Applied Aerospace & Defense is targeting a NYSE IPO under the ticker “AADX,” offering 32.5 million shares at a range of $18.00 to $21.00, implying an estimated deal size of approximately $633.8 million at the midpoint and an implied market capitalization of roughly $3.3 billion. The offering is being led by Morgan Stanley, Jefferies, BofA Securities, RBC Capital Markets, Guggenheim Securities, Baird, Stifel, and Wolfe | Nomura Alliance. The company plans to use the majority of IPO proceeds to repay outstanding debt under its revolving credit facility and term loan borrowings.
Applied Aerospace & Defense positions itself as a vertically integrated provider of advanced engineering and manufacturing solutions for the space and defense industries, supplying mission-critical systems and subsystems used in extreme operating environments across Space and Launch Systems, Defense Aviation and Airborne Systems, and C5ISR and Precision Strike Systems. The company manufactures highly engineered components tied to reusable launch systems, missile platforms, control surfaces, propulsion technologies, and advanced sensing infrastructure. Management emphasizes that the company’s capabilities are deeply embedded within both legacy aerospace platforms and next-generation defense programs, with approximately 87% of fiscal 2025 revenue tied to sole- or single-source relationships.
The company was assembled through a series of acquisitions backed by Greenbriar Equity Group, which will continue to control the company following the IPO with approximately 81% ownership after the offering. Applied Aerospace traces its roots through legacy aerospace and defense manufacturers including Applied Aerospace Structures Corporation, originally founded in 1954, and PCX Aerostructures, whose operating history dates back to 1900. The current platform was formed through the merger of AA&D Holdings and Rotor Topco in November 2025, combining Applied Aerospace Structures and PCX under one corporate structure. The company has since expanded through acquisitions including Innovative Composite Engineering, NeXolve, Consolidated Boring Inc., Vestigo Aerospace, and Ultracor, broadening both its manufacturing footprint and technical capabilities.
Applied Aerospace operates 11 manufacturing facilities across the United States totaling approximately 1.5 million square feet of production space. The company highlights specialized capabilities including flow forming, composite tube manufacturing, RF-transparent composite manufacturing, propulsion tank production, deep hole boring, and large-scale clean room infrastructure. Management believes years of underinvestment and consolidation within the U.S. defense industrial base have created a structural shortage of technically differentiated mid-tier suppliers capable of supporting the accelerating production needs of next-generation aerospace and defense platforms.
The company’s largest exposure currently comes from Defense Aviation and Airborne Systems, which represented 66% of historical 2025 revenue, while Space and Launch Systems represented 23% and C5ISR and Precision Strike Systems represented 11%. Applied Aerospace argues that growing geopolitical tensions, increased defense spending, autonomous warfare initiatives, missile rearmament efforts, and rapid commercialization of space are collectively driving long-duration demand cycles across all three end markets. Management specifically points to programs tied to reusable launch systems, hypersonic platforms, missile defense architectures, and advanced drone and autonomous aircraft initiatives as major future growth drivers.
Financially, Applied Aerospace generated $498.8 million in revenue during fiscal 2025, representing 24.8% year-over-year growth from $399.8 million in fiscal 2024. Adjusted EBITDA increased to $117.9 million from $84.0 million the prior year, while Adjusted EBITDA margin expanded to 23.6% from 21.0%. Despite strong top-line growth and improving margins, the company reported a net loss of $17.0 million in 2025, largely driven by its substantial debt burden and associated interest expense. On a pro forma basis including the acquisition of Consolidated Boring Inc., 2025 revenue would have been approximately $604.3 million with Pro Forma Adjusted EBITDA of $141.9 million.
For the quarter ended March 31, 2026, revenue increased 21.0% year-over-year to $134.4 million compared to $111.0 million in the prior-year period. However, net loss widened to $15.1 million from $7.3 million, while Adjusted EBITDA margin declined modestly to 19.8% from 22.8%. Pro forma quarterly revenue following the CBI acquisition reached approximately $152.0 million.
Applied Aerospace believes its long-standing customer relationships, vertically integrated manufacturing model, and specialized engineering expertise position it to capitalize on what management describes as a multi-year modernization cycle across both aerospace and defense markets. The company currently reports approximately $1.06 billion in contract backlog and an estimated weighted pipeline of roughly $3.8 billion as of March 31, 2026, reflecting management’s expectation for continued demand growth across missile systems, defense aviation, and space infrastructure programs.
The IPO arrives amid increasing investor interest in defense technology, military modernization, and space infrastructure companies as geopolitical tensions and rising global defense budgets continue to drive capital toward the sector. Applied Aerospace’s positioning across both legacy defense platforms and emerging next-generation technologies may attract institutional investors looking for exposure to scalable aerospace manufacturing infrastructure tied to long-duration government and commercial spending cycles. However, investors will likely continue to monitor the company’s sizable debt load, acquisition integration strategy, and ability to convert strong demand trends into sustained profitability following the offering.
Look for AADX to price the night of June 2nd to trade on June 3rd.