AEVEX Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, reached $189.7 million, a 56.5% increase from $121.2 million in Q3 2025.
• Net loss for Q3 2026 was $16.8 million (8.8% margin), compared to net income of $9.9 million (8.2% margin) in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $30.8 million (16.2% margin), up from $17.8 million (14.6% margin) in Q3 2025.
• For the nine months ended September 30, 2026, total revenue was $608.2 million, and net income was $10.9 million.
• Free cash flow for the nine months ended September 30, 2026, was $34.6 million, compared to a negative $20.3 million in the same period in 2025.
• Cash and cash equivalents increased to $78.6 million as of September 30, 2026, from $27.9 million as of December 31, 2025.
• Deferred revenue increased to $46.8 million as of September 30, 2026, from $10.9 million as of December 31, 2025.
• Total debt decreased to $172.5 million (current portion of $4.4 million and long-term net of $168.1 million) as of September 30, 2026, from $258.5 million as of December 31, 2025.
• Net loss was driven by a $41.7 million increase in income tax provision and a $21.1 million increase in selling, general, and administrative expenses, partially offset by a $20.1 million increase in products gross profit.

Guidance and Future Outlook:

• Full-year 2026 total revenue guidance was raised to $820.0 million to $840.0 million, compared to the prior range of $700.0 million to $720.0 million.
• Full-year 2026 Adjusted EBITDA guidance was raised to $128.0 million to $132.0 million, compared to the prior range of $105.0 million to $111.5 million.
• Management estimates depreciation and amortization of approximately $30.0 million and net interest expense of approximately $13.0 million for the full year 2026.
• The company cited a compelling demand environment for affordable, operationally proven autonomous systems and a funded backlog supporting continued growth.
• Forward-looking statements note risks including potential changes in U.S. and foreign government budgets, spending priorities, and procurement processes.

Business Segments and Product Lines:

• The company now operates three reportable segments: Airborne Systems, Maritime Systems, and Global Solutions, following the acquisition of BlackSea Technologies.
• Airborne Systems segment revenue increased 67.1% to $147.8 million, driven by higher revenue from UAS products and support services.
• Airborne Systems Adjusted EBITDA increased 119.4% to $33.5 million, with a margin of 22.6%.
• Maritime Systems segment revenue increased 623.2% to $14.4 million, primarily due to the acquisition of BlackSea Technologies on September 8, 2026.
• Maritime Systems Adjusted EBITDA increased to $2.0 million, with a margin of 14.0%.
• Global Solutions segment revenue decreased 10.7% to $27.5 million, driven by lower revenue from aircraft modifications and testing products.
• Global Solutions Adjusted EBITDA decreased 66.1% to $1.5 million, with a margin of 5.4%.

Market and Competitive Landscape:

• Customers are seeking platforms capable of moving quickly from development to scaled production to support collaborative air, surface, and subsea missions.
• The company aims to build a differentiated multi-domain autonomous systems company across air, surface, and subsea domains.
• The acquisition of BlackSea Technologies expands capabilities across air, surface, and subsea domains and strengthens production infrastructure.

Risks and Challenges:

• Risks include the ability to successfully integrate BlackSea Technologies and execute on program development.
• The company relies on a limited number of major customers for a substantial portion of revenue.
• Potential reductions, delays, or changes in government budgets, spending priorities, and procurement processes pose risks.
• Challenges include increasing competitive pressures, the risk of failing to expand the customer base, and the difficulty of managing technological complexity and scaling manufacturing capacity.
• Risks also include the scarcity or increased cost of critical components, violations of export controls, and dependence on senior management and key employees.

Management Commentary and Tone:

• CEO Roger Wells stated the company delivered strong third-quarter results with revenue and Adjusted EBITDA growth and related margin expansion.
• Management expressed confidence to raise the full-year outlook based on third-quarter performance, end-market demand, and the addition of BlackSea.
• Management highlighted strategic priorities including scaling production, broadening mission and customer reach, investing ahead of the threat, and delivering collaborative, mission-focused solutions.

Other Key Points:

• AEVEX completed the acquisition of BlackSea Technologies on September 8, 2026, establishing Maritime Systems as a new reportable segment.
• The company conducted an IPO and a secondary offering in 2026, raising significant capital through proceeds from the IPO ($345.9 million net) and secondary offering ($148.8 million net).
• The balance sheet reflects a significant increase in goodwill to $600.1 million and customer relationships to $173.4 million following the BlackSea acquisition.
• The company reported a $41.7 million increase in the provision for income taxes as a primary driver of the net loss despite revenue growth.
• The company hosts an earnings conference call on November 11, 2026, at 5 pm Eastern Time.