Aevex Corp.

05/20/2026 | Press release | Distributed by Public on 05/20/2026 14:11

Business/Financial Results (Form 8-K)

440 Stevens Ave. Ste 150 Solana Beach, CA 92075 aevex.com
For Immediate Release
AEVEX Corp. Announces Financial Results for First Quarter 2026
SOLANA BEACH, Calif., May 20, 2026 - AEVEX Corp. (NYSE: AVEX) ("AEVEX" or the Company)
announced results today for the three months ended March 31, 2026 ("First Quarter 2026").
First Quarter 2026 Highlights
•Total revenue of $216.7 million, up 307% from $53.3 million in Q1 2025
•Net Income of $21.0 million compared to a net loss of $27.3 million in Q1 2025
•Adjusted EBITDA* of $36.4 million compared to Adjusted EBITDA* of $(13.4) million in Q1 2025
Outlook for Full Year 2026
•Total revenue of $600.0 million to $620.0 million
•Adjusted EBITDA* of $88.0 million to $94.5 million
* See "Non-GAAP Financial Measures" below for an explanation of this measure. The Company is unable to provide a reconciliation for
forward-looking outlook of Adjusted EBITDA to net income (loss), the most closely comparable GAAP measure without unreasonable effort,
because certain material reconciling items cannot be estimated due to factors outside of the Company's control and could have a material impact
on the reported results. However, the Company estimates depreciation and amortization of approximately $21.3 million and interest expense of
approximately $13.2 million for the year ending December 31, 2026.
"AEVEX entered 2026 with strong momentum, and our first-quarter performance reflects both continued
execution and the robust demand for the battle-tested autonomous systems and mission software we deliver. Across
our portfolio, our teams are delivering on key programs while scaling production to meet customer needs with speed
and reliability in an increasingly dynamic global environment," said Roger Wells, CEO of AEVEX.
"We are particularly encouraged by the sustained customer adoption of our AI-enabled autonomy solutions
powered by CompassX, along with our next-generation solutions-capabilities that have been validated in
operational use and are increasingly central to customer modernization priorities.
As we move through the year, we remain disciplined in how we invest in innovation, manufacturing
capacity, and mission success. With a proven ability to deliver at scale, a robust pipeline, and deep alignment with
DoW and international allies' priorities, we believe AEVEX is well-positioned to create durable value for all
stakeholders. I'm proud of what our teams accomplished this quarter, and I'm confident in our continued execution
against our long-term objectives."
"AEVEX delivered a solid first quarter, driven by disciplined execution across both Tactical Systems and
Global Solutions and supported by funded backlog and healthy demand visibility. We saw balanced contributions
across our product and mission-solutions portfolios, continued progress in improving cash flow, and prudent capital
deployment. As we move further into the year, we remain focused on scaling efficiently, strengthening margins, and
investing in autonomy and software capabilities aligned with long-term customer demand, and our teams continue to
perform with discipline as we execute against our 2026 plan," said Todd Booth, CFO of AEVEX
Total revenues increased to $216.7 million from $53.3 million, or by $163.4 million, for the three months
ended March 31, 2026, compared to the same period in 2025. The increase is primarily due to $161.0 million of
higher revenues in our Tactical Systems segment primarily from UAS products and $4.3 million of higher revenue
in our Global Solutions segment from aircraft modifications and testing products and services, which is offset by
$2.2 million of lower revenue in our Global Solutions segment primarily from a decrease in mission support,
intelligence, surveillance, and reconnaissance services.
For the three months ended March 31, 2026, our net income (loss) increased to net income of $21.0 million
and a net income margin of 9.7% from a net loss of $(27.3) million and a net loss margin of (51.3)%, or by $48.3
million, compared to the same period in 2025. The increase was primarily driven by a $49.4 million increase in
products gross profit, a $4.0 million increase in services gross profit and a $6.2 million decrease in research and
development expenses primarily for UAS products and services development activities. These favorable impacts
were partially offset by a $10.8 million increase in selling, general and administrative expenses, primarily due to a
$3.8 million increase in audit and accounting fees related to our IPO process, a $3.0 million increase in new
employee-related costs and a $1.1 million repurchase of Incentive Units.
For the three months ended March 31, 2026, Adjusted EBITDA was $36.4 million and Adjusted EBITDA
margin was 16.8%. This is compared to Adjusted EBITDA of $(13.4) million and Adjusted EBITDA margin of
(25.1)% for the three months ended March 31, 2025. The increase was primarily driven by a $48.4 million increase
in Tactical Systems Adjusted EBITDA as a result of the increase in products revenue and decrease in research and
development expense for UAS products and services, which was partially offset by the increase in cost of products
revenue and the increase in selling, general and administrative expenses for new employee-related costs. In addition,
the increase was also driven by a $6.3 million increase in Global Solutions Adjusted EBITDA, primarily due to
higher revenue from aircraft modification and testing products and services, which is offset by lower revenue from
mission support, intelligence, surveillance, and reconnaissance products and services.
Segment Highlights
We measure the performance of our reportable segments based on total segment revenue and Segment
Adjusted EBITDA. Our operating and reportable segments are Tactical Systems and Global Solutions. The
following table presents total revenue by segment, Segment Adjusted EBITDA and Segment Adjusted EBITDA
margin (in thousands):
Three Months Ended March 31,
Change
2026
2025
$
%
Tactical Systems
Segment revenue
$190,797
$29,451
$161,346
547.8%
Segment Adjusted EBITDA
$38,521
$(9,867)
$48,388
Segment Adjusted EBITDA Margin
20.2%
(33.5)%
Global Solutions
Segment revenue
$25,896
$23,807
$2,089
8.8%
Segment Adjusted EBITDA
$4,201
$(2,103)
$6,304
Segment Adjusted EBITDA Margin
16.2%
(8.8)%
Tactical Systems
Tactical Systems segment revenue increased to $190.8 million from $29.5 million, or by $161.3 million
and 547.8%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The
increase is primarily due to $161.0 million of higher revenue from UAS products.
Tactical Systems Adjusted EBITDA increased to $38.5 million from $(9.9) million, or by $48.4 million, for
