Precision Aerospace & Defense Group (PAD) Investor presentation summary

Global market dynamics and demand drivers

• U.S. and NATO defense budget growth is fueling long-term demand for aerospace manufacturing and sustainment, with U.S. defense spend projected to reach $961.6B in FY'26 and EU defense expenditure up 62.8% from 2020-2025.

• Aging fleets and OEM constraints are driving sustained MRO growth, while space launch activity is expanding rapidly, creating new opportunities.

Business overview and capabilities

• Projected FY'26 pro-forma revenue is $130.8M with $25.2M EBITDA, diversified across engineering & sustainment, precision manufacturing, and non-destructive testing.

• The group serves major OEMs, Tier-1 suppliers, and government agencies, with a portfolio spanning commercial aviation, defense, and space & energy.

• Key subsidiaries include Maney, V&M, Aerofab, Aerodyn, WestPro, SPM, and DSI, with a nationwide footprint near strategic customers and military sites.

Growth and M&A strategy

• Growth levers include organic expansion through operational efficiency, lean manufacturing, and cross-subsidiary collaboration.

• M&A targets are founder-owned, profitable businesses with complementary capabilities, aiming for immediately accretive transactions and platform expansion.

• The acquisition pipeline is disciplined, with 2-3 closings annually from a universe of 100-120 evaluated targets.