AEVEX revenue doubles to $201.8M as BlackSea deal looms

AEVEX reported second-quarter revenue of $201.8 million, up about 100 percent from a year earlier, and agreed to acquire unmanned maritime systems maker BlackSea Technologies for up to $650 million.

"AEVEX delivered another very strong quarter, our second consecutive beat and raise, driven by sustained demand and strong execution across the business," Executive Chairman Brian Raduenz said.

Net income swung to $6.7 million from an $11.8 million loss in the prior-year quarter. Tactical Systems revenue jumped 142 percent to $174.2 million, driven by the Deep Strike program, with segment adjusted EBITDA margin at 17 percent of sales. Companywide adjusted EBITDA margin expanded 1,036 basis points to 13.9 percent. Global Solutions revenue slipped 5 percent to $27.6 million as an aircraft sale recorded a year earlier did not repeat.

Shares fell 4.62 percent in premarket trading to $21.70 from a $22.75 close, as investors weighed timing-related revenue dynamics and integration risk tied to the pending acquisition. The deal, expected to close in September, adds unmanned surface and subsea vessels to AEVEX's aerial portfolio.

BlackSea acquisition terms

AEVEX will pay about $250 million in cash and $350 million in stock priced at $27.50 per share, or roughly 12.7 million shares, plus a $50 million earn-out tied to performance targets through fiscal 2027. BlackSea is expected to generate about $150 million in revenue in fiscal 2026, with adjusted EBITDA margins in line with AEVEX, and brings more than $110 million in funded backlog and $250 million in unfunded backlog.

BlackSea has delivered more than 350 unmanned surface vessels and accumulated more than 25,000 operational hours, including nearly 500 hours supporting Operation Epic Fury. Its Baltimore production facility can build about 40 small unmanned surface vessels per month, with a workforce of roughly 275 employees.

Raised guidance and pipeline

AEVEX raised its full-year 2026 revenue outlook to $700 million to $720 million, from $600 million to $620 million, and adjusted EBITDA guidance to $105 million to $111.5 million, from $88 million to $94.5 million. The updated outlook excludes the BlackSea acquisition. Management said about 95 percent of the midpoint of revenue guidance is already in backlog.

The opportunity pipeline grew to about $10.5 billion from $8.1 billion at the end of 2025, with roughly $2 billion in potential contract value across launched effects, one-way attack, long-range precision strike and CENTCOM support programs. Unit volumes rose 114 percent year over year, and the trailing 12-month book-to-bill stood at 1.08.

The company ended the quarter with $215.2 million in cash and $99.1 million in long-term debt, with access to an undrawn $75 million delayed-draw term loan and a $200 million revolving credit facility.

The guidance raise signals management expects unmanned systems demand to keep accelerating as the Department of War shifts toward shorter-cycle procurement. Investors will watch the September closing of the BlackSea deal and updated combined guidance for 2027, with analyst price targets ranging from $31 to $45 per share.

This article is for informational purposes only and does not constitute investment advice.