AEVEX Q2 Earnings Call Highlights

AEVEX reported strong second-quarter results, with revenue doubling year over year to $201.8 million and net income improving to $6.7 million from a prior-year loss. The company raised 2026 guidance to $700 million–$720 million in revenue and $105 million–$111.5 million in adjusted EBITDA. AEVEX agreed to acquire BlackSea Technologies for up to $650 million, adding unmanned surface and subsea vessels to its aerial-systems portfolio. The deal includes $250 million in cash, approximately $350 million in stock and a $50 million earn-out, with closing expected in September 2026. Demand and growth prospects remain robust: the opportunity pipeline expanded to approximately $10.5 billion, tactical-systems revenue surged 142% to $174.2 million, and production capacity is being expanded to support continued orders.

AEVEX reported second-quarter revenue of $201.8 million, up approximately 100% from the prior-year period, and raised its full-year outlook as demand for unmanned systems remained strong. The company also announced a definitive agreement to acquire BlackSea Technologies, a developer of unmanned surface and subsea vessels, in a transaction valued at up to $650 million. Executive Chairman Brian Raduenz said the company delivered its second consecutive “beat and raise,” citing sustained demand, production scaling and execution across its autonomous systems operations. He added that the Department of War recently identified AEVEX as one of a select group of defense technology primes accelerating development and production of systems for real-world missions.

The proposed BlackSea acquisition would add unmanned surface vessel and undersea capabilities to AEVEX’s existing unmanned aerial systems portfolio. BlackSea serves customers including the U.S. Navy, U.S. Special Operations Command and the intelligence community, according to management. The consideration includes approximately $250 million in cash at closing, about $350 million in AEVEX common stock priced at $27.50 per share, and a $50 million earn-out contingent on BlackSea achieving certain performance targets through fiscal 2027. The stock component would result in the issuance of approximately 12.7 million shares to the sellers. Chief Financial Officer Todd Booth said BlackSea is expected to generate roughly $150 million in fiscal 2026 revenue, with adjusted EBITDA margins approximately in line with AEVEX’s. The transaction is expected to be accretive to earnings per share in the near term before non-cash purchase accounting amortization, Booth said. The companies expect the deal to close in September 2026, subject to the expiration of the Hart-Scott-Rodino waiting period and customary closing conditions. Following the close, BlackSea will operate as AEVEX’s third business unit, with BlackSea CEO Bob Pugkney expected to continue leading the business. CEO Roger Wells said BlackSea has delivered more than 350 unmanned surface vessels since inception and has accumulated more than 25,000 operational hours, including nearly 500 hours supporting Operation Epic Fury. He said BlackSea had more than $110 million in funded backlog and over $250 million in unfunded backlog tied to its GARC and Chaser small unmanned surface vessels, as well as contested-logistics platforms including the Sea-Based Petroleum Distribution System. BlackSea operates across five U.S. locations, including a waterfront manufacturing and development footprint in Baltimore. Wells said its production facility can produce approximately 40 small unmanned surface vessels per month.

AEVEX’s tactical systems segment generated $174.2 million in second...