This article is based on an official press release from ST Engineering.

ST Engineering Launches Integrated Airframe and Nacelle MRO Centre in Singapore

ST Engineering has officially opened a new integrated airframe and nacelle Maintenance, Repair, and Overhaul (MRO) service centre in Singapore. Announced on February 2, 2026, this facility marks a significant shift in the company’s operational strategy, becoming the first location within its global network to physically combine airframe and nacelle maintenance capabilities under a single roof.

The new centre is designed to function as a “one-stop shop” for airline operators, addressing long-standing industry challenges regarding logistical complexity and aircraft downtime. By co-locating these critical maintenance services, ST Engineering aims to streamline the supply chain and offer a more unified service experience for its commercial aerospace clients.

Integrated Solutions for Faster Turnaround

Traditionally, airframe maintenance and nacelle (engine housing) repairs are often handled as separate work scopes, sometimes requiring airlines to coordinate with different vendors or transport components to specialized off-site shops. This fragmentation can lead to increased administrative overhead and longer periods where the aircraft is out of service.

According to the company’s press release, the new Singapore facility eliminates this separation. Operators can now schedule nacelle maintenance concurrently with heavy airframe checks (such as C-checks). This concurrent processing is expected to significantly reduce “turnaround time” (TAT), a critical metric for airlines focused on maximizing fleet utilization.

Streamlining the Supply Chain

Beyond speed, the integration offers logistical benefits. Consolidating these services reduces the need to ship large nacelle components to separate locations, thereby cutting freight costs and minimizing the risk of transport-related delays. The facility utilizes advanced tooling and Original Equipment Manufacturer (OEM) approved processes to ensure technical consistency across both airframe and nacelle domains.

Jeffrey Lam, President of Commercial Aerospace at ST Engineering, highlighted the strategic value of this integration in a statement:

“This integrated service centre in Singapore strengthens our global MRO network and gives customers more flexibility… By streamlining communications, maintenance scheduling and work scope management, we now offer a true one-stop experience.”

Expanding Global MRO Footprint

While ST Engineering already operates specialized nacelle facilities in Stockholm, Baltimore, and Xiamen, the Singapore centre is unique in its hybrid operational model. This development is part of a broader expansion strategy for the company within the Asia-Pacific region and globally.

Recent Strategic Developments

The launch of this integrated centre follows a series of aggressive moves by ST Engineering to bolster its aerospace capabilities. In September 2025, the company opened a new facility in Paya Lebar, Singapore, designed to double its engine maintenance capacity for CFM56 and LEAP engines. More recently, in January 2026, the company secured a five-year exclusive nacelle MRO contract with LOT Polish Airlines for their Boeing 787 fleet, underscoring its growing influence in the nacelle market.

AirPro News Analysis

The Shift Toward Vertical Integration

The establishment of this integrated centre reflects a wider trend in the MRO sector toward vertical integration. As airlines face increasing pressure to optimize costs and reduce downtime, they are moving away from fragmented vendor networks in favor of providers who can handle larger portions of the aircraft maintenance scope. By combining airframe and nacelle services in a major aviation hub like Singapore, ST Engineering is positioning itself to capture a larger share of the market by simplifying accountability and logistics for its customers.

Sources

• ST Engineering Press Release
• The Straits Times (Contextual Reference)
• Asian Aviation (Contextual Reference)

This article is based on an official press release from VSE Corporation.

VSE Corporation to Acquire Precision Aviation Group in $2 Billion Deal

VSE Corporation (NASDAQ: VSEC) has announced a definitive agreement to acquire Precision Aviation Group (PAG) for approximately $2.025 billion. The transaction, described by the company as “transformational,” aims to solidify VSE’s position as a leading independent provider of aviation aftermarket distribution and repair services. The deal is expected to close in the second quarter of 2026, subject to customary regulatory approvals.

According to the official announcement, the acquisitions will significantly expand VSE’s maintenance, repair, and overhaul (MRO) capabilities. By integrating PAG’s network, VSE projects an increase in its pro forma 2025 aviation revenue by approximately 50%, adding roughly $615 million in annualized revenue.

Transaction Structure and Financing

The total consideration for the acquisition is valued at approximately $2.025 billion. VSE Corporation outlined the financial structure of the deal, which includes a mix of cash and equity:

• Cash Consideration: Approximately $1.75 billion.
• Equity Consideration: Approximately $275 million in VSE shares issued to the seller, GenNx360 Capital Partners.
• Earnout Potential: An additional $125 million may be paid based on PAG’s adjusted EBITDA performance in 2026.

To fund the cash portion of the transaction, VSE has secured a fully committed bridge facility. The company also noted that recent equity offerings have helped strengthen its balance sheet in preparation for strategic moves of this magnitude. GenNx360 Capital Partners will retain a minority equity stake in the combined entity following the close of the transaction.

Strategic Rationale and Market Impact

VSE Corporation views this acquisition as a critical step in its multi-year strategy to become a pure-play aviation aftermarket leader. The combination of VSE and PAG will create a global network comprising approximately 60 locations. The company expects the deal to be immediately accretive to margins, projecting that the high-margin nature of PAG’s business will drive VSE’s consolidated Adjusted EBITDA margin above 20% in the coming years.

John Cuomo, President and CEO of VSE Corporation, highlighted the strategic importance of the deal in a statement:

“This acquisition represents a pivotal moment for VSE and a major milestone in our strategy to build a scaled, differentiated, higher-margin aviation aftermarket platform.”

The acquisition brings deep technical expertise in avionics, components, and accessories to VSE, complementing its existing engine support and distribution services. VSE targets over $15 million in annualized run-rate synergies, which it plans to achieve through cross-selling opportunities, insourcing repairs, and operational efficiencies.

