AEVEX (AVEX) Q1 2026 earnings summary

Executive summary

• Achieved first earnings call as a public company after a successful IPO, raising $345.9 million in net proceeds and enhancing financial flexibility for growth and M&A.

• Revenue surged 307% year-over-year to $216.7 million in Q1 2026, driven by strong demand for autonomous systems, major defense contracts, and significant ramp in UAS production volume.

• Net income reached $21.0 million, reversing a net loss of $27.3 million in Q1 2025, with margin expansion and improved operational efficiency.

• Tactical Systems accounted for 88% of Q1 2026 revenue, reflecting a strategic focus on autonomous and AI-enabled defense products.

• Continued investments in new platforms, CompassX technology, and building high-performing teams to strengthen competitive positioning.

Financial highlights

• Q1 2026 revenue rose 307% year-over-year to $216.7 million, up from $53.3 million in Q1 2025, driven by Tactical Systems and the EUCOM Deep Strike program.

• Net income for Q1 2026 was $21.0 million (9.7% margin), compared to a net loss of $27.3 million (-51.3% margin) in Q1 2025.

• Adjusted EBITDA improved to $36.4 million (16.8% margin) from a loss of $13.4 million (-25.1% margin) year-over-year.

• Gross profit increased to $56.5 million (26.1% margin) from $3.1 million (5.7% margin) year-over-year.

• Operating cash flow was $10.4 million, up from a $20.1 million outflow in Q1 2025.

Outlook and guidance

• 2026 revenue guidance: $600–$620 million; adjusted EBITDA: $88–$94.5 million.

• Expect to convert approximately 93% of $356.6 million funded backlog into revenue during the remainder of 2026.

• Strategic priorities include expanding the pipeline, executing key investments, enhancing operational performance, and pursuing M&A.

• Guidance assumes stable government operations and funding environment.

• Depreciation and amortization estimated at $21.3 million, interest expense at $13.2 million for 2026.