AEVEX Corp. Announces Financial Results for Third Quarter 2026
AEVEX Corp. (AVEX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Press Release For Immediate Release Exhibit 99.1 AEVEX Corp. Announces Financial Results for Third Quarter 2026 SOLANA BEACH, Calif., November 11, 2026 – AEVEX Corp. (NYSE: AVEX) (“AEVEX” or the Company) announced results today for the three months ended September 30, 2026 (“Thir
Facts are quoted from the filing text and checked against it.
How this was made
The 30-second read
Why it matters
The raised full‑year outlook and strong segment revenue growth provide a catalyst for short‑term price appreciation, though the shift to a net loss warrants monitoring.
Market read
The earnings beat and raised guidance are likely to drive AVEX stock higher, influencing related defense and aerospace equities.
What to watch
Integration risk of BlackSea acquisition and higher SG&A expenses may temper upside.
AEVEX Q3 2026 revenue rose 56.5% to $189.7 million, Adjusted EBITDA rose to $30.8 million, a GAAP net loss of $16.8 million was reported, and full-year 2026 guidance was raised
Revenue growth of 56.5% year over year, Adjusted EBITDA growth to $30.8 million with margin of 16.2%, and a raised full-year outlook are offset by a GAAP net loss of $16.8 million in the quarter, driven by a $41.7 million provision for income taxes against a prior-year provision of $40 thousand, and by a 6.5-fold rise in SG&A.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue (three months ended Sep 30, 2026)GAAP | $189.7M | – | 56.5% |
| Products revenue (three months ended Sep 30, 2026)GAAP | $148.1M | – | – |
| Services revenue (three months ended Sep 30, 2026)GAAP | $41.59M | – | – |
| Total cost of revenue (three months ended Sep 30, 2026)GAAP | $135.0M | – | – |
| Gross profit (three months ended Sep 30, 2026)GAAP | $54.68M | – | – |
| Selling, general and administrative expenses (three months ended Sep 30, 2026)GAAP | $29.31M | – | – |
| Research and development expenses (three months ended Sep 30, 2026)GAAP | $7.21M | – | – |
| Amortization of intangible assets (three months ended Sep 30, 2026)GAAP | $5.25M | – | – |
| Total operating expenses (three months ended Sep 30, 2026)GAAP | $41.77M | – | – |
| Income from operations (three months ended Sep 30, 2026)GAAP | $12.90M | – | – |
| Interest expense (three months ended Sep 30, 2026)GAAP | −$2.66M | – | – |
| Interest income (three months ended Sep 30, 2026)GAAP | $1.60M | – | – |
| Other income, net (three months ended Sep 30, 2026)GAAP | $13.11M | – | – |
| Total other income (expense), net (three months ended Sep 30, 2026)GAAP | $12.06M | – | – |
| Income before income taxes (three months ended Sep 30, 2026)GAAP | $24.96M | – | – |
| Provision for income taxes (three months ended Sep 30, 2026)GAAP | $41.72M | – | $41.7 million increase in provision for income tax (company text) |
| Net (loss) income (three months ended Sep 30, 2026)GAAP | −$16.76M | – | $26.7 million unfavorable change (company text) |
| Net (loss) margin (three months ended Sep 30, 2026)GAAP | (8.8)% | – | – |
| Net (loss) income attributable to AEVEX Corp. (three months ended Sep 30, 2026)GAAP | −$23.86M | – | – |
| Net income attributable to redeemable noncontrolling interests (three months ended Sep 30, 2026)GAAP | $7.02M | – | – |
| Basic and diluted loss per share of Class A common stock (three months ended Sep 30, 2026)GAAP | $(0.40) | – | – |
| Adjusted EBITDA (three months ended Sep 30, 2026)non-GAAP | $30.8M | – | – |
| Adjusted EBITDA margin (three months ended Sep 30, 2026)non-GAAP | 16.2% | – | – |
| Total revenue (nine months ended Sep 30, 2026)GAAP | $608.2M | – | – |
| Products revenue (nine months ended Sep 30, 2026)GAAP | $508.6M | – | – |
| Services revenue (nine months ended Sep 30, 2026)GAAP | $99.56M | – | – |
