What AEVEX (AVEX) Said on Its Q3 Earnings Call

Key Points

• AEVEX raised its 2026 outlook: revenue is now projected at $820 million to $840 million and adjusted EBITDA at $128 million to $132 million. About half of the increase reflects existing business growth and half the BlackSea acquisition.
• BlackSea added a Maritime Systems segment, which contributed $14.4 million in Q3 revenue and is expected to generate about $150 million for the full year. AEVEX also cited expanded Navy GARC work and a $41.6 million mine-countermeasure award.
• Core revenue nearly tripled from Q1 to Q3, exceeding Ukraine-related revenue for the first time since Q2 2025 as that work winds down. Funded backlog reached $444.3 million; the quarter’s $16.8 million net loss primarily reflected a one-time $37.9 million deferred tax expense tied to BlackSea.

AEVEX NYSE: AVEX raised its full-year revenue and adjusted earnings outlook after reporting a 56.5% increase in third-quarter revenue, as demand for autonomous systems broadened beyond its Ukraine-related work and the company integrated its acquisition of BlackSea Technologies.

The defense technology company reported third-quarter revenue of $189.7 million and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of $30.8 million. That compared with adjusted EBITDA of $17.8 million a year earlier. The adjusted EBITDA margin increased to 16.2% from 14.6%.

AEVEX now expects 2026 revenue of $820 million to $840 million, up from its prior forecast of $700 million to $720 million. It raised its adjusted EBITDA outlook to $128 million to $132 million from $105 million to $111.5 million.

Chief Executive Officer Roger Wells said roughly half of the revenue guidance increase came from AEVEX’s existing business and half from the addition of BlackSea. He said the higher forecast did not depend on pulling revenue previously expected in 2027 into the current year.

BlackSea Adds Maritime Business

AEVEX completed its acquisition of BlackSea in September, creating a third reporting segment called Maritime Systems. The segment contributed $14.4 million in third-quarter revenue, including $13 million from BlackSea. Wells said Maritime Systems is expected to generate approximately $150 million in revenue for the full year and is performing in line with the acquisition plan.

Wells said the company has met its internal integration milestones and reported no disruption to customers. AEVEX has moved its existing Mako family of small uncrewed surface vessels into Maritime Systems and plans to use the acquired Baltimore production footprint rather than build new production lines in Tampa.

BlackSea completed a 325-vessel production contract for the Navy’s GARC platform in 2025. Wells said the Navy added approximately $135 million to the contract in 2026 for continuing work, bringing its total value to approximately $350 million. The work includes upgrades to the Navy’s Lynx configuration, mission packages, operations and support.

Wells said Maritime Systems expects to generate more than $100 million in GARC-related revenue in 2026 without delivering additional hulls. AEVEX also announced a $41.6 million award for mine countermeasure mission packages for Lynx and other vessels.

Core Growth Offsets Ukraine Roll-Off

AEVEX defines its core business as total revenue excluding Phoenix Ghost and EUCOM Deep Strike. Wells said core revenue nearly tripled from $49 million in the first quarter to $137 million in the third, when it exceeded Ukraine-related revenue for the first time since the second quarter of 2025.

The company expects approximately $36.3 million of Ukraine-related revenue in the fourth quarter, with that work winding down thereafter. Its revised forecast implies full-year core revenue of $440 million to $460 million, Wells said. He added that all 2026 bookings through the third quarter were associated with the core business.

Airborne Systems generated $147.8 million of third-quarter revenue, including $52.5 million from EUCOM Deep Strike. Global Solutions revenue was $27.5 million, down year over year primarily because of lower aircraft modification and testing product revenue.

AEVEX reported a net loss of $16.8 million for the quarter, compared with net income of $9.9 million a year earlier. Chief Financial Officer Todd Booth said the loss was primarily attributable to a $37.9 million one-time deferred tax expense associated with the BlackSea acquisition and related restructuring. Excluding that expense, net income would have been $21.1 million, Booth said.

Backlog and 2027 Outlook

Funded backlog ended the quarter at $444.3 million, including $172.3 million from Maritime Systems. AEVEX also reported approximately $1.1 billion in awarded but unfunded contract ceiling, representing potential future task orders for which funding has not yet been obligated. The company expects approximately $410 million of that amount to convert into revenue by the end of 2027.

AEVEX recently received a single-award, indefinite-delivery, indefinite-quantity contract with a ceiling of nearly $400 million for a U.S. customer. Wells said the company expects orders under the contract later this year, although award processes could delay the timing. He said the anticipated work should carry margins in line with its core Airborne Systems business.

The company’s opportunity pipeline rose to approximately $16.6 billion from $10.5 billion in the prior quarter, including $4.9 billion from Maritime Systems. Wells said the multiyear pipeline includes both funded and unfunded programs.

AEVEX did not provide formal 2027 guidance. Wells said a continuing resolution could affect the timing of orders but that the company did not see significant revenue or margin risk from it, because most near-term work involves existing contracts and systems already in production.

Booth said AEVEX ended the quarter with $78.6 million in cash and $172.5 million in total debt. Its $200 million revolving credit facility was undrawn.

About AEVEX (NYSE:AVEX)

AEVEX Corporation NYSE: AVEX provides defense and intelligence customers with unmanned aircraft systems and related mission solutions. Its work includes designing, building and integrating aircraft, sensors and other mission equipment for operational use. The company also offers engineering, training and operational support services. These capabilities help customers plan and conduct missions that rely on aerial surveillance, reconnaissance and other specialized aviation functions. AEVEX serves government and defense customers, including U.S. and allied users.

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