The headline GAAP loss is non-operational and driven by IPO-related stock compensation; the core business is growing rapidly with strong backlog visibility. Monitor the Q3 2026 earnings for normalized EPS and margin expansion as IPO charges fade. The FY2026 guidance midpoint of $680M revenue implies ~30% YoY growth, which should support the stock if execution holds.
Price Chart
Executive Summary
Applied Aerospace & Defense reported record Q2 2026 revenue of $167.3M, up 47.4% YoY, but posted a GAAP net loss of $154.0M ($1.04/share) driven by $110.1M in stock-based compensation and IPO-related costs. The company guided FY2026 revenue to $670-690M and Adjusted EBITDA to $150-155M, and highlighted a $1.13B backlog and a pro forma net leverage reduction to 2.7x following its $683M IPO. The massive GAAP loss versus a consensus estimate of $0.01 EPS creates a headline miss, but the underlying operational performance (record revenue, 38.5% Adjusted EBITDA growth, strong backlog) is solid, making this a mixed report with a bullish operational core masked by one-time IPO charges.
Key Financial Metrics
Key Facts
- Record Q2 revenue of $167.3M, up 47.4% YoY
- GAAP net loss of $154.0M ($1.04/share) due to $110.1M stock-based compensation and IPO transaction costs
- Record Adjusted EBITDA of $36.4M, up 38.5% YoY
- Contract backlog grew to over $1.1B
- Completed $683M IPO, raising ~$635.6M in net proceeds, reducing pro forma net leverage to 2.7x
- FY2026 guidance: revenue $670-690M, Adjusted EBITDA $150-155M
Financial Impact
Revenue beat consensus by $12.1M (7.8%), but GAAP EPS of -$1.04 missed consensus of $0.01 by $1.05 due to one-time IPO charges. Adjusted EBITDA of $36.4M implies a 21.8% margin.
Risk Factors
- Integration of recent acquisitions could pressure margins or cause execution missteps
- Dependence on government defense spending and program renewals
- High share-based compensation may continue to dilute EPS in future quarters
- Post-IPO lockup expiration could create near-term selling pressure
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-055948 |
| Document: aadx-20260812.htm | 0001628280-26-055948 |
| Document: 0001628280-26-055948-index-headers.html | 0001628280-26-055948 |
| Document: 0001628280-26-055948-index.html | 0001628280-26-055948 |
| Document: 0001628280-26-055948.txt | 0001628280-26-055948 |
| 8-K Data (Synthetic) | 0001628280-26-055948 |
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%) |
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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%) |
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