$AADX

Applied Aerospace & Defense, Inc.

CIK:0002118195|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 167,318	$ 113,499	$ 301,669	$ 224,523
Cost of goods sold	130,132	81,472	230,904	161,612
Gross profit	37,186	32,027	70,765	62,911
Selling, general, and administrative expenses	123,315	11,579	151,617	23,946
Intangible asset amortization expense	10,103	6,538	18,213	13,076
Operating (loss) income	(96,232)	13,910	(99,065)	25,889
Interest expense, net	26,249	16,934	44,020	33,654
Loss before income taxes	(122,481)	(3,024)	(143,085)	(7,765)
Income tax expense	31,490	1,651	26,018	4,223
Net loss and comprehensive loss	(153,971)	(4,675)	(169,103)	(11,988)
Net loss and comprehensive loss	$ (153,971)	$ (4,675)	$ (169,103)	$ (11,988)
Net loss per share – basic (in dollars per share)	$ (1.04)	$ (0.05)	$ (1.20)	$ (0.14)
Net loss per share – diluted (in dollars per share)	$ (1.04)	$ (0.05)	$ (1.20)	$ (0.14)
Weighted-average shares outstanding – basic (in shares)	148,176,486	88,550,670	140,398,304	88,334,005
Weighted-average shares outstanding – diluted (in shares)	148,176,486	88,550,670	140,398,304	88,334,005

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (169,103)	$ (11,988)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	27,236	19,387
Share-based compensation expense	110,842	1,604
Non-cash interest expense of debt discount and issuance costs	8,007	1,381
Deferred income taxes	(12,402)	(1,275)
Net changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts receivable, net	12,656	5,588
Contract assets	(44,237)	(19,739)
Inventories	7,834	(6,951)
Prepaid expenses and other current assets	3,075	(1,263)
Accounts payable	(2,835)	9,070
Contract liabilities	(938)	(7,897)
Accrued expenses and other current liabilities	(23,316)	(5,634)
Operating lease right-of-use assets and liabilities	1,090	1,051
Net cash used in operating activities	(82,091)	(16,666)
Cash flows from investing activities:
Purchases of property and equipment	(21,639)	(4,013)
Payment for acquisitions, net of cash acquired	(305,810)	(10,351)
Net cash used in investing activities	(327,449)	(14,364)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of discount	326,935	0
Repayments of long-term debt	(567,646)	(2,865)
Proceeds from revolving line of credit	56,100	15,000
Repayments of revolving line of credit	(56,100)	0
Payments on finance lease liabilities	(874)	(394)
Payments on equipment financing obligations	(579)	(575)
Capital contributions received	18,700	0
Net proceeds from issuance of common stock in initial public offering	635,637	0
Net cash provided by financing activities	412,173	11,166
Net increase (decrease) in cash and cash equivalents	2,633	(19,864)
Cash and cash equivalents, beginning of period	15,475	27,466
Cash and cash equivalents, end of period	18,108	7,602
Supplemental disclosures of cash flow information:
Cash paid for interest	40,838	$ 38,200
Contract Assets (Current)	$ 197,668

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 18,108	$ 15,475
Accounts receivable, net	69,590	71,386
Contract assets	197,668	140,817
Inventories	60,963	57,375
Prepaid expenses and other current assets	8,735	6,521
Total current assets	355,064	291,574
Property, plant and equipment, net	167,037	119,777
Goodwill	581,427	342,491
Intangible assets, net	353,299	199,672
Other assets	43,392	45,787
Total assets	1,500,219	999,301
Current liabilities:
Accounts payable	45,772	37,894
Contract liabilities	25,287	21,550
Accrued expenses and other current liabilities	63,299	26,342
Current portion of long-term debt	5,318	7,068
Current portion of finance lease liabilities	1,825	1,628
Total current liabilities	141,501	94,482
Long-term debt, net	395,173	626,975
Finance lease liabilities, net of current portion	29,224	30,405
Deferred income taxes	55,804	35,184
Other non-current liabilities	50,636	52,791
Total liabilities	672,338	839,837
Shareholders' equity:
Common shares, $0.01 par value; 200 shares authorized, 158 and 149 shares issued and outstanding at June 30, 2026 and December 31, 2025	1,724	1,297
Additional paid-in capital	1,058,943	221,850
Accumulated deficit	(232,140)	(63,037)
Accumulated other comprehensive loss	(646)	(646)
Total shareholders' equity	827,881	159,464
Total liabilities and shareholders' equity	$ 1,500,219	$ 999,301