Aevex Corp. (NYSE:AVEX) saw its stock rise sharply in after-hours trading amid news of a new U.S. Air Force contract and significantly improved first-quarter financial results.
The Air Force award, valued at $15.6 million, is intended to support advanced unmanned aircraft mission capabilities and modular airborne system-integration work. The contract specifically leverages Aevex’s long range one-way attack platform, which is configured for extended-range operations and high payloads. The company said performance under the contract will be carried out from its existing U.S. engineering and production footprint.
For the quarter ended March 31, 2026, Aevex reported total revenue of $216.7 million, up 307% from $53.3 million in the year-ago quarter. The company moved to a net income position of $21.0 million, compared with a net loss of $27.3 million in the first quarter of 2025. Adjusted EBITDA for the quarter was $36.4 million, versus negative $13.4 million in the prior-year period.
The surge in revenue was driven primarily by the Tactical Systems segment, which recorded $190.8 million in sales compared with $29.5 million a year earlier - a 547.8% increase. The Tactical Systems uplift reflected $161.0 million of higher revenues tied to unmanned aircraft systems products. Segment adjusted EBITDA improved to $38.5 million from negative $9.9 million in the comparable period.
The Global Solutions segment generated $25.9 million in revenue for the quarter, an increase of 8.8% from $23.8 million in the first quarter of 2025.
Looking ahead, Aevex provided full-year 2026 guidance of total revenue between $600.0 million and $620.0 million, and adjusted EBITDA in a range of $88.0 million to $94.5 million.
On the balance of contracted work, funded backlog stood at $356.6 million as of March 31, 2026, down from $503.1 million at year-end 2025. Management expects to convert approximately 93% of funded backlog into revenue during the remainder of 2026.
Key points
- Stock reaction: Shares rose over 11% in after-hours trading following the contract announcement and quarterly results - relevant to equity markets and investors tracking defense-linked stocks.
- Segment drivers: Tactical Systems led the revenue expansion, driven by unmanned aircraft systems; Global Solutions delivered modest growth - implications for the aerospace and defense manufacturing sector.
- Guidance and backlog: Company issued full-year revenue and adjusted EBITDA guidance and reported a funded backlog decline, with an expected 93% conversion rate - pertinent to revenue recognition and order-book visibility in the defense sector.
Risks and uncertainties
- Backlog contraction: Funded backlog decreased from $503.1 million at year-end 2025 to $356.6 million as of March 31, 2026, which could affect near-term revenue cadence if conversion differs from expectations - relevant to investors and credit analysts.
- Concentration of growth: A substantial portion of the revenue increase came from the Tactical Systems segment and unmanned aircraft products, exposing results to demand or execution variability in that product line - relevant to defense procurement and manufacturing risk.
- Execution reliance on existing footprint: The Air Force work and other program performance are slated to be carried out from Aevex’s current U.S. engineering and production footprint, which ties program delivery to the company's existing operational capacity.
The company did not provide additional commentary in the materials disclosed with the results. Investors and market participants will likely monitor backlog conversion and execution under the new Air Force award as drivers of near-term performance and the company’s ability to meet its 2026 guidance.