Arxis (ARXS) investor relations material

Executive summary

• Q3 revenue rose 36.0% YoY to $564.0M, including 28.7% organic growth; Adjusted EBITDA was $255.9M, up 67%, with a 45.4% margin.

• Strong operating results and acquisitions supported higher FY26 guidance and initial FY27 guidance for continued organic growth and margin expansion.

Financial highlights

• Q3 net income was $83.7M versus a $10.1M loss; gross profit increased 49.8% to $306.1M.

• Q3 Free Cash Flow was $150M, up 117% YoY; nine-month Free Cash Flow was $301.7M versus $116M.

• Nine-month revenue rose 27.5% to $1,523.6M; net income was $132.1M versus a $43.7M loss.

• Q3 Adjusted Net Income rose 498% to $160M; diluted Adjusted EPS was $0.37 and GAAP diluted EPS was $0.20.

Outlook and guidance

• FY26 revenue guidance rose to $2.05B–$2.07B, up $90M at the midpoint; expected growth is 29%–30% reported and 21%–22% organic.

• FY26 Adjusted EBITDA guidance increased to $855M–$865M, up $65M at the midpoint; margin guidance is ~41.7%, including 30–40 bps of acquisition dilution.

• FY27 revenue guidance is $2.4B–$2.5B, implying 17%–21% reported and 10%–15% organic growth.

• FY27 Adjusted EBITDA guidance is $1.01B–$1.06B, with a 42.1%–42.4% margin and 20–30 bps of acquisition dilution.

• FY27 assumptions include mid-single-digit pricing and new business, plus 0%–5% continued ramp capture; long-term targets are high-single-digit organic revenue growth and low-double-digit Adjusted EBITDA growth.