AEVEX Corp. Reports Strong Second-Quarter 2026 Growth as Revenue Nearly Doubles
AEVEX Corp. (NYSE: AVEX), a provider of autonomous systems and mission-focused technologies, reported strong financial results for the second quarter ended June 30, 2026, highlighted by a near doubling of revenue, a return to profitability, and substantial growth in adjusted EBITDA.
The company’s latest results reflect continued demand for autonomous systems and related capabilities from government and defense customers. AEVEX also announced plans to acquire BlackSea Technologies, a move intended to expand its multi-domain autonomous systems portfolio and strengthen its position in a rapidly developing market.
For the second quarter, AEVEX generated total revenue of $201.8 million, representing a 99.5% increase from $101.1 million in the same period of 2025. The company reported net income of $6.7 million, compared with a net loss of $11.8 million in the prior-year quarter.
Adjusted EBITDA rose sharply to $28.1 million from $3.6 million a year earlier, while the adjusted EBITDA margin expanded to 13.9% from 3.6%.
The company said its performance was supported by strong execution, higher revenue from its Tactical Systems segment, improved profitability, and continued customer demand for autonomous systems that can be deployed in operational environments.
Revenue Growth Approaches 100%
AEVEX’s second-quarter revenue increased by $100.7 million year over year to $201.8 million.
The overwhelming majority of the increase came from the company’s Tactical Systems segment, where revenue rose by $102.1 million. The growth was primarily attributable to higher revenue from unmanned aerial systems, or UAS, products and associated support services.
The EUCOM AOR Deep Strike program alone contributed approximately $72.2 million to the quarter’s revenue increase.
The strong performance from Tactical Systems more than offset a $1.8 million decline in revenue from the Global Solutions segment, which experienced lower activity related primarily to aircraft modifications and testing products and services.
The significant increase in revenue demonstrates the company’s ability to scale production and delivery as customer demand for autonomous capabilities increases.
AEVEX management said the quarter reflected the scale and momentum developing across its autonomous systems portfolio, with customers continuing to prioritize suppliers capable of delivering proven technologies at scale and in real-world operating environments.
AEVEX Returns to Profitability
The company’s bottom line improved significantly during the second quarter.
AEVEX reported net income of $6.7 million, or a net income margin of 3.3%, compared with a net loss of $11.8 million and a negative margin of 11.7% in the second quarter of 2025.
The $18.5 million improvement in net income was driven primarily by stronger gross profit and lower research and development expenses.
Products gross profit increased by $26.1 million, while services gross profit increased by $3.1 million. Research and development expenses declined by $1.6 million, primarily because of lower spending associated with UAS products and services development activities.
These improvements were partially offset by a $13.1 million increase in selling, general and administrative expenses.
The increase in SG&A included $5.8 million in additional professional fees related to the company’s IPO process, secondary offering, and business acquisition activities. Incentive compensation expense increased by $3.0 million, while new employee-related costs rose by $2.1 million. Noncash stock compensation expense also increased by $1.6 million.
Despite those additional expenses, the company’s higher revenue and improved gross profit more than compensated for the increase in operating costs.
Adjusted EBITDA Surges
AEVEX’s adjusted EBITDA increased dramatically during the quarter.
Adjusted EBITDA reached $28.1 million, compared with $3.6 million in the second quarter of 2025. The company’s adjusted EBITDA margin increased to 13.9%, compared with 3.6% in the prior-year period.
The $24.5 million improvement was primarily driven by the Tactical Systems segment.
Tactical Systems adjusted EBITDA increased by $26.6 million to $29.6 million, compared with $2.9 million a year earlier. The improvement was largely attributable to higher product revenue and lower research and development expenses related to UAS products and services.
The increase was partially offset by higher product costs and increased SG&A expenses, including incentive compensation and costs associated with new employees.
Global Solutions also contributed to the overall improvement. Adjusted EBITDA for the segment increased by $1.8 million to $3.9 million from $2.2 million in the prior-year quarter.
The improvement in Global Solutions profitability was driven by lower selling, general and administrative expenses, reduced research and development spending, and lower product costs.
Tactical Systems Drives Performance
Tactical Systems was the primary growth engine for AEVEX during the second quarter.
Segment revenue reached $174.2 million, compared with $72.1 million in the second quarter of 2025. That represents an increase of $102.1 million, or 141.6%.
The growth was primarily driven by higher revenue from UAS products and support services.
Segment adjusted EBITDA increased even more sharply, rising 905.9% to $29.6 million from $2.9 million.
The segment’s adjusted EBITDA margin reached 17.0%, compared with 4.1% in the year-ago quarter.
The results demonstrate the operating leverage associated with higher production and program activity. As major UAS programs scale, the company is able to generate substantially higher revenue while improving profitability.
Management said demand for battle-proven autonomous systems remains robust, particularly as customers increasingly seek technologies that can support missions in operational environments.
AEVEX’s CompassX-enabled autonomy ecosystem and expanding production footprint are intended to help the company respond to this demand.
Global Solutions Remains Profitable
While Global Solutions experienced a modest decline in revenue, the segment delivered improved profitability during the quarter.
Revenue decreased 5.0% to $27.6 million from $29.0 million in the second quarter of 2025. The decline was primarily attributable to lower revenue from aircraft modifications and testing products.
Despite the lower revenue, adjusted EBITDA increased 81.3% to $3.9 million from $2.2 million.
The segment’s adjusted EBITDA margin increased to 14.2%, compared with 7.4% in the prior-year period.
