Applied Aerospace & Defense, Inc. (NYSE:AADX) reported third-quarter 2026 revenue of $182.1 million, representing a 48.6% increase from $122.5 million in the corresponding period of 2025, as higher demand across its aerospace and defense businesses contributed to quarterly results that exceeded analyst estimates.
Despite the quarterly performance, shares of the company declined 10% in premarket trading on Wednesday after its full-year revenue guidance fell below market expectations.
The aerospace and defense manufacturer reported adjusted earnings of $0.18 per share and adjusted EBITDA of $39.7 million, an increase of 37.4% compared with the previous year.
Applied Aerospace & Defense forecast full-year 2026 revenue of between $660 million and $670 million, compared with the analyst consensus estimate of $682.4 million.
The company also reported net income of $30.6 million for the quarter and a contract backlog of $1.26 billion as of September 30, 2026.
Applied Aerospace & Defense generated revenue of $182.1 million during the third quarter, compared with $122.5 million in the same period of 2025.
The increase of approximately $59.6 million reflected growth across all three of the company’s operating segments.
Excluding acquisitions completed during 2026, organic revenue increased 20.3% year over year.
The remaining growth was attributable to recently acquired businesses, which expanded the company’s capabilities in areas serving its aerospace and defense customers.
The company reported higher sales across space and launch systems, military aviation and advanced defense technologies.
Management identified demand across its end markets as a contributor to the quarterly revenue increase.
Applied Aerospace & Defense reported adjusted EBITDA of $39.7 million for the third quarter, representing an increase of 37.4% compared with the corresponding period of 2025.
The company also recorded adjusted earnings of $0.18 per share.
Reported net income reached $30.6 million during the quarter.
The adjusted EBITDA increase accompanied the company’s 48.6% revenue growth, reflecting higher business activity across its operating segments.
The reported results included contributions from acquisitions completed during 2026, alongside organic growth in the existing business.
The company did not provide a detailed reconciliation of adjusted earnings or adjusted EBITDA in the supplied announcement.
The Space and Launch Systems segment recorded a $9.3 million year-over-year increase in revenue during the third quarter.
The company attributed the growth to higher content supplied for launch vehicle programmes.
The segment provides products and capabilities supporting space and launch-related applications.
The increase in revenue reflected greater activity associated with customer launch vehicle programmes during the period.
Space and Launch Systems was one of three operating segments to report higher revenue compared with the third quarter of 2025.
Applied Aerospace & Defense reported a $13.9 million increase in revenue from its Defense Aviation and Airborne Systems segment.
The company attributed the growth primarily to continued aftermarket demand associated with military rotorcraft.
Aftermarket activities involve products and services supporting equipment already in operation, including replacement components and maintenance-related requirements.
The higher revenue contribution reflected demand for products supporting existing military aviation platforms.
The segment’s performance contributed to the company’s overall increase in quarterly sales.
The Advanced Sensing and Precision Strike Systems segment recorded the largest absolute revenue increase among Applied Aerospace & Defense’s three operating businesses.
Revenue rose by $36.3 million compared with the corresponding period of 2025.
The company attributed the increase primarily to higher sales of integrated air and missile defense systems.
The segment’s revenue growth contributed substantially to the company’s overall year-over-year increase.
Together, the three operating segments recorded higher sales associated with launch vehicle programmes, military rotorcraft aftermarket demand and integrated defense systems.
The reported segment increases reflected both organic business activity and the company’s expanded operating capabilities following acquisitions.
Chief Executive Officer Trip Ferguson said the company’s quarterly performance reflected demand across its operating businesses.
“Our third quarter reflected broad-based demand across our end markets,” Ferguson said.
“We delivered record revenue of $182.1 million and Adjusted EBITDA of $39.7 million.”
The comments followed the company’s reported increases in revenue and adjusted EBITDA.
Management also highlighted organic revenue growth of 20.3%, excluding acquisitions completed during 2026.
The company identified contributions from recently acquired businesses as another factor supporting its financial performance.
Applied Aerospace & Defense forecast full-year 2026 revenue of between $660 million and $670 million.
The midpoint of the guidance range is $665 million, approximately $17.4 million below the analyst consensus estimate of $682.4 million.
The company also expects full-year adjusted EBITDA of between $137 million and $142 million.
The midpoint of the adjusted EBITDA outlook is $139.5 million.
The guidance provides management’s expectations for the company’s financial performance during the remainder of 2026.
Although third-quarter revenue and earnings exceeded quarterly estimates, the full-year revenue forecast remained below market expectations.
The difference between the company’s outlook and analyst forecasts accompanied the 10% decline in its shares during premarket trading.
Applied Aerospace & Defense reported a contract backlog of $1.26 billion as of September 30, 2026.
The backlog represents contracted work that has not yet been recognised as revenue.
Management indicated that the order balance provides revenue visibility over multiple years.
The backlog reflects demand across the company’s aerospace and defense operations, although the supplied announcement did not provide a detailed breakdown by segment.
The timing of revenue recognition will depend on contract schedules, customer requirements and the delivery of products and services.
The reported backlog provides information about future contracted business activity but does not constitute a guarantee of revenue within a particular reporting period.
Applied Aerospace & Defense shares fell 10% in premarket trading after the company issued full-year revenue guidance below analyst expectations.
The decline followed quarterly results that included 48.6% revenue growth, a 37.4% increase in adjusted EBITDA and net income of $30.6 million.
All three operating segments reported higher revenue, with Advanced Sensing and Precision Strike Systems recording the largest absolute increase.
The company’s $1.26 billion backlog provides information about its contracted business activity extending beyond the current financial year.
However, the full-year revenue outlook of $660 million to $670 million was below the $682.4 million analyst consensus.
The company’s performance during the remainder of 2026 will determine its progress towards the stated revenue and adjusted EBITDA targets.
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