Profile of Precision Aviation Group

Headquartered in Atlanta, Georgia, Precision Aviation Group is a prominent provider of MRO services and supply chain solutions for mission-critical aircraft. The company operates 29 repair stations and distribution facilities worldwide. PAG serves a diverse range of sectors, including commercial aviation, business and general aviation (B&GA), rotorcraft, and defense.

Pratik Rajeevan of GenNx360 Capital Partners expressed confidence in the future of the combined platform:

“Our significant equity rollover reflects our conviction in PAG’s momentum and in VSE’s ability to scale the platform.”

AirPro News Analysis

This acquisition arrives at a time when the aviation aftermarket is experiencing heightened demand due to global fleet dynamics. With delays in new aircraft deliveries from major manufacturers, airlines are operating older aircraft for longer periods. This “aging fleet” trend directly benefits MRO providers like PAG and VSE, as older airframes require more frequent maintenance and parts replacement.

Furthermore, ongoing supply chain constraints have placed a premium on available inventory. By combining VSE’s distribution capabilities with PAG’s repair stations, the merged entity is likely positioning itself to better control the supply chain and capture value from the current market scarcity. However, the significant cash component of the deal will increase VSE’s leverage, making the rapid realization of the projected $15 million in synergies and strong cash flow generation critical for de-leveraging in the post-acquisition period.

Financial Outlook

Prior to this announcement, VSE reported strong financial performance, with Q3 2025 revenue reaching $283 million, a 39% increase year-over-year. The company’s full-year 2025 revenue guidance was set between $1.1 billion and $1.15 billion. Following the integration of PAG, VSE anticipates a temporary spike in net leverage but targets a long-term ratio of 3.0x to 3.5x, intending to use free cash flow to reduce debt rapidly.

Sources: VSE Corporation (Business Wire)

This article is based on an official press release from the City of Chandler.

C.E. Precision Assemblies Expands Aerospace Manufacturing Footprint in Chandler, Arizona

C.E. Precision Assemblies (CEPA), a manufacturers specializing in cable assemblies and wire harnesses for the aerospace and defense sectors, has announced a significant expansion of its operations in Chandler, Arizona. Now operating as an Amphenol company following recent acquisitions, CEPA has secured a new facility that will nearly quadruple its current operational footprint.

According to a press release issued by the City of Chandler, the company has signed a lease for a 39,757-square-foot facility located at 7155 W. Detroit St. within the West Chandler Employment Corridor. This move marks a major transition from their current location on West Frye Road, signaling a robust period of growth for the 35-year-old manufacturer.

The expansion is expected to generate between 20 and 30 new jobs over the next two years as the company scales its manufacturing lines to meet increasing demand from defense and aerospace clients. The move-in date is currently projected for May 2026.

Operational Expansion Details

The new facility represents a strategic upgrade in both size and capability. The 39,757-square-foot space is a modern flex-industrial building constructed in 2019. Unlike older industrial stock, this facility features 100 percent air-conditioning, a critical requirement for precision manufacturing in the Arizona climate, along with high ceilings and improved loading capabilities.

Greg Brinjak, Site Director for CEPA, emphasized the company’s long-standing relationship with the region in a statement provided by the city:

“We have been in Chandler for 35 years and need a larger facility to meet increased demand for our products. Continuing to grow in Chandler is important to us, and we are glad to have found a long-term home here.”

Real estate services for the transaction were managed by CBRE, representing CEPA, and Cushman & Wakefield, representing the landlord. The location places CEPA in the heart of the West Chandler Employment Corridor, a hub that already hosts major industry players such as Intel, Northrop Grumman, and Avnet.

Corporate Structure and Market Context

CEPA’s expansion occurs against the backdrop of significant changes in its corporate ownership. Founded in 1986, the firm was acquired by Trexon in October 2023. Subsequently, in November 2025, Amphenol Corporation (NYSE: APH), a Fortune 500 leader in interconnect systems, completed the acquisition of Trexon. Consequently, CEPA now operates under the Amphenol umbrella, leveraging the global resources of one of the world’s largest interconnect manufacturers.

Local officials have welcomed the reinvestment in the local economy. Chandler Mayor Kevin Hartke noted the significance of retaining established manufacturers:

“We congratulate C.E. Precision Assemblies as they expand their footprint in Chandler. We greatly appreciate their investment in our community and look forward to supporting their continued success.”

AirPro News Analysis

The expansion of C.E. Precision Assemblies highlights a broader trend of consolidation and scaling within the aerospace supply chain. As major defense primes ramp up production for missile systems, UAVs, and radar platforms, Tier 2 and Tier 3 suppliers like CEPA are under pressure to increase throughput.

The acquisition by Amphenol likely provided the capital confidence required to commit to a facility four times the size of the previous one. For the City of Chandler, retaining a legacy manufacturer that has now been absorbed into a Fortune 500 structure validates the West Chandler Employment Corridor’s status as a critical node in the U.S. defense industrial base.

Economic Impact

Beyond the physical expansion, the move reinforces the local labor market. The projected addition of 20 to 30 new employees adds to the region’s dense concentration of engineering and technical talent. Micah Miranda, Chandler’s Economic Development Director, highlighted the trust implied by the lease signing:

“When a company like CEPA chooses to reinvest in Chandler, it shows a tremendous amount of trust. They know Chandler is a stable, pro-business community that will be a partner in their growth.”

The facility’s location offers immediate access to Interstate 10 and the Loop 202 freeway, facilitating logistics for the transport of complex wire harnesses and RF/microwave cable assemblies essential to modern aerospace applications.

Sources:

• City of Chandler Press Release
• Amphenol Corporation
• Trexon