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

Applied Aerospace & Defense (NYSE:AADX) posted its quarterly earnings data on Wednesday. The company reported $0.18 EPS for the quarter, topping the consensus estimate 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 Price Performance

Shares of Applied Aerospace & Defense stock traded down $1.59 during trading on Wednesday, hitting $9.13. 2,945,149 shares of the company’s stock traded hands, compared to its average volume of 1,773,657. Applied Aerospace & Defense has a 1 year low of $8.40 and a 1 year high of $24.24. The stock has a 50-day simple moving average of $11.50. The company has a quick ratio of 2.08, a current ratio of 2.51 and a debt-to-equity ratio of 0.51. The stock has a market cap of $1.57 billion and a PE ratio of -36.52.

Wall Street Analyst Weigh In

AADX has been the topic of several recent research reports. Weiss Ratings started coverage on Applied Aerospace & Defense in a research note on Friday, August 28th. They issued a “sell (d)” rating on the stock. Guggenheim assumed coverage on Applied Aerospace & Defense in a research report on Monday, September 14th. They issued a “buy” rating and a $30.00 price target for the company. Jefferies Financial Group set a $20.00 price objective on shares of Applied Aerospace & Defense in a research note on Monday, October 5th. Morgan Stanley decreased their target price on shares of Applied Aerospace & Defense from $24.00 to $16.00 and set an “equal weight” rating for the company in a report on Friday, October 16th. Finally, Royal Bank Of Canada dropped their target price on shares of Applied Aerospace & Defense from $21.00 to $18.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 28th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $23.11.

Applied Aerospace & Defense News Summary

These are some of the AADX news items that stood out recently:

• 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

Applied Aerospace & Defense Company Profile

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.