Inquire about the product types driving the pipeline growth from $8.1 billion to $10.5 billion and how this will translate into orders and backlog by year-end.

Significant interest is seen in Group II and Group III long-range precision strike and one-way attack systems (Disruptor and Raker product lines), driven by current conflicts. Pipeline growth stems from product differentiation, clearer government demands, and increased production capacity. The company is well-positioned to execute on this pipeline with existing and new products. “So right now, we're seeing a significant amount of interest in our Group II and Group III, in particular, the Group III long-range precision strike and one-way attack systems. This is the Disruptor and the Raker product line within our portfolio.”

Clarify the margin assumptions for the full year, given the higher revenue outlook, and if there's conservatism in the operating leverage.

The midpoint guidance implies approximately 15.3% adjusted EBITDA margin for the full year, with the second half expected to be around 15%. This is consistent with the first half, despite lower revenue in the second half. While sales mix and operational efficiency could lead to higher margins, the current forecast is at this level. “So right now, our -- if you take our midpoint guidance, we have $710 million of revenue for the year, which translates to approximately $291 million in second half of the year. And we're -- at the midpoint on the adjusted EBITDA, we're at 15.3% approximately.”

Understand the 95% backlog coverage for the second half of FY26, how much book-to-ship activity is assumed, and the amount of backlog for FY27 shipments.

Over 95% of FY26 revenue (midpoint) is funded backlog, with the remainder from incremental funding on existing contracts. The company anticipates a full-year book-to-bill near 1.0x, leading to an inflection point into FY27 with expanding funded backlog. Strong demand and active contract negotiations are expected to drive bookings in the near term. “Yes. So as you've mentioned, over 95% of our fiscal year '26 revenue at the midpoint of our new guidance is funded backlog, and the remaining 5% or so is going to come through long-established incremental funding on existing contracts.”

AVEX

AEVEX (AVEX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 12, 2026

Source: earnings call transcript

Executive summary

AEVEX Q2 FY26 — Strong Growth, BlackSea Acquisition, and Raised Outlook

AEVEX delivered a strong second quarter, marked by robust revenue growth and profitability, leading to a raised full-year outlook. The company announced the strategic acquisition of BlackSea Technologies, significantly expanding its multi-domain autonomous systems capabilities across air, surface, and subsea. This move positions AEVEX to capitalize on increasing demand for unmanned systems in a dynamic geopolitical environment, leveraging its core autonomy stack and production scale.

Highlights

Revenue grew approximately 100% year-over-year to $201.8 million in Q2 FY26.
Net income increased to $6.7 million in Q2 FY26 from a net loss of $11.8 million in Q2 FY25.
Full-year 2026 revenue outlook raised to $700 million to $720 million (midpoint $710 million).
Proposed acquisition of BlackSea Technologies for up to $650 million, expected to be accretive to EPS.
Tactical Systems segment revenue grew 142% year-over-year to $174.2 million.

Concerns

Global Solutions segment revenue decreased 5% year-over-year to $27.6 million due to timing of an aircraft sale.
Elongated award cycles in some cases due to Middle East conflict, acquisition force changes, and operational reprioritization.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$700 million to $720 million high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$105 million to $111.5 million high materiality	FY26	High
BlackSea Technologies FY26 Revenue	Approximately $150 million medium materiality	FY26	High
BlackSea Technologies FY27 Revenue Growth	At least in line with its addressable markets medium materiality	FY27	Medium
Full-year 2026 Depreciation and Amortization	Roughly $21.7 million low materiality	FY26	High
Full-year 2026 Net Interest Expense	Roughly $11.5 million low materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Tactical Systems Driven largely by the execution of the EUCOM Deep Strike program. Higher revenue led to operational efficiencies and strong segment adjusted EBITDA margins.	$174.2 million	142%	—	17% adjusted EBITDA margin
Global Solutions Driven largely by the timing of an aircraft sale in Q2 2025 that did not repeat this year, offset by growth across the rest of the portfolio. This led to favorable sales mix and segment adjusted EBITDA expansion of roughly 700 basis points.	$27.6 million	-5%	—	14.2% adjusted EBITDA margin

Orderbook & backlog

BlackSea Technologies Funded Backlog $110 million Q2 FY26

Tied to programs associated with production, sustainment, and operations of GARC and Chaser, as well as contested logistics vessels contracts like SPDS.

BlackSea Technologies Unfunded Backlog $250 million Q2 FY26

Tied to programs associated with production, sustainment, and operations of GARC and Chaser, as well as contested logistics vessels contracts like SPDS.

AEVEX Backlog Coverage for FY26 Revenue 95% Q2 FY26

95% of the midpoint of the FY26 revenue outlook is currently in backlog, with the remainder expected through renewals of long-standing contracts in the Global Solutions segment.

Product announcements

Product	Type	Timeline
GARC (Global Autonomous Reconnaissance Craft)	milestone	—
Chaser	launch	—
Comet	milestone	—
Raptor	milestone	—
NightTrain	milestone	—
Revenge	milestone	—
SPDS (Seabased Petroleum Distribution System)	milestone	—

Deals & partnerships

BlackSea Technologies Acquisition of a leading developer of autonomous and unmanned surface and subsea vessels for the U.S. Navy, SOCOM, and other customers. Up to $650 million

The acquisition will unite two battle-tested air, surface, and subsea portfolios, expanding AEVEX's ability to support customers across domains and providing new access to maritime pathways. BlackSea will operate as a third business unit within AEVEX, with CEO Bob Pudney staying on to lead the business.