| Total cost of revenue (nine months ended Sep 30, 2026)GAAP | $449.4M | – | – |
| Gross profit (nine months ended Sep 30, 2026)GAAP | $158.8M | – | – |
| Selling, general and administrative expenses (nine months ended Sep 30, 2026)GAAP | $71.19M | – | – |
| Research and development expenses (nine months ended Sep 30, 2026)GAAP | $16.18M | – | – |
| Total operating expenses (nine months ended Sep 30, 2026)GAAP | $100.9M | – | – |
| Income (loss) from operations (nine months ended Sep 30, 2026)GAAP | $57.90M | – | – |
| Interest expense (nine months ended Sep 30, 2026)GAAP | −$13.18M | – | – |
| Provision for income taxes (nine months ended Sep 30, 2026)GAAP | $44.18M | – | – |
| Net income (loss) (nine months ended Sep 30, 2026)GAAP | $10.93M | – | – |
| Net income (loss) margin (nine months ended Sep 30, 2026)GAAP | 1.8% | – | – |
| Net (loss) income attributable to AEVEX Corp. (nine months ended Sep 30, 2026)GAAP | −$604K | – | – |
| Basic and diluted loss per share of Class A common stock (nine months ended Sep 30, 2026, period after the Organizational Transactions)GAAP | $(0.41) | – | – |
| Adjusted EBITDA (nine months ended Sep 30, 2026)non-GAAP | $95.34M | – | – |
| Adjusted EBITDA margin (nine months ended Sep 30, 2026)non-GAAP | 15.7% | – | – |
| Net cash provided by (used in) operating activities (nine months ended Sep 30, 2026)GAAP | $40.77M | – | – |
| Purchases of property, plant and equipment (nine months ended Sep 30, 2026)GAAP | −$6.19M | – | – |
| Free cash flow (nine months ended Sep 30, 2026)non-GAAP | $34.59M | – | – |
| Airborne Systems Segment Adjusted EBITDA (three months ended Sep 30, 2026)non-GAAP | $33.46M | – | 119.4% |
| Airborne Systems Segment Adjusted EBITDA margin (three months ended Sep 30, 2026)non-GAAP | 22.6% | – | – |
| Maritime Systems Segment Adjusted EBITDA (three months ended Sep 30, 2026)non-GAAP | $2.03M | – | 537.7% |
| Maritime Systems Segment Adjusted EBITDA margin (three months ended Sep 30, 2026)non-GAAP | 14.0% | – | – |
| Global Solutions Segment Adjusted EBITDA (three months ended Sep 30, 2026)non-GAAP | $1.50M | – | (66.1)% |
| Global Solutions Segment Adjusted EBITDA margin (three months ended Sep 30, 2026)non-GAAP | 5.4% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Airborne SystemsCompany states the increase is primarily due to higher revenue from UAS products and support services. | $147,788 thousand (three months ended Sep 30, 2026) | – | 67.1% |
| Maritime SystemsCompany states the increase is primarily due to the acquisition of BlackSea on September 8, 2026. Segment formed on the acquisition; prior-year figures are recast. | $14,435 thousand (three months ended Sep 30, 2026) | – | 623.2% |
| Global SolutionsCompany states the decrease is due to lower revenue primarily from aircraft modifications and testing products. | $27,474 thousand (three months ended Sep 30, 2026) | – | (10.7)% |
FY2026 (year ending December 31, 2026) outlook
- Revenue$820.0 million to $840.0 million
- NoteAdjusted EBITDA (non-GAAP): $128.0 million to $132.0 million
- NoteDepreciation and amortization: approximately $30.0 million (company estimate)
- NoteNet interest expense: approximately $13.0 million (company estimate)
- NoteCompany describes the outlook as raised; release prints the prior range as $700.0 million to $720.0 million for revenue and $105.0 million to $111.5 million for Adjusted EBITDA
- NoteAdjusted EBITDA is not reconciled to GAAP net income (loss) for the outlook because certain reconciling items cannot be estimated without unreasonable effort, per the company
- NoteEstimates are based on information as of November 11, 2026 and assume no prolonged continuing resolutions and no material change in the contracting and funding environment
Capital returns
- Nine months ended Sep 30, 2026: repurchase of Class A units $(1,048) thousand
