AADX Q2: Record Revenue, But IPO Vesting Drives $154M Net Loss
AADX sits 15% above its 52-week low of $16.57.
Summary
AADX reported record Q2 revenue but a large net loss due to IPO-related stock compensation. Debt was slashed using IPO proceeds, and backlog grew to $1.13 billion.
Key Events · Earnings and Guidance · AADX
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Record Revenue, Big Net Loss
Q2 revenue hit $167.3 million, up 47.4% year-over-year, but net loss was $154 million due to $110 million in IPO-triggered share-based compensation.
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Debt Slashed with IPO Proceeds
Company repaid $565 million of term loan principal and $56.1 million of revolving credit, reducing total debt from $643 million to $406 million.
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Backlog Grows to $1.13 Billion
Contract backlog increased $258.7 million during the first half of 2026, driven by the CBI acquisition and new orders.
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Adjusted EBITDA Up 38.5%
Adjusted EBITDA was $36.4 million for Q2, up from $26.3 million a year ago, with adjusted EBITDA margin of 21.8%.
Analysis · AADX · Manufacturing
Applied Aerospace & Defense posted record Q2 revenue of $167.3 million, up 47.4% year-over-year, but swung to a $154 million net loss. The loss was driven by $110 million in non-cash share-based compensation triggered by the IPO vesting, plus $26 million in interest expense and $31 million in income taxes. Excluding those one-time items, adjusted EBITDA was $36.4 million, up 38.5% from a year ago. The company also used IPO proceeds to pay down $621 million in debt, cutting total debt from $643 million to $406 million. Backlog grew to $1.13 billion, providing strong revenue visibility.
At the time of this filing, AADX was trading at $19.06 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.3B. The 52-week trading range was $16.57 to $24.24. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.