Abstract
Applied Aerospace & Defense will release fiscal results on November 11, 2026 Pre-MKt; this preview summarizes consensus projections for revenue, margins, net income, and adjusted EPS for the upcoming quarter and reviews the prior quarter’s print alongside segment dynamics since January 1, 2026.
Market Forecast
For the current quarter, the company’s internal forecast set shows revenue estimated at 170.38 million US dollars, EBIT at 27.11 million US dollars, and adjusted EPS at 0.10, with year-over-year growth rates not disclosed; margin guidance items are not provided, so consensus implies stabilization from the prior quarter’s mix. The main business is expected to center on Defense Aviation and Airborne Systems, C5ISR and Precision Strike Systems, and Space and Launch Systems, with steady program execution and funding visibility. Among these, Defense Aviation and Airborne Systems appears the most promising near term, with last quarter’s revenue base of 78.93 million US dollars and signs of continued order conversion.
Last Quarter Review
In the previous quarter, revenue was 167.32 million US dollars, the gross profit margin was 22.22%, GAAP net profit attributable to shareholders was -154.00 million US dollars, the net profit margin was -92.02%, and adjusted EPS was -1.04, with year-over-year comparisons not available. Program timing drove a top-line beat versus internal estimates, while profitability was pressured by one-off charges and cost catch-ups. By segment, Defense Aviation and Airborne Systems delivered 78.93 million US dollars, C5ISR and Precision Strike Systems delivered 49.59 million US dollars, and Space and Launch Systems delivered 38.80 million US dollars, with mix skewing toward airborne platforms.
Current Quarter Outlook
Main business momentum
Program cadence remains the organizing theme across the portfolio this quarter. Management’s forecast points to a modest sequential revenue uptick from 167.32 million US dollars to 170.38 million US dollars, which would rely on steady milestones in airborne mission equipment and sustainment. With last quarter’s gross margin at 22.22%, investors will watch for incremental improvement if cost normalization and lower non-recurring charges take hold; any change in milestone mix could swing margins. The large negative net margin last quarter reflected special items; absent those, the EBIT estimate of 27.11 million US dollars suggests a return to operating profitability, contingent on on-time acceptances and supply continuity.
Most promising segment
Defense Aviation and Airborne Systems stands out as the near-term growth fulcrum given its 78.93 million US dollars contribution last quarter and the relative resilience of fleet sustainment and upgrades. The segment’s backlog conversion is typically less binary than new-start space programs, potentially supporting quarter-to-quarter stability. If engineering services and retrofit packages ramp as anticipated, incremental revenue should carry better drop-through than development-heavy programs, which could help the consolidated margin trajectory.
Key stock price drivers this quarter
Earnings quality will likely dominate the market’s reaction: investors will parse how much of the EBIT recovery is driven by normalized program execution versus temporary cost relief. Cash generation and working capital unwinds from milestone collections could act as a secondary valuation catalyst, especially given last quarter’s charges. Finally, order momentum and funded backlog color the medium-term narrative; evidence of awards in C5ISR or avionics refresh cycles would support visibility, whereas any supply-chain disruption or schedule slips could reintroduce volatility.
Analyst Opinions
Across recent institutional commentary, views skew neutral to cautiously constructive, with a slight majority expecting stabilization in revenue around 170.38 million US dollars and a rebound to positive operating income as one-time headwinds fade. Commentators emphasize the importance of margin normalization following the reported -92.02% net margin last quarter; several note that the 27.11 million US dollars EBIT estimate implies meaningful improvement if execution holds. The prevailing view is that Defense Aviation and Airborne Systems should lead near-term performance, while C5ISR updates and any space program milestones will influence sentiment around the pace of recovery.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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