Applied Aerospace & Defense (AADX) Registration filing summary

Company overview and business model

• Provides advanced design, engineering, and vertically integrated manufacturing for space and defense technology sectors, serving Space & Launch Systems, Defense Aviation & Airborne Systems, and C5ISR & Precision Strike Systems.

• Operates 11 U.S. facilities with ~1.5 million sq. ft. and over 1,500 employees, including 200+ engineers.

• Holds entrenched, long-term relationships with blue-chip defense contractors and next-gen tech innovators, with ~87% of revenue from sole/single-source contracts.

• Business model emphasizes IP-enabled processes, rapid prototyping, and full lifecycle support from design to sustainment.

Financial performance and metrics

• FY2025 revenue: $498.8M, up 24.8% YoY; pro forma revenue (including CBI): $604.3M.

• FY2025 net loss: $17.0M; pro forma net loss: $49.2M.

• FY2025 Adjusted EBITDA: $117.9M (23.6% margin); pro forma Adjusted EBITDA: $141.9M (23.5% margin).

• Q1 2026 revenue: $134.4M, up 21.0% YoY; pro forma Q1 2026 revenue: $152.0M.

• As of March 31, 2026: $1,060.1M contract backlog; $1,017.8M total indebtedness.

Use of proceeds and capital allocation

• IPO proceeds will be used primarily to repay outstanding term and revolving loans under the Credit Agreement.

• Remaining proceeds allocated to general corporate purposes, including working capital, operating expenses, and capital expenditures.

• No current intention to pay dividends; future earnings expected to be retained for business expansion.