BLOOMFIELD, Conn., May 27, 2026 /PRNewswire/ -- Arxis, Inc. $(ARXS)$ (the "Company" or "Arxis"), a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical engineered components, today reported financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Highlights (all comparisons against the first quarter of 2025, unless otherwise noted):

   -- Revenue of $459 million, up 21% 
 
   -- Net income of $53 million, compared to $(4) million 
 
   -- Net income margin of 11.6%, compared to (1.1)% 
 
   -- Adjusted EBITDA1 of $175 million, up 31% 
 
   -- Adjusted EBITDA margin1 improved by 290 bps to 38.2% 

Initiating Full-Year 2026 Guidance (all comparisons against the full-year 2025, unless otherwise noted):

   -- Revenue range of $1,860 to $1,880 million, representing 18% growth at the 
      midpoint 
 
   -- Adjusted EBITDA1 range of $720 to $730 million, representing 27% growth 
      at the midpoint 
 
   -- Adjusted EBITDA margin1 of approximately 38.8% at the midpoint, an 
      increase of 290 bps 

"Following the successful completion of our IPO in April, we are entering our next phase as a public company with strong momentum across our Electronic and Mechanical Components segments," said Kevin Perhamus, Arxis' President and Chief Executive Officer. "Proceeds from the IPO will support our growth objectives, specifically relating to strategic acquisitions. Our proprietary Arxis EDGE business system continues to support commercial execution, identify cross-sell opportunities, and accelerate integration across acquired businesses, contributing to continued growth and increased margin expansion across both segments."

"Arxis delivered record first quarter performance, with revenue increasing 21% year-over-year, 17% organically; net income increasing to $53 million with net income margin of 11.6%; and Adjusted EBITDA(1) growing 31%, driving 290 basis points of expansion to achieve 38.2% Adjusted EBITDA margin(1) ," continued Perhamus. "Results were supported by strong demand across our key end markets, disciplined operational execution, productivity initiatives, and continued cost management. This performance underscores the strength and scalability of the Arxis EDGE business system."

"We believe the outlook across our end markets remains favorable. In Defense & Space, we continue to see strong demand supported by increasing U.S. and allied spending priorities across mission-critical platforms and technologies where our portfolio is well positioned. In Commercial Aerospace, favorable long-term demand fundamentals and robust production backlogs continue to support long-term growth. In Industrial Technology, demand remains supported by continued investment in automation and electrification trends. We are in the early stages of a multi-year investment cycle from our customers, which positions Arxis for continued growth."

 
(1)  Additional detail on non-GAAP financial measures, including 
     reconciliations, is provided in the appendix. 
 

First Quarter 2026 Unaudited Condensed Combined Consolidated Results

 
                                                 Three Months Ended March 31 
                                               ------------------------------- 
(Dollars in millions, except per share 
amounts)                                         2026       2025      Change 
---------------------------------------------  ---------  ---------  --------- 
Revenue                                          $459       $380       21 % 
 
Net income (loss)                                 $53       $(4)        NM 
 
Net income margin                               11.6 %     (1.1) %      NM 
 
Adjusted EBITDA(1)                               $175       $134       31 % 
 
Adjusted EBITDA margin(1)                       38.2 %     35.3 %     290 bps 
 
Net cash provided by operating activities         $36        $21       76 % 
 
Free cash flow(1)                                 $25        $12       107 % 
---------------------------------------------  ---------  ---------  --------- 
 
 
NM = not meaningful due to the small prior-year comparison base. 
 

Revenue of $459 million increased 21% year-over-year, including 17% organic growth, with growth in both the Electronic and Mechanical Components segments. Growth was driven by continued strength across key end markets, led by Defense & Space and supported by ongoing momentum in Commercial Aerospace and Industrial Technology, with new business wins also contributing.

Net income of $53 million increased $57 million year-over-year, with net income margin of 11.6% compared to (1.1)% in the same quarter of the prior year.

Adjusted EBITDA(1) was $175 million, an increase of 31% year-over-year, with an Adjusted EBITDA margin(1) improvement of 290 basis points to 38.2%. Adjusted EBITDA margin(1) expansion was driven by higher volumes, favorable pricing, and disciplined cost management.

Capital Structure Updates

Arxis successfully completed its initial public offering on April 17, 2026. Proceeds from the IPO will support continued investment in the Company's growth objectives, primarily strategic acquisitions.

The Company began trading on NASDAQ under the ticker symbol "ARXS" and raised approximately $1,221 million net of underwriting discounts and fees. Proceeds were used to repay approximately $946 million of Term Loan B debt with the remaining proceeds retained for general corporate purposes, including acquisitions.

Acquisition Updates

On January 5, 2026, Arxis completed the acquisition of Micro-Tronics, a designer and manufacturer of highly engineered rubber-to-metal-bonded seals and diaphragm seal assemblies used in mission-critical aerospace and defense applications.

Full Year 2026 Guidance

 
                                  Full Year 2026 Guidance 
                            ----------------------------------- 
                                                      Change at 
(Dollars in millions)           2026(3)        2025    Midpoint 
--------------------------  ----------------  ------  --------- 
Revenue                     $1,860 to $1,880  $1,591    18 % 
 
Adjusted EBITDA(2)            $720 to $730     $571     27 % 
 
Adjusted EBITDA margin(2)        38.8%       35.9 %   290 bps 
 
 
 
(2)  Arxis has not reconciled its full year 2026 guidance related to Adjusted 
     EBITDA and Adjusted EBITDA margin to its most directly comparable forward 
     looking GAAP financial measure because such information is not available, 
     and management cannot reliably predict all of the necessary components of 
     such GAAP measure without unreasonable effort or expense. 
(3)  Includes Micro-Tronics acquisition. 
 

Conference Call and Webcast Information

Arxis will host an investor conference call to discuss its first quarter results and full-year 2026 guidance at 8:00 a.m. ET on Thursday, May 28, 2026. A live webcast of the call, along with related presentation materials, will be available on the News & Events section of the Company's website at https://ir.arxis.com. A replay of the webcast will be available for 30 days following the call.

About Arxis

Arxis is a leading designer and manufacturer of proprietary, engineered components that deliver cutting-edge performance in extreme environments. Our companies are trusted innovators serving the most demanding industries, including Defense and Space, Commercial Aerospace, and Industrial Technology. Our team of over 500 engineers works hand-in-hand with our customers' engineering teams to develop custom engineered components that address their most complex technical challenges and that perform under the most challenging conditions. Arxis is a portfolio company of Arcline Investment Management. For more information, visit www.arxis.com.

Non-GAAP Financial Measures

This press release includes certain "non-GAAP financial measures," which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. We use these non-GAAP financial measures to evaluate our business operations.

The non-GAAP financial measures presented in this press release are supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition and operating results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures provide investors greater transparency to the information used by management for its operational decision-making and allow investors to see our results "through the eyes of management." We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance. When read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for financial, operational, and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry.

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