Applied Aerospace & Defense Reports Second Quarter 2026 Financial Results

About this update from Applied Aerospace & Defense, Inc.

HUNTSVILLE, Ala., August 12, 2026 --( BUSINESS WIRE )--Applied Aerospace & Defense (NYSE: AADX) ("Applied" or "the Company"), a premier provider of advanced design, engineering, and vertically integrated manufacturing solutions for leading and next-generation space and defense technology companies, today reported its financial results for the second quarter ended June 30, 2026. Second Quarter 2026 & Recent Highlights: "The second quarter saw Applied successfully complete our initial public offering and begin our next chapter as a public company," said Trip Ferguson, Chief Executive Officer of Applied. "The IPO meaningfully strengthened our balance sheet and enhanced our financial flexibility, reducing pro forma net leverage to 2.7x, and provided new resources to invest in our people, our capabilities and our operations as we scale the business to support a broad and expanding range of our customers' most critical programs." "Applied is positioned at the intersection of two powerful, long term, and uncorrelated demand drivers: an unprecedented growth outlook for the commercial space economy and a dynamic global threat environment that necessitates highly capable advanced manufacturing capacity and major new investments in defense technology," Ferguson explained. "Across both end markets, the ability to manufacture highly engineered systems at the speed, quality, and scale required by our customers has never been more important. Applied was purpose-built for this mission. Our differentiated capabilities, long-tenured customer relationships and embedded positions across a diverse array of large and enduring programs of record and next-generation growth programs make us a trusted partner to the leading defense primes and bold new innovators in commercial space and defense technology." Ferguson continued, "Our second quarter performance reflects the strength of that position, with significant revenue growth across each of our three core markets. Demand for space and launch systems remains high, demand for precision strike systems continues to build rapidly, we are ramping several important next-generation programs, and aftermarket demand remains strong as we enable mission readiness for our customers' defense aviation fleets. Together with over $1.1 billion in backlog, this provides us with strong multi-year revenue visibility. We are also making progress integrating our recent acquisitions and adding qualified capacity in the areas where our customers need it most. Looking ahead, we remain focused on operational excellence, disciplined investment, and expanding our content on enduring and next-generation programs to drive profitable growth and create long-term value for our customers and shareholders." Second Quarter 2026 Financial Results Consolidated revenue was $167.3 million, up 47.4% compared to the prior year period of $113.5 million. Revenue growth in the second quarter of 2026 was driven by strength across all the Company's key end markets, reflecting continued demand for our highly engineered systems and contributions from recent acquisitions. Excluding the impact of acquisitions completed in 2026, revenue increased $22.5 million or 19.8%. The following table presents the Company's revenue disaggregated by end market for the three and six months ended June 30, 2026 and 2025: Revenue growth in Space and Launch Systems of $14.3 million was primarily attributable to increased volumes on launch vehicle and satellite production programs amid higher launch cadence and proliferated constellations. Revenue growth in Defense Aviation and Airborne Systems of $3.6 million was primarily attributable to sustained aftermarket demand across a large installed base of aircraft, as well as continued new production activity. Demand is supported by increases in global defense budgets across a broad range of fixed-wing and rotorcraft platforms, including increasing funding for next-generation fixed-wing, vertical lift, and autonomous airborne systems. Revenue growth in C5ISR and Precision Strike Systems of $35.9 million was primarily attributable to higher revenue across a range of integrated air and missile defense systems and radar programs. Near term demand is expected to remain supported by missile and munition rearmament, layered missile defense priorities, and continued national defense and budget investments in next-generation precision strike systems. Contract Backlog As of June 30, 2026, the Company had contract backlog of $1.13 billion. Contract backlog represents the total value of existing contracts, less amounts previously invoiced, as of the backlog date. Full Year 2026 Outlook For the full year 2026, the Company expects total revenue of between $670 million and $690 million, and non-GAAP Adjusted EBITDA of between $150 million and $155 million. Non-GAAP Adjusted EBITDA is provided in the full year 2026 Outlook on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because such reconciliation cannot be prepared without unreasonable effort given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant. Conference Call and Webcast Applied will host a