Arxis (ARXS) Q3 2026 Earnings Call: Guidance Raised on Ramp Capture
Source Tradingkey
Key Takeaways
- Arxis reported fiscal Q3 2026 revenue of $564 million, up 36% year over year, including 29% organic growth and a 7% contribution from acquisitions.
- Adjusted EBITDA rose 67% to $256 million, while adjusted EBITDA margin expanded 840 basis points to 45.4%, supported by higher volumes, high-single-digit pricing and productivity initiatives.
- Free cash flow increased 117% to $150 million. Net leverage declined to 1.6x from 1.8x at the end of Q2.
- Management raised FY 2026 guidance to revenue of $2.05 billion-$2.07 billion and adjusted EBITDA of $855 million-$865 million.
- For FY 2027, the company expects revenue of $2.4 billion-$2.5 billion, organic growth of 10%-15% and adjusted EBITDA of $1.01 billion-$1.06 billion.
- Management attributed above-algorithm growth to “ramp capture,” as production increased across platforms including Patriot and other missile programs, F-35 electronic warfare, the 737 and industrial applications.
Core Financial Data
| Metric | Fiscal Q3 2026 | Change / Commentary |
|---|---|---|
| Revenue | $564 million | Up 36% year over year |
| Organic revenue growth | 29% | Driven by new business, pricing and higher production on existing platforms |
| Acquisition contribution | 7% | Contribution to reported revenue growth |
| Adjusted EBITDA | $256 million | Up 67% year over year |
| Adjusted EBITDA margin | 45.4% | Up 840 basis points year over year |
| Free cash flow | $150 million | Up 117% year over year |
| Net leverage | 1.6x | Down from 1.8x at the end of Q2 |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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