BeefSchnitzerlin
Nov 12, 4:51 PM
$AADX AADX's Guidance Cut Overshadows Q3 Results, RBC Says
Applied Aerospace & Defense lowered its 2026 guidance largely due to timing issues and higher costs, though not a lack of demand, overshadowing the Q3 beat, RBC Capital Markets said in a note Wednesday.
The company said it now expects full-year 2026 total revenue of between
$660 million and
$670 million and non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization of between
$137 million and
$142 million.
The analysts said the lowered outlook was largely driven by delays in rotorcraft work related to Apache approval and supply chain constraints affecting forgings and castings.
"We view this as a timing issue, not a demand issue, given the work is fully funded and sole-source," the analysts said.
Looking ahead to 2027, management said about 75% of expected revenue is already backed by firm, funded orders, representing a potential revenue base of about
$800 million, the analysts added.
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