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A Snapshot of KLX’s Aerospace Solutions Segment

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About KLX Inc.

KLX Aerospace Solutions, which is KLX Inc.’s (KLXI) primary business, is a global provider of aerospace fasteners, consumables, and logistics services. The company also offers oilfield services and associated rental equipment in North America as KLX Energy Services.

For the fiscal year ended January 31, 2018, KLX had total revenues of ~$1.7 billion, up 16.5% YoY (year-over-year.) The company’s operating profit in that fiscal year was $260.7 million, an increase of 9.2% YoY. Its net earnings totaled $53.4 million, up 10.8% from $48.2 million in the last fiscal year.

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KLX’s Aerospace Solutions business

KLX’s Aerospace Solutions segment is a distributor of aerospace fasteners and consumables. The division also offers inventory management solutions for the worldwide business, commercial, and military markets. KLX offers services to manufacturers of business jets, commercial airliners, and defense OEMs.[1. original equipment manufacturers] It also serves airlines, fixed base operators (or FBOs), and maintenance, repair, and overhaul operators through its global facilities network.

KLX operates as a distributor for every major aerospace fastener manufacturer. The company’s systems support parts and internal distribution processes along with customer services such as bin management and kitting solutions.

In fiscal 2017, the Aerospace Solutions segment earned $1.4 billion in revenues, reporting 6.0% growth year-over-year. The division’s operating income totaled $238.5 million, up 8.1% from $220.6 million in fiscal 2016.

ETF discussion

Boeing (BA) tops the holdings of the Industrial Select Sector SPDR ETF (XLI), comprising ~7.8% of XLI’s portfolio. Investors who prefer indirect exposure to industrial stocks may consider investing in XLI. Industrial giants General Electric (GE), 3M (MMM), and Honeywell (HON) comprise ~5.2%, ~4.9%, and ~4.6%, respectively, of XLI’s holdings.

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