Arxis (ARXS) Registration filing summary

Company overview and business model

• Designs and manufactures proprietary, mission-critical electronic and mechanical components for extreme environments, serving aerospace, defense, medical, and industrial markets.

• Operates a decentralized structure with 46 business units and 72 global manufacturing facilities, leveraging the Arxis EDGE business system for data-driven growth and execution.

• Revenue is highly recurring, with 90% from proprietary products designed into over 600 platforms and more than 5,000 customers.

• Growth strategy includes organic expansion via a “layer cake” model and disciplined M&A, with 32 acquisitions since 2019.

Financial performance and metrics

• 2025 revenue: $1.59 billion, net income: $46 million, Adjusted EBITDA: $571 million (35.9% margin).

• 2025 net income margin: 2.9%, with significant margin expansion over 2024.

• 2025 organic revenue growth: 8.9%; total revenue growth: 114.1% (driven by acquisitions).

• Free cash flow conversion: 454% in 2025; capital expenditures consistently below 3.3% of revenue.

• Segment split: 44% electronic components, 56% mechanical components.

Use of proceeds and capital allocation

• Net proceeds of ~$930 million (at $26.50/share midpoint); $746 million to repay term loan borrowings, remainder for working capital and general corporate purposes, including potential acquisitions.

• No current plans to pay dividends; focus on reinvestment and debt reduction.