IPO is priced and shares will begin trading on NYSE. Monitor first-day price action and volume. The significant debt reduction strengthens the balance sheet, but the company remains unprofitable with high leverage. Track Q2 2026 earnings for post-IPO financials and guidance.
Executive Summary
Applied Aerospace & Defense priced its IPO of 32.5M shares at $20.00 per share, raising $650M gross ($614.25M net before expenses). Proceeds will repay $56.1M of its revolving credit facility and $548.2M of term loans, significantly delevering the balance sheet. The company, a space/defense manufacturer, has strong revenue growth (24.8% YoY in 2025) but remains net loss-making with $1.018B in debt pre-offering.
Key Financial Metrics
Key Facts
- IPO of 32,500,000 shares at $20.00 per share; total offering size $650,000,000.
- Underwriting discount $1.10 per share; net proceeds to company $614,250,000 before expenses.
- Net proceeds used to repay $56.1M revolving credit and $548.2M term loan borrowings.
- Post-IPO, Greenbriar Equity Group owns 81.0% of shares (78.7% if overallotment exercised).
- Shares to trade on NYSE under symbol AADX; underwriters have 30-day option for 4,875,000 additional shares.
- Company has $1.018B total debt as of March 31, 2026; revenue grew 24.8% in 2025 to $498.8M, but net loss was $17.0M.
Financial Impact
Gross proceeds $650M; net proceeds ~$604.3M after underwriting discounts and estimated expenses. Debt repayment of ~$604.3M significantly reduces leverage.
Risk Factors
- Substantial debt remains even after repayment (~$423.5M term loan still outstanding).
- History of net losses and negative operating cash flow ($72M used in Q1 2026).
- Concentrated ownership by Greenbriar (81%) limits minority shareholder influence.
- Dependence on U.S. defense spending which is subject to budget uncertainties.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B4 Filing (Primary) | 0001193125-26-256356 |
| Document: 0001193125-26-256356-index-headers.html | 0001193125-26-256356 |
| Document: 0001193125-26-256356-index.html | 0001193125-26-256356 |
| Document: 0001193125-26-256356.txt | 0001193125-26-256356 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 14, 2026 10w ago | Institutional Cluster | $18.12 $12.22 | ▼ −32.56% | ▼ −30.58% | $10.28 (−43.27%) |
Aug 12, 2026 10w ago | 8-K | $19.11 $11.54 | ▼ −39.61% | ▼ −37.72% | $10.28 (−46.21%) |
Aug 10, 2026 11w ago | 8-K | $21.52 $12.39 | ▼ −42.43% | ▼ −41.51% | $10.28 (−52.23%) |
Jun 29, 2026 17w ago | ANALYST-UPGRADE | $20.73 $18.01 | ▼ −13.12% | ▼ −12.84% | $10.28 (−50.41%) |
Jun 4, 2026 20w ago | Insider Cluster | $17.54 $23.08 | ▲ +31.58% | ▲ +29.72% | $10.28 (−41.39%) |
Jun 4, 2026 20w ago | 8-K | $17.54 $23.08 | ▼ −31.58% | ▼ −29.72% | $10.28 (+41.39%) |
Jun 4, 2026 20w ago | 424B4 | $18.60 $23.06 | ▲ +23.98% | ▲ +25.35% | $10.28 (−44.73%) |
Jun 3, 2026 20w ago | 3 | $18.60 $23.06 | ▲ +23.98% | ▲ +25.35% | $10.28 (−44.73%) |
Jun 3, 2026 20w ago | 3 | $18.60 $23.06 | ▲ +23.98% | ▲ +25.35% | $10.28 (−44.73%) |
Jun 3, 2026 20w ago | 3 | $18.60 $23.06 | ▲ +23.98% | ▲ +25.35% | $10.28 (−44.73%) |
US Market Status
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