- Nine months ended Sep 30, 2026: distributions to members $(3,000) thousand
- Nine months ended Sep 30, 2026: distributions to noncontrolling interest $(225) thousand
- Nine months ended Sep 30, 2026: purchase of Series B units $(148,809) thousand, matching proceeds from secondary offering of $148,809 thousand as printed
- Nine months ended Sep 30, 2026: proceeds from IPO, net of underwriting discounts and commissions $345,920 thousand; payments of offering costs $(12,253) thousand
What drove it
- Company states the Q3 revenue increase of $68.5 million is primarily due to $59.3 million of higher revenue in Airborne Systems and $12.4 million of higher revenue in Maritime Systems driven by the BlackSea acquisition, partially offset by $3.2 million of lower revenue in Global Solutions
- Company states the Adjusted EBITDA increase was primarily driven by an $18.2 million increase in Airborne Systems Adjusted EBITDA, from higher products revenue and lower research and development expense for UAS products and services, partially offset by higher cost of products revenue and higher SG&A
- Company states the net loss change of $26.7 million was primarily driven by a $41.7 million increase in provision for income tax and a $21.1 million increase in SG&A, partially offset by a $20.1 million increase in products gross profit, a $4.3 million increase in services gross profit, a $6.3 million increase in other income, net, and a $5.9 million decrease in interest expense
- Company states the SG&A increase reflects incentive compensation expense and new employee-related costs
- Company states the Global Solutions Adjusted EBITDA decline reflects lower gross profit from aircraft modifications and higher SG&A
- Company states the BlackSea Technologies acquisition closed on September 8, 2026 and established Maritime Systems as the third reportable segment, with Airborne Systems and Global Solutions retained
- Company states that Q3 Adjusted EBITDA includes $7,445 thousand of business acquisition costs and $3,134 thousand of noncash stock compensation as reconciling items to Adjusted EBITDA
Concerns
- GAAP net loss of $(16,761) thousand in Q3 2026 compared with net income of $9,891 thousand in Q3 2025, with GAAP provision for income taxes of $41,722 thousand versus $40 thousand
- Net loss attributable to AEVEX Corp. of $(23,858) thousand in Q3 2026 versus net income attributable of $9,889 thousand in Q3 2025
- Global Solutions revenue declined 10.7% and its Segment Adjusted EBITDA margin fell to 5.4% from 14.3%
- Maritime Systems Segment Adjusted EBITDA margin declined to 14.0% from 15.9%, per the filing, while the segment is newly acquired
- Business acquisition costs of $7,445 thousand in Q3 2026 and $9,713 thousand in the nine months are excluded from Adjusted EBITDA
- The forward-looking statements section cites the company's ability to remediate material weaknesses in internal control over financial reporting and disclosure controls and procedures
- Long-term debt, TRA liability and redeemable noncontrolling interests together form a large claim structure; total equity fell to $6,533 thousand from $203,597 thousand
What to watch
- Delivery against the raised FY2026 revenue range of $820.0 million to $840.0 million and Adjusted EBITDA range of $128.0 million to $132.0 million
- Integration of BlackSea Technologies (AEVEX Maritime Systems) and Maritime Systems segment margin, which the company's outlook and risk factors reference
- Recovery of Global Solutions revenue and Segment Adjusted EBITDA after the decline in aircraft modifications and testing products
- The GAAP tax provision of $41,722 thousand in Q3 2026 and the trajectory of GAAP net income (loss) relative to Adjusted EBITDA
- Progress on remediation of material weaknesses referenced in the forward-looking statements