The improvement was driven by lower SG&A expenses, reduced research and development costs, and lower product costs.
The contrasting performance of AEVEX’s two business segments illustrates the company’s diversified operating model. Tactical Systems is benefiting from strong UAS demand and program growth, while Global Solutions is improving profitability through tighter expense management and operational efficiencies.
Major Contract Awards Support Future Growth
AEVEX secured several significant awards during the second quarter, supporting its long-term revenue pipeline.
Among the major awards was an $18.5 million contract for the delivery of UAS products and engineering services to the U.S. Air Force.
The company also received mission-support contracts from the U.S. Air Force with an aggregate contract value of $15.6 million.
Another important award was a $15.2 million option-year contract to continue providing real-time aerial intelligence for California’s FIRIS Program.
In addition, AEVEX secured a $50 million contract for advanced unmanned mission capabilities for the U.S. Air Force.
These awards highlight continued demand for the company’s autonomous systems, intelligence capabilities, engineering services, and mission-support solutions.
Funded Backlog Reflects Program Timing
AEVEX reported funded backlog of $259.8 million as of June 30, 2026, compared with $503.1 million at the end of 2025.
The company said the $243.3 million decrease during the first six months of 2026 was primarily attributable to revenue recognized from the EUCOM AOR Deep Strike program.
The decline was also influenced by an increase in shorter-cycle customer orders.
Although funded backlog was lower than at year-end, AEVEX expects to convert approximately 95.1% of the $259.8 million backlog into revenue over the following 12 months.
The company considers funded backlog an important indicator of future business activity. However, it also notes that contracts can be terminated, amended, or canceled, potentially reducing future revenue.
The timing of large program awards can also create significant fluctuations in backlog from one reporting period to another.
BlackSea Technologies Acquisition Expands Portfolio
AEVEX also announced a definitive agreement to acquire BlackSea Technologies.
The proposed transaction is designed to strengthen AEVEX’s multi-domain autonomous systems portfolio and expand its capabilities in a rapidly growing market.
Management described the acquisition as part of a disciplined capital deployment strategy intended to build one of the industry’s leading pure-play autonomous systems providers.
The company expects the transaction to enhance its position as demand for autonomous technologies continues to expand across multiple operational domains.
Importantly, AEVEX’s current full-year financial outlook does not include contributions from the proposed BlackSea Technologies acquisition or other future acquisitions.
Management Raises Full-Year 2026 Outlook
Following its strong first-half performance, AEVEX raised its outlook for the full fiscal year.
The company now expects 2026 revenue between $700 million and $720 million.
Adjusted EBITDA is expected to range from $105 million to $111.5 million.
The outlook excludes potential contributions from the BlackSea Technologies transaction and other future acquisitions.
AEVEX’s forecast reflects management’s expectations for continued program ramp-up, sustained customer demand, and execution across its business.
For the year ending December 31, 2026, the company estimates depreciation and amortization of approximately $21.7 million and net interest expense of approximately $11.5 million.
Management cautioned that the outlook remains subject to various risks and uncertainties, including government funding conditions, continuing resolutions, the contracting environment, and broader market developments.
Management Sees Strong Momentum Entering Second Half
AEVEX CEO Roger Wells said the second-quarter results demonstrate the scale, momentum, and customer demand across the company’s autonomous systems portfolio.
According to Wells, the company is experiencing near triple-digit revenue growth while simultaneously expanding margins and executing against customer programs.
He emphasized that customers continue to prioritize providers capable of delivering battle-proven autonomous systems at scale and in operational environments.
Wells also pointed to the company’s CompassX-enabled autonomy ecosystem and expanding production footprint as important components of its ability to support customers.
The CEO said the proposed BlackSea Technologies acquisition is expected to strengthen AEVEX’s competitive position while reflecting the company’s approach to disciplined capital deployment.
With key programs ramping, a growing pipeline, and continued momentum through the first half of 2026, management expressed confidence in the company’s ability to deliver field-relevant autonomous systems supporting customer missions.
CFO Todd Booth similarly highlighted strong execution, backlog conversion, and sustained demand.
He said the second-quarter results reflected balanced performance across Tactical Systems and Global Solutions while maintaining a disciplined approach to capital deployment.
AEVEX’s second-quarter results come as demand for autonomous systems continues to increase across defense and government applications.
The company’s performance demonstrates the importance of scalable production, mission-ready technologies, and long-term customer relationships in a market increasingly focused on autonomous capabilities.
Tactical Systems remains the central driver of AEVEX’s growth, with UAS products and support services generating significant revenue increases during the quarter. Meanwhile, Global Solutions continues to contribute through aircraft modifications, testing, mission support, and related capabilities.
The proposed BlackSea Technologies acquisition could further broaden the company’s portfolio and strengthen its position across multiple autonomous technology domains.
With revenue nearly doubling year over year, adjusted EBITDA expanding substantially, the company returning to profitability, and its full-year outlook increasing, AEVEX enters the second half of 2026 with considerable momentum.
The company’s ability to execute on major programs, convert backlog into revenue, maintain margins, and successfully integrate strategic acquisitions will be key factors in determining whether it can meet its updated full-year targets.
For now, the second-quarter results provide evidence of strong operating momentum. AEVEX is combining rising customer demand, expanding autonomous systems production, disciplined cost management, and strategic portfolio expansion as it seeks to build a larger role in the rapidly evolving autonomous defense and mission technology market.
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