Capital programs

Tampa Production Facilities Expansion and Consolidation underway

Benefit:More than double capacity

Decision made to both expand and consolidate Tampa production facilities. This investment is expected to provide greater operational flexibility and more than double capacity over the next year to meet robust demand.

Risks & headwinds

Elongated award cycles Current

Not quantified

Mitigation:Not explicitly stated, but company emphasizes ability to operate in a short-cycle environment and strong demand signals.

Continuing resolution for next fiscal year Next fiscal year (FY27)

Not material impact on FY26 financial results

Mitigation:Management does not expect a material impact on FY26 financial results.

What to watch in Q3 FY26

BlackSea Technologies Integration and Financial Guidance

Next quarter (after close)

Current Acquisition announced, expected to close in September 2026.

Target Updated financial guidance including BlackSea's contribution.

Why it matters

The acquisition is a significant strategic move, and its financial impact and integration progress will be key to the combined entity's performance.

We will provide updated financial guidance when appropriate after close.

Find out whether AVEX delivers this. Inve re-checks your case every morning.

Q&A highlights

Update on the EUCOM Deep Strike program's revenue recognition, expected duration, and its contribution to future periods.

The EUCOM Deep Strike program remains a major contributor for FY26, with the vast majority of revenue and systems delivered this fiscal year. The first half was largely driven by this program, and the company is transitioning to other programs in the second half. While the exact percentage isn't disclosed, its contribution to total revenue will decrease in Q3 and significantly in Q4, with a small portion extending into FY27.

“So EUCOM Deep Strike continues to be a major program for us in fiscal year '26. As we've talked about on previous calls, we will likely roll off the vast majority of revenue on this program and deliver the vast majority of systems this fiscal year.”

asked by Peter Arment · answered by Charles Wells

3 min read 6 chapters

Detailed narrative

Strategic Rationale for BlackSea Technologies Acquisition

AEVEX announced the proposed acquisition of BlackSea Technologies for up to $650 million, aiming to create one of the largest multi-domain unmanned systems providers. The acquisition is expected to deliver significant production capacity, access to new maritime markets, and the ability to offer a broader portfolio of multi-domain unmanned capabilities, all underpinned by AEVEX's CompassX autonomy stack.

BlackSea's USV platforms are widely produced and operationally deployed, complementing AEVEX's leadership in unmanned aerial systems.

BlackSea Technologies Capabilities and Track Record

BlackSea has delivered over 350 USVs since inception, accumulating more than 25,000 operational hours, including nearly 500 hours in Operation Epic Fury. The company is expected to generate approximately $150 million in revenue in FY26 with an adjusted EBITDA margin in line with AEVEX.

Its flagship USV, GARC, carries a 1,000-pound payload, has a 640-mile range, and operates for up to 10 days. The successor, Chaser, offers improved payload, range, and lower unit cost, designed for rapid global deployment. BlackSea also brings significant funded backlog of $110 million and unfunded backlog of $250 million.

BlackSea's Infrastructure and Operational Model

BlackSea operates across five U.S. locations, with its Baltimore waterfront facility offering 57,000 sq ft for R&D and 47,000 sq ft for production, capable of producing 40 small USVs per month. This capacity provides significant headroom to convert existing backlog without immediate incremental investment.

The company employs a hybrid business model, producing and operating assets, which provides predictable long-term revenue and valuable operational insights. BlackSea's platforms are built on a modular open systems architecture, aligning with Department of War mandates for rapid capability insertion and interoperability.

Q2 FY26 Financial Performance and Outlook

AEVEX reported approximately 100% year-over-year revenue growth to $201.8 million in Q2 FY26, primarily driven by the Tactical Systems business and the EUCOM Deep Strike program. Net income improved to $6.7 million from a net loss in the prior year.

Adjusted EBITDA margins improved significantly year-over-year due to higher revenue, production efficiencies, and lower operating expenses as a percentage of sales. The company raised its full-year 2026 revenue outlook to $700 million to $720 million and adjusted EBITDA to $105 million to $111.5 million, excluding the BlackSea acquisition.

Industry Trends and Demand Signals

The geopolitical environment, including conflicts in Ukraine and the Middle East, continues to drive higher global defense spending and increased demand for autonomous systems. AEVEX is seeing a growing set of use cases for these systems, with the President's FY27 budget projecting materially higher spending for autonomous systems.

Demand signals for unmanned systems remain robust, though award cycles have elongated in some cases. The company is well-positioned with its scale, innovative technology, and battle-proven systems to capitalize on future growth.

Backlog and Pipeline Growth

AEVEX's trailing 12-month book-to-bill ratio was 1.08x. Backlog coverage for FY26 revenue stood at 71% this quarter, down from 82% in Q1, reflecting increased short-cycle order activity and rapid conversion to revenue. The pipeline of opportunities grew from $8.1 billion at the end of 2025 to $10.5 billion today, driven by government budget clarity, product development, and increased production capacity.

The company anticipates a full-year book-to-bill near 1.0x.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.