conference call today at 8:30 a.m. Eastern Time to discuss the Company's financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Applied's website at https://investors.applied-ad.com /. For those unable to access the webcast, the conference call can be accessed by dialing (877) 407-0789 (domestic) or +1 (201) 689-8562 (international) and requesting the Applied Second Quarter 2026 Earnings Conference Call. An audio replay of the conference call can be accessed by dialing (844) 512-2921 (domestic) or +1 (412) 317-6671 (international) and providing the passcode 13761567. About Applied Aerospace & Defense Applied Aerospace & Defense, Inc. is a premier provider of advanced design, engineering, and vertically integrated manufacturing solutions for leading and next-generation space and defense technology companies. Applied builds complex, mission-critical hardware for extreme operating environments across three core markets: Space & Launch Systems, Defense Aviation & Airborne Systems, and C5ISR & Precision Strike Systems. With over 120 years of advanced manufacturing heritage, Applied employs a nationwide infrastructure of 11 purpose-built facilities across six states and more than 1.5 million square feet of production capacity, supported by IP-enabled process expertise for the full lifecycle management of rapid prototyping, large-scale production, and aftermarket sustainment of enduring platforms. Applied Aerospace & Defense is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol "AADX." To learn more visit www.applied-ad.com . Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including statements about our future results of operations, financial condition, business strategy, prospects, and plans and objectives. Forward-looking statements may be identified by words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will" or "would," the negative of these words, or similar terms or expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on our current expectations and projections about future events and trends we believe could affect our business, financial condition, results of operations, and prospects. These statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Such risks, uncertainties and other factors include, without limitation: You should not rely on forward-looking statements as predictions of future events. The forward-looking statements in this press release relate only to events as of the date on which the statements are made. Except as required by law, we undertake no obligation to update or revise any forward-looking statements to reflect events, circumstances, or new information after the date of this press release. We may not achieve the plans, intentions, or expectations in our forward-looking statements, and you should not place undue reliance on them. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments. Non-GAAP Financial Measures We present in this press release certain financial information based on our Adjusted EBITDA and Adjusted EBITDA Margin. The non-GAAP financial measures are supplemental measures of our performance that we believe help investors understand our financial condition and operating results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are unrelated to our core operating results and the overall health of our company. We believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance. When read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry. We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted to eliminate certain non-cash charges and other items not reflective of ongoing operations, which include: acquisition-related expenses, integration expenses and restructuring costs, share-based compensation expense and other costs. We define Adjusted EBITDA Margin as Adjusted EBITDA expressed as a percentage of revenue. Although we use Adjusted EBITDA and Adjusted EBITDA Margin and for the purposes described above, these non-GAAP financial measures have inherent limitations and should neither be considered in isolation nor as substitutes for analyzing our financial results as reported under GAAP. For example: Because of these limitations, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of cash available for investment in our business. Management addresses these limitations by evaluating these metrics alongside other GAAP measures, such as revenue, to assess our operating performance. These metrics are non-GAAP financial measures, are not defined by GAAP and should not be considered alternatives to net loss or cash flows from operations as determined under GAAP. Moreover, our methods of calculating Adjusted EBITDA and Adjusted EBITDA Margin may differ from those used by other companies with similarly titled measures and therefore may not be directly comparable. Adjusted EBITDA The following table sets forth the reconciliation of net loss to Adjusted EBITDA and presentation of net loss margin and Adjusted EBITDA margin for the three and six months ended June 30, 2026 and 2025: View source version on businesswire.com: https://www.businesswire.com/news/home/20260811723545/en/ Contacts David Myers, SVP Marketing & Strategy [email protected] Investor Contact: [email protected]

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