- Reported free cash flow for full-year 2026, given nine-month free cash flow of $34,586 thousand
- Company's note that the forward-looking estimates assume no prolonged continuing resolutions
Balance sheet and cash flow
- Cash and cash equivalents: $78,643 thousand at Sep 30, 2026 versus $27,908 thousand at Dec 31, 2025
- Current portion of long-term debt: $4,375 thousand at Sep 30, 2026 versus $2,720 thousand at Dec 31, 2025
- Long-term debt, net of current portion: $168,122 thousand at Sep 30, 2026 versus $255,780 thousand at Dec 31, 2025
- TRA liability: $85,142 thousand at Sep 30, 2026 versus nil at Dec 31, 2025
- Goodwill: $600,144 thousand at Sep 30, 2026 versus $292,328 thousand at Dec 31, 2025
- Total assets: $1,284,969 thousand at Sep 30, 2026 versus $626,995 thousand at Dec 31, 2025
- Redeemable noncontrolling interests (mezzanine equity): $871,630 thousand at Sep 30, 2026 versus nil at Dec 31, 2025
- Total equity: $6,533 thousand at Sep 30, 2026 versus $203,597 thousand at Dec 31, 2025
- Business acquisition, net of cash acquired: $(240,313) thousand in the nine months ended Sep 30, 2026
- Equity issued in business combination: $217,763 thousand (noncash, nine months ended Sep 30, 2026)
- Proceeds from notes payable $173,120 thousand and repayment of notes payable $(260,229) thousand in the nine months ended Sep 30, 2026
- Cash paid for interest: $11,763 thousand in the nine months ended Sep 30, 2026 versus $23,025 thousand in the prior-year period
Analysis
AEVEX reported third-quarter 2026 total revenue of $189.7 million, up 56.5% from $121.2 million, with Airborne Systems revenue of $147,788 thousand (up 67.1%) accounting for most of the increase. The company attributes the Airborne increase to higher UAS products and support services revenue. Maritime Systems, formed through the BlackSea Technologies acquisition completed on September 8, 2026, contributed $14,435 thousand of revenue. Global Solutions revenue fell 10.7% to $27,474 thousand, which the company ties to aircraft modifications and testing products. Segment figures are recast for the new three-segment structure, so prior-year comparisons reflect the company's restated presentation.
Profitability was mixed. Adjusted EBITDA rose to $30.8 million from $17.8 million, with margin at 16.2% against 14.6%, and Airborne Systems Segment Adjusted EBITDA of $33,461 thousand against $15,253 thousand carried most of the gain. On a GAAP basis the company reported a net loss of $(16,761) thousand, compared with net income of $9,891 thousand a year earlier. The filing identifies a provision for income taxes of $41,722 thousand as the largest single driver of the $26.7 million unfavorable change, alongside a $21.1 million increase in SG&A that the company links to incentive compensation and new employee-related costs. Gross profit rose to $54,677 thousand from $30,322 thousand, and total operating expenses rose to $41,773 thousand from $18,800 thousand. Income from operations was $12,904 thousand against $11,522 thousand.
For the nine months, revenue reached $608,181 thousand against $275,627 thousand, and net income was $10,931 thousand against a loss of $(29,261) thousand. Nine-month Adjusted EBITDA was $95,337 thousand against $8,023 thousand. Operating cash flow was $40,773 thousand and free cash flow was $34,586 thousand, both against negative prior-year figures, although the nine-month cash flow statement also shows $(240,313) thousand of cash used for the business acquisition and substantial debt and equity financing activity. Balance sheet totals changed sharply: total assets rose to $1,284,969 thousand from $626,995 thousand, goodwill to $600,144 thousand from $292,328 thousand, and a TRA liability of $85,142 thousand and redeemable noncontrolling interests of $871,630 thousand now appear, while total equity fell to $6,533 thousand from $203,597 thousand.
