Applied Aerospace & Defense, Inc.

Applied Aerospace & Defense reported second-quarter revenue that surged 47.4% year over year to a record $167.3 million, alongside a net loss of $154.0 million driven primarily by share-based compensation and transaction costs tied to its June initial public offering. The Huntsville, Alabama-based manufacturer said growth spanned all three operating segments: Space and Launch Systems revenue rose to $38.8 million from $24.5 million, Defense Aviation and Airborne Systems grew to $78.9 million from $75.3 million, and C5ISR and Precision Strike Systems more than tripled to $49.6 million from $13.7 million. Adjusted EBITDA rose 38.5% to $36.4 million, contract backlog expanded to $1.13 billion, and the June IPO raised approximately $635.6 million in net primary proceeds through the sale of 34.2 million shares at $20.00 apiece, lowering pro forma net leverage to 2.7 times. Management guided full-year revenue to between $670 million and $690 million with adjusted EBITDA of $150 million to $155 million, though stripping out acquisitions completed during the year leaves organic revenue growth of $22.5 million, or 19.8%. Hedge fund ownership rose from zero to 33 funds after the debut while short interest stands at 9.27% of the float, and the stock trades at a forward earnings multiple of 30.67 as of September 22.

Applied Aerospace & Defense, a premier provider of advanced manufacturing for mission-critical space and defense applications, has appointed Elizabeth Robertson as executive vice president of business development. In this role, Robertson will lead enterprise growth, new program capture, and strategic customer relationships across the company's three core markets: Space & Launch Systems, Defense Aviation & Airborne Systems, and C5ISR & Precision Strike Systems. She joins from Leidos, where she served as vice president of business development for the Leidos Defense Sector Huntsville portfolio, and previously held leadership roles at Interstellar Technologies and Stratolaunch, as well as a 13-year career at NASA, including deputy chief engineer for the Space Shuttle program propulsion and integration team. Chris Rogers, president and chief strategy officer, highlighted her rare combination of technical depth and customer relationships, while Robertson expressed enthusiasm for partnering with the team to expand Applied's platform across the space and defense industrial base.

The total exit value of PE-backed companies in the aerospace and defense sector has already surpassed last year's total, jumping from $17.7 billion at year-end 2025 to $26.8 billion in the first half of 2026, according to PitchBook's Q2 2026 Aerospace and Defense Report. The market was carried by five major public listings in the sector, compared with zero in Q2 2025. The largest was the June listing of DPC Holdings, a UK-headquartered specialist manufacturer of metal parts for jet engines, which valued the business at $4.9 billion, providing an exit for J.F. Lehman & Company. Other top IPOs include the $3.4 billion listing of Global Medical Response, the $3.4 billion debut of Applied Aerospace & Defense, and a $2.2 billion exit for Aevex. The sector's success in exiting provides relief to an asset class with a logjam of aging portfolio companies, as private equity managers sit on over $860 billion in buyout NAV concentrated in funds that are seven years or older. In aerospace and defense, the quarter saw an exit count of 27, up 17.4% quarter-over-quarter and 22.7% year-over-year, while total deal count rose 10.9% quarter-over-quarter but deal value fell to $6.5 billion from $11.1 billion.

Applied Aerospace & Defense reported record second-quarter revenue of $167.3 million, up 47.4% year over year, driven by growth across all three core end markets and contributions from the CBI acquisition. Pro forma revenue growth was 21.3%, and adjusted EBITDA rose 38.5% to $36.4 million. The company posted a net loss of $154.0 million, primarily due to $110 million in share-based compensation from accelerated vesting of equity units at the IPO and other transaction costs. Contract backlog reached a record $1.13 billion, up from $871 million at the end of the prior fiscal year, providing visibility into 2027 and 2028. Full-year 2026 revenue guidance is $670 million to $690 million, with adjusted EBITDA expected between $150 million and $155 million.