AEVEX Corp. saw its stock price climb more than 10% in after-hours trading Wednesday, following the release of its first quarterly earnings report since going public in April. The drone manufacturer posted a net profit of $21.0 million for the first quarter, a sharp reversal from a $27.3 million loss in the same period last year. Revenue surged to $216.7 million, up 307% from $53.3 million a year earlier, easily beating analyst expectations of $200.9 million.
Key Financial Highlights
The company reported earnings per share of $0.22, surpassing the FactSet consensus estimate of $0.16. Adjusted EBITDA came in at $36.4 million, compared to a negative $13.4 million in the prior-year quarter. The strong performance was driven primarily by its Tactical Systems segment, which builds unmanned and autonomous defense products. Revenue from that division jumped to $190.8 million from $29.5 million a year ago. The Global Solutions segment, which handles aircraft modification and mission support, also grew, rising to $25.9 million from $23.8 million.
New Air Force Contracts
Adding to the positive news, AEVEX announced it had secured $15.6 million in new contracts from the U.S. Air Force. These awards are for supporting advanced unmanned aircraft mission capabilities and modular airborne system integration, utilizing the company's long-range one-way attack platform—a system designed to fly to a target without returning. CEO Roger Wells emphasized the company's ability to deliver "mission-aligned capabilities at scale."
Raised Guidance and Market Context
Management raised its full-year 2026 revenue guidance to a range of $600 million to $620 million, up from previous expectations. Adjusted EBITDA is now forecast between $88 million and $94.5 million. CFO Todd Booth noted the company's focus on "scaling efficiently" and "strengthening margins." The stock, which closed regular trading at $26.27, down 0.23%, saw the after-hours surge as investors reacted to the strong debut quarterly report.
AEVEX went public in April, raising $320 million by selling 16 million shares at $20 each. The company now trades alongside defense drone peers such as Kratos Defense & Security Solutions and AeroVironment, as investors seek exposure to the growing defense technology and autonomy sector.
Risks and Backlog
Despite the upbeat results, the company's funded backlog—signed and financed work not yet recognized as revenue—declined to $356.6 million at March 31 from $503.1 million at year-end. About 73.9% of that backlog is tied to U.S. government contracts. The company also cautioned that its outlook depends on the government remaining open, avoiding prolonged continuing resolutions, and maintaining current contracting and funding conditions.
For now, the market is treating this first public earnings report as a clear positive: stronger revenue, a swing to profitability, raised guidance, and another Air Force award. The longer-term challenge will be converting that backlog and program wins into consistent cash flow.
