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

Applied Aerospace & Defense (NYSE:AADX) released its earnings results on Wednesday. The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate 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 Stock Performance

Shares of Applied Aerospace & Defense stock traded down $0.92 on Wednesday, reaching $19.67. 1,543,838 shares of the company were exchanged, compared to its average volume of 1,338,605. The stock’s 50 day moving average is $19.76. Applied Aerospace & Defense has a 1-year low of $16.57 and a 1-year high of $24.24.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the stock. UBS Group set a $24.00 price objective on shares of Applied Aerospace & Defense in a research note on Sunday, June 28th. Wall Street Zen upgraded shares of Applied Aerospace & Defense from a “sell” rating to a “hold” rating in a report on Saturday, June 27th. Bank of America initiated coverage on shares of Applied Aerospace & Defense in a research report on Monday, June 29th. They issued a “buy” rating and a $24.00 price target for the company. Robert W. Baird began coverage on shares of Applied Aerospace & Defense in a research note on Monday, June 29th. They issued an “outperform” rating and a $30.00 price target for the company. Finally, Stifel Nicolaus started coverage on Applied Aerospace & Defense in a research report on Monday, June 29th. They set a “buy” rating and a $24.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $24.62.

Insider Buying and Selling

In other news, Director James C. Katzman purchased 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The stock was bought at an average price of $20.00 per share, for a total transaction of $500,000.00. Following the completion of the purchase, the director directly owned 29,250 shares of the company’s stock, valued at $585,000. The trade was a 588.24% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Susan D. Lynch purchased 8,000 shares of the stock in a transaction on Thursday, June 4th. The shares were purchased at an average price of $20.00 per share, with a total value of $160,000.00. Following the acquisition, the director directly owned 8,000 shares in the company, valued at $160,000. This represents a ? increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought 58,500 shares of company stock worth $1,170,000 over the last 90 days.

Key Stories Impacting Applied Aerospace & Defense

Here are the key news stories impacting Applied Aerospace & Defense this week:

• Positive Sentiment: Second-quarter revenue reached a record $167.3 million, up 47.4% year over year and ahead of expectations. The company also reported a backlog of approximately $1.1 billion, supporting its longer-term growth outlook. Applied Aerospace & Defense Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Applied Aerospace & Defense issued fiscal 2026 revenue guidance of $670 million to $690 million, broadly consistent with the analyst consensus of $675.3 million. Fiscal 2026 Guidance
• Neutral Sentiment: Coverage highlighted Applied Aerospace & Defense as an aerospace-parts vendor benefiting from demand tied to space and defense programs, including its role as a SpaceX supplier. SpaceX supplier sinks on earnings; aerospace parts vendor soars
• Negative Sentiment: The company reported a second-quarter loss of $0.25 per share, missing the consensus estimate for a $0.01 profit by $0.26. The unexpected loss is the primary reason investors reacted negatively despite the revenue beat. Applied Aerospace: Q2 Earnings Snapshot

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.