Applied Aerospace & Defense builds precision parts for rockets, military aircraft, and battlefield electronics—think of it as the machine shop for America's space and defense programs.
Revenue comes from government and prime-contractor manufacturing orders, hitting USD 0.60B in 2025. Gross margins run around 23%, but the company is unprofitable, losing USD 0.05B in 2025 and USD 0.15B in the latest quarter.
Defense work demands certifications and long qualification cycles that Lockheed Martin and Northrop Grumman can't easily replicate, but the moat is eroding as the company's own losses and negative margins suggest pricing power is slipping.
Key events, in time order
First post-IPO report: revenue beat but surprise loss; stock fell ~10%; backlog rise in focus
IPO priced near top of range, opened +3.75%, market cap $3.54B
None yet
None yet
The user presents a discounted cash flow (DCF) model for $AADX, questioning market assumptions about terminal value, discount rates, and growth expectations.
Main discussion
No comments yet.
Facts and opinions separated · All items sourced · Not investment advice
