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Applied Aerospace & Defense
(NYSE:AADX)
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Rating:48Neutral
Price Target:
$12.50
▼(-6.02% Downside)
Action:Reiterated
Date:09/09/26
The score is held down primarily by weak financial performance (cash burn and prior leverage concerns) and bearish technicals (below key moving averages with negative MACD). These are partially offset by a constructive earnings-call outlook, including strong backlog, clear full-year guidance, and expectations for positive free cash flow in the second half.
Positive Factors
Backlog and Revenue Growth
Strong quarterly growth combined with a record backlog provides meaningful forward revenue visibility across multiple end markets. This supports continued program execution and gives the company a durable base for expansion over the next several quarters.
Negative Factors
Cash Burn and Low Cash Balance
Heavy near-term cash usage and a low quarter-end cash balance leave limited liquidity relative to ongoing operating needs and net debt. Even with an expected second-half improvement, working-capital demands could constrain flexibility during program ramps.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Revenue Growth
Strong quarterly growth combined with a record backlog provides meaningful forward revenue visibility across multiple end markets. This supports continued program execution and gives the company a durable base for expansion over the next several quarters.
Read all positive factors
Applied Aerospace & Defense (AADX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.18B
Dividend YieldN/A
Average Volume (3M)1.97M
Price to Earnings (P/E)―
Beta (1Y)3.26
Revenue Growth35.16%
EPS Growth-409.21%
CountryUS
Employees1,542
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares Outstanding172,393,520
10 Day Avg. Volume2,409,095
30 Day Avg. Volume1,967,897
Financial Highlights & Ratios
PEG Ratio-1.46
Price to Book (P/B)20.35
Price to Sales (P/S)5.37
P/FCF Ratio-69.99
Enterprise Value/Market Cap1.99
Enterprise Value/Revenue13.59
Enterprise Value/Gross Profit58.87
Enterprise Value/Ebitda-30.75
Forecast
1Y Price Target
$25.00Price Target Upside87.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Applied Aerospace & Defense Business Overview & Revenue Model
Company Description
Applied Aerospace & Defense, Inc. engages in the provision of integrated manufacturing solutions. It focuses on serving the following markets: Space and Launch Systems, Defense Aviation and Airborne Systems, and C5ISR and Precision Strike Systems....
Applied Aerospace & Defense Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 319.30M | 604.34M | 399.79M |
| Gross Profit | 73.73M | 164.52M | 98.08M |
| EBITDA | -141.16M | 99.29M | 68.09M |
| Net Income | -232.77M | -49.02M | -34.77M |
Balance Sheet | |||
| Total Assets | 1.50B | 999.30M | 949.79M |
| Cash, Cash Equivalents and Short-Term Investments | 18.11M | 15.47M | 27.47M |
| Total Debt | 431.54M | 669.07M | 610.02M |
| Total Liabilities | 672.34M | 839.84M | 783.95M |
| Stockholders Equity | 827.88M | 159.46M | 165.84M |
Cash Flow | |||
| Free Cash Flow | -103.73M | -46.37M | -10.23M |
| Operating Cash Flow | -82.09M | -28.94M | 4.65M |
| Investing Cash Flow | -327.45M | -27.78M | -49.15M |
| Financing Cash Flow | 412.17M | 44.73M | 37.66M |
Applied Aerospace & Defense Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $8.09B | 250.55 | 1.14% | ― | 25.50% | 86.96% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $44.24B | -266.96 | -7.56% | ― | 52.53% | 38.89% | |
54 Neutral | $3.90B | -9.76 | -32.55% | 7.52% | 179.17% | -13.42% | |
53 Neutral | $2.72B | -7.45 | -20.75% | ― | 63.10% | 55.06% | |
48 Neutral | $2.18B | -8.26 | -58.42% | ― | 35.16% | -409.21% | |
48 Neutral | $3.37B | -15.66 | 29.79% | ― | 116.89% | 64.21% |
* General Sector Average
AADX
Applied Aerospace & Defense
12.63
-6.38
-33.56%
KTOS
Kratos Defense
43.07
-57.18
-57.04%
RKLB
Rocket Lab USA
73.92
15.42
26.36%
RDW
Redwire
10.88
-0.34
-3.03%
LUNR
Intuitive Machines
14.71
2.73
22.79%
FLY
Firefly Aerospace, Inc.
23.32
-5.77
-19.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.