Applied Aerospace & Defense (AADX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $167.3 million, up 47.4% year-over-year, driven by strong demand across all core markets and contributions from recent acquisitions.

• Completed IPO in June 2026, raising $635.6 million in net proceeds, primarily used to repay debt and reduce pro forma net leverage to 2.7x.

• Grew contract backlog to over $1.1 billion, providing strong multi-year revenue visibility.

• Reported a net loss of $154.0 million, primarily due to $110.1 million in share-based compensation and IPO-related expenses.

• Delivered record Adjusted EBITDA of $36.4 million, up 38.4% year-over-year, with a 21.8% margin.

Financial highlights

• Q2 2026 revenue: $167.3 million, up from $113.5 million in Q2 2025.

• Adjusted EBITDA: $36.4 million (21.8% margin), up from $26.3 million (23.2% margin) in Q2 2025.

• Net loss: $154.0 million, compared to $4.7 million in Q2 2025, driven by IPO-related share-based compensation.

• Gross profit: $37.2 million (22.2% margin), up from $32.0 million (28.2% margin) in Q2 2025.

• Net cash used in operating activities was $82.1 million in the first half, driven by non-recurring IPO and acquisition costs and working capital build.

Outlook and guidance

• Full-year 2026 revenue expected between $670 million and $690 million; Adjusted EBITDA between $150 million and $155 million.

• Contract backlog at June 30, 2026 was $1.13 billion, up from $0.87 billion at year-end 2025.

• Fourth quarter anticipated to be the most significant for revenue.

• Effective tax rate for 2026 expected to be approximately 7%.

• Capital expenditures for 2026 expected to be around $50 million, focused on manufacturing efficiency and capacity expansion.