Parker Aerospace Targets Faster Turn Times And Predictive Maintenance Gains

Doug Dilley, Parker Aerospace group vice president of services and support operations and Mark Mourani, vice president of global commercial aftermarket, discuss with James Pozzi the company’s record aftermarket growth, the effects of its Meggitt acquisition, and how it is tackling capacity and supply chain challenges while preparing for the next phase of digital transformation.

How’s business performing now across your different product segments? Dilley: We continue to see really strong growth in the industry. The commercial side of the business is growing in mid-double digits, while the military segment is not quite as strong but still growing year over year. We’re quite bullish about the next five years, largely driven by continued expansion on the commercial side.

Is that despite the delays we’re seeing with new aircraft programs? Mourani: Exactly. The continued delays in the ramp-up of new aircraft deliveries are pushing out retirements. Demand for new aircraft seems to be slowing down somewhat, but because of the supply chain constraints on new aircraft deliveries pushing out retirements, older aircraft are staying in service longer, which supports MRO demand.

Are you seeing that demand across both narrowbody and widebody segments? Mourani: Yes, demand is steady across both, but the single-aisle segment especially remains the biggest MRO driver. For example, the Airbus A320 family alone is projected to reach around $9 billion in annual MRO spend. It’s also forecasted to have the highest compound annual growth rate because of its sheer fleet size.

How is Parker positioned to capture that demand? Mourani: We’ve broadened our product line significantly following the completion of the merger with Meggitt in 2022. Combined with the industry trend of larger airlines wanting to work more closely with OEMs and our expansion into digital and predictive maintenance, it’s an environment where we’re in a strong position to thrive.

Dilley: The main challenge is simply keeping up with that demand. Some of our divisions have grown output by 40% in the last year, and that is still not enough, and we still need another 30-40% to meet customer needs. That’s total growth across both the OEM and aftermarket side of the business. It’s rare to see that kind of increase in such a short period—nearly doubling output in two years.

What’s the current revenue split between OEM and aftermarket? Dilley: It fluctuates, but it’s roughly a 50-50 split, sometimes 51-49.

Mourani: Fiscal 2025 marked the first time in our history that aftermarket revenues surpassed those of the OEM.

Are turnaround times (TAT) still being affected by supply chain constraints? Dilley: They are, and that’s why TAT is a top focus for us at a group level. We’re a decentralized organization with 11 operating divisions and our services and support group acting as the customer-facing front end. At the group level, our annual improvement priority program is focused on implementing aftermarket service models to achieve the TATs our customers need—getting down to 15–20 days for commercial work and 45 days for military. Some repair hubs are already hitting the mid-20s, but we still have work to do across the board.

Are you seeing improvements in supply chain performance? Dilley: Yes, but it’s very product-specific. Some lines—like braking systems, castings and forging—remain constrained due to limited global capacity. Others, such as electrical components, are starting to ease as global production ramps back up.

Mourani: There’s only so much forging capacity. It’s impacting our braking systems division quite heavily. As said, it is very much product line-dependent. But we still see “whack-a-mole” issues that pop up unexpectedly.

What are Parker’s other main aftermarket challenges at present? Dilley: We have to expand our capacity output and turnaround speed to meet demand without compromising quality. And uncertainty. Market variables—supply chain, rates, global instability—are constantly shifting. The challenge is making confident business decisions in a dynamic environment.

As mentioned, the Meggitt acquisition was finalized in 2022. How has that extensive process progressed? Dilley: Very well. At the total company level, the integration has been successful, and we’re now mostly done discussing it externally. In the aftermarket, integration is ongoing, but we’ve come a long way and managed to successfully bring in that breadth.

Mourani: Meggitt’s commercial-to-military split shifted our overall mix from roughly 60-40 to about 70-30, favoring commercial, which is really driving the business. Also, Meggitt’s product lines differ in that they have a higher share of expendable and unrepairable parts. Historically, Parker’s aftermarket business was 60% MRO and 40% spares, while Meggitt’s was 20% MRO and 80% spares. The first major step we took was integrating the spares teams, which was previously regional, into a single, globalized structure. That made Meggitt’s product line instantly more visible under the Parker brand, making it also easier for existing customers to buy more, driving bookings up 40% year over year last year. More important, when we came together, because of those different pies, the unified company is closer to 50-50 now in terms of spares and MRO. Customers now see us as one unified supplier. Any global Parker representative can now support any global customer across the full product line—simplifying supplier management and improving responsiveness.

What about future acquisitions? Is Parker looking for more growth in the aftermarket through mergers and acquisitions? Dilley: We’re always evaluating opportunities that make sense strategically. Meggitt was obviously significant, but we continue to look for fits that enhance our capabilities. There’s not a specific aftermarket play per se, but we will explore opportunities that bring a strong aftermarket business with them.

How do you see Parker’s aftermarket activities growing? Mourani: Some products are growing much faster than others. The key is balancing our product portfolio and ensuring our network delivers the best value. We’re also looking to participate in new Air Transport Association chapters [that] are complementary, whether it is commercial or military, to further balance the portfolio. We now operate 19 repair stations in the Americas alone, with other locations in Europe and Asia-Pacific. With such a broad product portfolio, we’re evaluating where expansion—or optimization—makes the most sense. It’s one of our near-term strategic priorities.

You mentioned expanding in predictive maintenance and digital tools. What’s Parker’s approach there? Dilley: We’re focused on two main areas: predictive analytics and product life cycle traceability. How can we gather information to help improve services and support for our customers? The goal is to use operational data to identify trends in advance that could lead to unscheduled removals and prevent them from happening. It’s not significantly different to predictive platforms developed by the likes of Airbus and Boeing, who we are partnering with to see where we play in the market. Our approach isn’t to build a stand-alone platform to bring to the market but to deliver solutions that integrate into customers’ existing maintenance systems.

Mourani: We’re also helping operators use these tools to remove the right component the first time—reducing “no fault found” events. We have technologies like hydraulic leak detection in use now.

How do you see artificial intelligence (AI) fitting into the Parker business? Mourani: Customer service is where we see an immediate opportunity. AI can help improve responsiveness and consistency in how we interact with operators.

Dilley: It’s a huge space, but we’re being selective—focusing on a few high-impact areas rather than trying to do everything at once.