the Middle East.
For a company with conflict zone operations to avoid exclusion under this policy, an affirmative argument is required that the civilian population would be materially worse off without the company's service. AAR's aviation MRO and parts supply services in these regions are not providing essential civilian infrastructure like heat or power; they are sustaining military air operations. This constitutes material support to activities in active conflict zones, falling under the exclusion criteria for companies that provide goods, services, or infrastructure that sustain armed conflict.
AAR Corp. is a global aerospace and defense company that derives material revenue from military contracting. According to the 2024 SIPRI Top 100 list, AAR’s arms sales totaled $3.5 billion. The company operates dedicated government solutions divisions that market specialized repair, engineering, and logistics services to military and defense customers. Recent contract awards illustrate this focus: in March 2026, AAR Manufacturing LLC was awarded a $159.8 million indefinite-delivery contract by the U.S. Air Force for aircraft parts, and in September 2025, AAR Allen Services Inc. secured a $25.1 million contract for the overhaul of CH-47 helicopter cylinder assemblies.
The company’s defense-related work includes the provision of ship-based and shore-based helicopter supply delivery and search-and-rescue services under U.S. Department of Defense contracts. AAR also manufactures specialized mobility solutions, such as lightweight cargo handling equipment, under contracts with the Defense Logistics Agency, explicitly designed to meet operational military requirements. This pattern of specialized products and services, coupled with defense revenue that places it among the world’s largest arms-producing companies, meets the threshold for exclusion.
Research Sources
1 organization
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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