ARXS: Early years of an A&D compounder; Initiate Outperform

研报英文原文证据摘录

ARXS: Early years of an A&D compounder; Initiate Outperform

Aerospace & Defense

Defense - Market Overweight

ARXIS, INC. (ARXS) May 11, 2026

ARXS: Early years of an A&D compounder; Initiate Rating:

Outperform Outperform

Price:

$35.10

The Wolfe Byte Price Target:

We initiate Outperform on ARXS against the backdrop of solid growth tailwinds $43

% Upside:across their core end markets coupled with a proven M&A track record that is sure 22.5%

to be a source of upside to our initial HSD sales/DD EBITDA 5-yr CAGR, making

View ARXS Model

for a potent earnings revision story. View Comp Table

Company Information

Arxis looks to follow a well-defined success path for A&D compounders 52-Week Range $35 - $39

Arxis has a portfolio of technology enablers whose value to the larger product in Market Cap. (MM) $14,405

which they sit provide outsized opportunity for returns (~40% EBITDA margins) Enterprise Value (MM) $15,412 Shares Out. (MM) 404.3

given the proprietary nature of their solutions. From self-lubricating ball bearings to Avg. Value Traded (MM) $14.37

mission-critical packaging, connectors, seals, and electronic components, the $1.8B in Net Debt (M)/ EBITDA 1.5x

SI% of Float 0.0%

'26E sales across 46 companies within Arxis cover a wide swath of the market while Price/ FCF 35.8x

not having overly heavy concentration to any single program or mission area. EV/ EBITDA 22.5x

Price to Earnings 57x

Broad end market tailwinds and solid M&A track record build confidence

Price PerformanceArxis key end markets of defense (47%), commercial aero OE (16%), commercial

YTD LTM

aero aftermarket (7%) and industrial tech (30%) all seem to be trending in the right S&P 500 1% 25%

direction with the first 3 all flirting at or above multi-year DD growth. In terms of M&A, A&D Index 8% 31%