Applied Aerospace & Defense (NYSE:AADX) Posts Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Applied Aerospace & Defense earned $0.18 per share, beating the $0.09 consensus estimate. Third-quarter revenue rose 48.6% year over year to a record $182.1 million, with bookings of about $254 million.
• The company cut its 2026 outlook to $660 million–$670 million in revenue and $137 million–$142 million in adjusted EBITDA, below analyst revenue expectations. Approval delays and supplier constraints are expected to push $15 million–$20 million of rotorcraft aftermarket revenue into 2027.
• Gross margin declined to 23.5% from 28% a year earlier amid ramp-up costs, supply constraints, and productivity issues. Management expects gradual improvement, targeting a return to the high-20% range in the second half of 2027.

Applied Aerospace & Defense (NYSE:AADX - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.09, Zacks reports.

Here are the key takeaways from Applied Aerospace & Defense's conference call:

• Applied Aerospace reported record third-quarter revenue of $182.1 million, up 48.6% year over year (20.2% organic growth), and bookings of about $254 million. Funded backlog approached a record $1.3 billion, providing substantial forward visibility.
• The company lowered its 2026 outlook to revenue of $660 million–$670 million and Adjusted EBITDA of $137 million–$142 million. Approval delays and supplier constraints are expected to shift $15 million–$20 million of rotorcraft aftermarket revenue into the first half of 2027.
• Gross margin fell to 23.5% from 28% a year earlier; excluding specified non-cash costs, it was 25.2%. Program ramp-up expenses, equipment delays, supply constraints, and productivity issues are pressuring margins, with management expecting a gradual improvement and a return to the high-20% range in the second half of 2027.
• Management highlighted continued demand across space, defense aviation, and precision strike, including new awards and expanding production opportunities. The company plans about $50 million of 2026 capital spending to add capacity, particularly for defense programs, before returning to more normalized investment levels in 2027.

Applied Aerospace & Defense Stock Performance

Shares of NYSE:AADX traded down $1.57 during trading on Wednesday, reaching $9.15. 2,876,563 shares of the stock were exchanged, compared to its average volume of 1,773,657. Applied Aerospace & Defense has a 12-month low of $8.40 and a 12-month high of $24.24. The company has a 50-day moving average price of $11.50. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.08 and a current ratio of 2.51. The firm has a market capitalization of $1.58 billion and a price-to-earnings ratio of -36.60.

Analyst Ratings Changes

Several equities research analysts recently issued reports on AADX shares. Morgan Stanley decreased their target price on shares of Applied Aerospace & Defense from $24.00 to $16.00 and set an "equal weight" rating on the stock in a research report on Friday, October 16th. Jefferies Financial Group set a $20.00 price target on shares of Applied Aerospace & Defense in a report on Monday, October 5th. Guggenheim began coverage on shares of Applied Aerospace & Defense in a research note on Monday, September 14th. They set a "buy" rating and a $30.00 price objective for the company. Bank of America lowered their price objective on shares of Applied Aerospace & Defense from $24.00 to $23.00 and set a "buy" rating for the company in a research note on Friday, August 14th. Finally, Royal Bank Of Canada dropped their price objective on Applied Aerospace & Defense from $21.00 to $18.00 and set an "outperform" rating for the company in a report on Wednesday, October 28th. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $23.11.

Key Applied Aerospace & Defense News

Investors following AADX have been watching these news items:

• Positive Sentiment: Third-quarter revenue increased 48.6% year over year to $182.1 million, while earnings of $0.18 per share topped the $0.09 consensus estimate. Article: Applied Aerospace & Defense reports Q3 revenue growth
• Positive Sentiment: Strong demand in the space and defense sectors continues to support growth for the company, a supplier to SpaceX. Article: SpaceX Supplier Applied Aerospace & Defense Is Doing Just Fine
• Negative Sentiment: Management’s fiscal 2026 revenue guidance of $660 million to $670 million is below the roughly $682 million analyst consensus. The weaker-than-expected outlook may outweigh the strong quarterly results and weigh on investor sentiment. Article: Applied Aerospace & Defense reports Q3 revenue growth and 2026 guidance

About Applied Aerospace & Defense

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.

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