the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase is
primarily due to the increase in products revenue and the decrease in research and development expense for UAS
products and services, which was offset by the increase in cost of products revenue and the increase in selling,
general and administrative expenses for new employee-related costs.
Global Solutions
Global Solutions segment revenue increased to $25.9 million from $23.8 million, or by $2.1 million and
8.8%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The
increase is primarily due to $4.3 million of higher revenue from aircraft modifications and testing products and
services, which is offset by $2.2 million of lower revenue from mission support, intelligence, surveillance, and
reconnaissance products and services.
Global Solutions Adjusted EBITDA increased to $4.2 million from $(2.1) million, or by $6.3 million, for
the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase is
primarily due to higher gross profit from aircraft modification and testing products and services and mission support,
intelligence, surveillance, and reconnaissance services.
Funded Backlog
Funded backlog represents our estimate of the revenue we expect to realize in future periods as a result of
performing work on funded contracts that have been awarded to us (net of any revenue already recognized as of the
backlog date). We include the aggregate expected revenue from awarded contracts in our funded backlog upon the
execution of a legally binding agreement (e.g., written contract or purchase order), even though our contracts include
certain termination rights exercisable by our customers with advance notice. We exclude from funded backlog any
unfunded contract options and at-risk work. Deferred revenue recognized on our consolidated balance sheets
consists of payments and billings that we have received in excess of revenue that we have recognized. Because cash
receipts from these contracts have not been recognized into revenue, they are included in our backlog calculation.
We view funded growth in backlog as a key measure of our future business prospects. We monitor our funded
backlog because we believe it is a forward-looking indicator of potential sales that can be helpful to investors in
evaluating the performance of our business and identifying trends over time. Although funded backlog reflects
business associated with contracts that are considered to be firm, terminations, amendments, or contract
cancellations may occur, which could result in a reduction in our total backlog and potential future revenue that
never gets recognized.
March 31, 2026
December 31, 2025
Funded backlog
$356,623
$503,123
Funded backlog includes both single and multi-year awards, and fluctuations in backlog are driven
primarily by the timing of large program wins. The decrease of $146.5 million in funded backlog for the three
months ended March 31, 2026 was primarily due to revenue recognized for the EUCOM AOR Deep Strike program
during the three months ended March 31, 2026. We expect to convert approximately 93.0% of the total $356.6
million of funded backlog as of March 31, 2026 into revenue during the remainder of 2026.
In addition, our funded backlog is subject to meaningful customer concentration risk. As of March 31,
2026, approximately 73.9% of the total dollar value of our funded backlog related to the U.S Government. For
purposes of evaluating our funded backlog, we consider all U.S. Government entities to be one customer.
Additionally, funded backlog that is originally funded through U.S. Government efforts is considered to be U.S.
Government backlog even if the program is directly contracted through an intermediary.
Business Outlook for the Full Year 2026
For the full fiscal year 2026, the Company expects total revenue of between $600.0 million and $620.0
million, and Adjusted EBITDA* between $88.0 million and $94.5 million, excluding any future acquisitions.
* See "Non-GAAP Financial Measures" below for an explanation of this measure. The Company is unable
to provide a reconciliation for forward-looking outlook of Adjusted EBITDA to net income (loss), the most closely
comparable GAAP measure without unreasonable effort, because certain material reconciling items cannot be
estimated due to factors outside of the Company's control and could have a material impact on the reported results.
However, the Company estimates depreciation and amortization of approximately $21.3 million and interest expense
of approximately $13.2 million for the year ending December 31, 2026.
The foregoing estimates, which are based on information as of May 20, 2026, are forward-looking and
reflect management's view of current and future market conditions, subject to certain risks and uncertainties,
including certain assumptions with respect to our expectation that the government will remain open, that there will
not be prolonged continuing resolutions, and that the general contracting and funding environment does not
materially change. Investors are reminded that actual results may differ materially from these estimates and investors
should review all risks related to achievement of the guidance reflected under "forward-looking statements" below
and in the Company's filings with the Securities and Exchange Commission (the "SEC").
Investor/Analyst Conference Call
AEVEX Chief Executive Officer, Roger Wells, and Chief Financial Officer, Todd Booth, will host an
earnings conference call Wednesday, May 20, 2026, reviewing the first quarter results, followed by a question and
answer session. The call is scheduled to begin promptly at 5pm EST. Details on how to access the call can be found
on Events and Presentation section of the company's Investor Relations website. Analysts looking to participate live
on the call may register here: https://tinyurl.com/AVEXConferenceCall.
For more information, visit www.aevex.com.
About AEVEX
AEVEX Corp. (NYSE: AVEX) is a leading U.S. defense technology company delivering autonomous
unmanned systems, AI-enabled mission software, and advanced ISR and electronic warfare solutions for national
security customers. With vertically integrated engineering, rapid prototyping, and high-volume manufacturing across
multiple U.S. locations, AEVEX provides affordable, front-line-ready capabilities designed for contested and
GPS-denied environments. AEVEX's mission is to strengthen deterrence, enhance warfighter effectiveness, and
help ensure the United States maintains technological and industrial advantage in the era of autonomy.
Media Contact
Brian Manning
Investor Relations Contact
Jason Gursky
Aevex Corp. published this content on May 20, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 20, 2026 at 20:12 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]