Applied Aerospace & Defense (NYSE:AADX) Posts Quarterly Earnings Results, Misses Estimates By $0.26 EPS

Applied Aerospace & Defense (NYSE:AADX) posted its quarterly earnings results on Wednesday. The company reported ($0.25) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.26), Zacks reports.

Here are the key takeaways from Applied Aerospace & Defense’s conference call:

• Record growth and backlog: Second-quarter revenue rose 47.4% year over year to $167.3 million, while adjusted EBITDA increased 38.4% to $36.4 million. Contract backlog reached a record above $1.1 billion, providing visibility through 2026 and into 2027.
• Strong outlook maintained: Management reaffirmed 2026 guidance of $670 million–$690 million in revenue and $150 million–$155 million in adjusted EBITDA, with revenue expected to build through the year and the fourth quarter projected to be the largest.
• Balance sheet strengthened by IPO: The offering generated $635.7 million in net proceeds, enabling debt repayment of $626.2 million and reducing pro forma net leverage to approximately 2.7x. The company also expects to generate positive free cash flow in the second half.
• Near-term margin and cash-flow pressures remain: Gross margin was affected by the ramp-up of early-stage programs and learning-curve costs, while first-half operating cash flow was negative $82.1 million due to IPO and acquisition costs and a $36 million working-capital build. Supply-chain congestion and raw-material inflation are additional risks, though management expects margin improvement as programs mature.
• Demand momentum spans key markets: Management cited continued strength in commercial space, defense aviation aftermarket activity, collaborative combat aircraft, precision strike, and solid rocket motor cases, alongside an active M&A pipeline and opportunities with both major defense primes and newer entrants.

Applied Aerospace & Defense Price Performance

Shares of Applied Aerospace & Defense stock traded down $1.26 during trading on Wednesday, hitting $19.33. The company’s stock had a trading volume of 1,304,213 shares, compared to its average volume of 1,332,396. Applied Aerospace & Defense has a 52 week low of $16.57 and a 52 week high of $24.24. The business’s fifty day moving average price is $19.76.

Wall Street Analysts Forecast Growth

AADX has been the topic of a number of recent analyst reports. Morgan Stanley initiated coverage on shares of Applied Aerospace & Defense in a report on Monday, June 29th. They issued an “equal weight” rating and a $23.00 price target on the stock. Robert W. Baird initiated coverage on Applied Aerospace & Defense in a research note on Monday, June 29th. They issued an “outperform” rating and a $30.00 target price on the stock. Royal Bank Of Canada assumed coverage on Applied Aerospace & Defense in a report on Monday, June 29th. They set a “moderate buy” rating and a $24.00 price target on the stock. Wolfe Research started coverage on Applied Aerospace & Defense in a research note on Monday, June 29th. They issued an “outperform” rating and a $23.00 price target for the company. Finally, Zacks Research raised shares of Applied Aerospace & Defense to a “hold” rating in a research report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $24.62.

Insider Buying and Selling

In related news, CFO Jeffrey L. Mcrae purchased 25,000 shares of the company’s stock in a transaction dated Thursday, June 4th. The shares were purchased at an average cost of $20.00 per share, with a total value of $500,000.00. Following the transaction, the chief financial officer directly owned 25,000 shares in the company, valued at $500,000. This trade represents a ∞ increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director James C. Katzman purchased 25,000 shares of the company’s stock in a transaction dated Thursday, June 4th. The stock was bought at an average cost of $20.00 per share, for a total transaction of $500,000.00. Following the completion of the transaction, the director owned 29,250 shares in the company, valued at approximately $585,000. This represents a 588.24% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 58,500 shares of company stock valued at $1,170,000 over the last quarter.

Applied Aerospace & Defense Company Profile

Applied Aerospace and Defense Inc specializes in providing advanced design, engineering and vertically integrated manufacturing solutions for next-generation space and defense technology companies. Its core service offerings include design and analysis, fabrication and assembly and inspection, qualification and testing. Applied Aerospace and Defense Inc is based in HUNTSVILLE, United States.