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

Applied Aerospace & Defense (NYSE:AADX) released its quarterly earnings results on Wednesday. The company reported $0.18 earnings per share for the quarter, topping 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 Trading Down 14.6%

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

Recent Applied Aerospace & Defense Headlines

Investors following AADX have been watching these headlines:

• 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

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Weiss Ratings began coverage on shares of Applied Aerospace & Defense in a research note on Friday, August 28th. They set a “sell (d)” rating on the stock. Royal Bank Of Canada reduced 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 report on Wednesday, October 28th. 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 research note on Friday, October 16th. Guggenheim started coverage on shares of Applied Aerospace & Defense in a research note on Monday, September 14th. They issued a “buy” rating and a $30.00 target price for the company. Finally, Bank of America lowered their price target on shares of Applied Aerospace & Defense from $24.00 to $23.00 and set a “buy” rating for the company in a report on Friday, August 14th. Two investment 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 given a Sell rating to the company. According to data from MarketBeat, Applied Aerospace & Defense currently has a consensus rating of “Moderate Buy” and an average price target of $23.11.

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.