AVEX: 1Q26 revenues ahead of preliminary results, 2026 guidance ahead of consensus, focus on bookings

Research evidence excerpt

AVEX: 1Q26 revenues ahead of preliminary results, 2026 guidance ahead of consensus, focus on bookings

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Ken Herbert (Analyst)

Kevin Liu (Senior Associate)

Stephen Strackhouse (Vice President)

Sanika Merchant (Associate)

May 20, 2026

Aevex Corp.

1Q26 revenues ahead of preliminary results, 2026 guidance ahead of consensus, focus on

bookings

NYSE: AVEX | USD 26.33 | Outperform | Price Target USD 31.00

Sentiment: Positive

AEVEX (AVEX) reported stronger than expected 1Q26 results. AVEX reported 1Q26 revenues of $217M, up significantly from

$53M 1Q25 and up 38% sequentially. Adj. EBITDA of $36.4M (16.8% margin) was up from a loss of ($13M) in 1Q25, but the 16.8%

margins were down (100) bps sequentially from 4Q25. The 1Q26 results came in ahead of the preliminary 1Q26 revenue range of

$200-208M, adj. EBITDA coming in at the upper end of the range of $33.5-36.4M, and net income of $21M within the range of

$19-22.5M. The 1Q26 FCF was a use of ($12M), better than consensus and RBCe ($17M).

Funded backlog ended 1Q26 at $357M, representing a 0.3x book-to-bill. Funded backlog decreased $147M sequentially as AVEX

entered 2026 with a funded backlog of $503M, although we believe the softer 1Q26 bookings was signaled by management ahead

of today's print. We believe bookings and contract timing will be a major focus for investors going forward, with the 1Q26 backlog

burn reflecting the ramp and revenues recognized from the EUCOM AOR Deep Strike program.

The initial 2026 guidance brackets consensus EBITDA, ahead on revenues. The company is guiding to 2026 revenues of

$600-620M (up 41% yoy at midpoint), ahead of current consensus $585M. The adj. EBITDA guide of $88-94.5M compares to