The company raised its full-year 2026 outlook to revenue of $820.0 million to $840.0 million and Adjusted EBITDA of $128.0 million to $132.0 million, and estimates D&A of approximately $30.0 million and net interest expense of approximately $13.0 million. The release prints the prior ranges as $700.0 million to $720.0 million for revenue and $105.0 million to $111.5 million for Adjusted EBITDA. The guidance is explicitly based on assumptions about continuing resolutions and the contracting and funding environment, and the company says actual results may differ materially. The filing does not provide gross margin, tax rate or operating expense guidance. The prior-period outlook document itself was not supplied with this filing, so no formal comparison against the previous release is provided here.
The items deserving closest attention are the GAAP swing to a quarterly net loss driven by the tax provision, the Global Solutions decline and margin compression, the high level of acquisition-related costs excluded from Adjusted EBITDA, and the material weaknesses in internal control referenced in the forward-looking statements section.
Management, verbatim
AEVEX delivered strong third-quarter results with total revenue and Adjusted EBITDA growth, and related margin expansion
Roger Wells, Chief Executive Officer
The strength of our third quarter performance, end market demand and the addition of BlackSea gives us the confidence to raise our full-year outlook.
Roger Wells, Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin percentage for Q3 2026 and Q3 2025 is not printed and was not calculated
- Gross margin percentage for nine months ended Sep 30, 2026 and 2025 is not printed
- Prior-quarter (Q2 2026) figures are not printed in this release
- Year-over-year percentage change for Adjusted EBITDA in dollars is not printed (text states an increase only)
- Year-over-year percentage change for total cost of revenue, gross profit, SG&A, R&D and operating expense lines is not printed
- Prior-year quarterly EPS for Q3 2025 is not printed (Q3 2025 shown as a dash, pre-Organizational Transactions)
- Prior-year nine-month EPS is not printed for the comparable period (pre-Organizational Transactions)
- Q3 2026 operating cash flow and Q3 2025 free cash flow are not printed
- Operating cash flow and free cash flow for Q3 2026 alone are not printed; only nine-month figures are given
- Full-year 2026 gross margin, operating expense, and tax rate guidance are not provided
- Previous outlook document was not supplied, so vs_prior_guidance is empty; the prior ranges printed in this release are shown in guidance.other only
- Consensus estimates, analyst expectations and share price reaction are not in the document
- Adjusted EBITDA and Adjusted EBITDA margin for full-year 2026 guidance are not reconciled to GAAP per the company
- Segment Adjusted EBITDA for the nine-month period is not printed
- Conference call transcript is not included in the filing
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
AEVEX Corp., a publicly traded autonomous systems company, filed an 8‑K reporting its Q3 2026 financials and acquisition of BlackSea Technologies.
Ticker impact
AVEX announced Q3 2026 results with revenue up 56.5% YoY and raised full-year 2026 outlook.
likely upward pressure as investors price in higher revenue and EBITDA outlook
The company reported strong top‑line growth, a swing to a net loss but offset by higher adjusted EBITDA, and explicitly raised its full‑year revenue and EBITDA guidance, which typically supports a price rally.
Market effects
Positive signal for autonomous systems and defense‑related aerospace sector.
May boost investor sentiment toward U.S. technology and defense stocks.
Limited to sector; no broad macro impact.
Counterpoint
The net loss and higher tax provision could weigh on margins, suggesting caution.
Key entities
- CompanyAEVEX Corp.
Issuer of the earnings release and acquirer of BlackSea Technologies.
- CompanyBlackSea Technologies
Acquired to form the new Maritime Systems segment.
