AEVEX Corp (AVEX) is a defense technology company that delivers tactical systems and global solutions to the U.S. government and related customers. Revenue comes from fixed-price and performance-based government contracts, recognized using a cost-to-cost method over the period of performance. The company operates two reportable segments: Tactical Systems and Global Solutions. In Q1 2026, Tactical Systems generated $190.8 million in segment revenue with a 20.2% Segment Adjusted EBITDA margin, while Global Solutions generated $25.9 million in segment revenue. Total funded backlog stood at $356.6 million as of March 31, 2026, down from $503.1 million at December 31, 2025, with approximately 73.9% of that backlog attributable to the U.S. government. Customer concentration is material: the EUCOM AOR Deep Strike program drove $161.0 million of incremental Tactical Systems revenue in Q1 2026 and accounted for the majority of the $140.2 million in products cost of revenue for that period. AEVEX acquired Tribe Aerospace, LLC in 2022, expanding its product capabilities.

Revenue model

Fixed-price government contracts recognized over time using the cost-to-cost method, with revenue tied to the ratio of costs incurred to total estimated contract costs. Products revenue and services revenue are reported separately. Funded backlog, including single and multi-year awards, serves as the primary forward indicator of revenue conversion.

Products and services

Tactical Systems segment: defense products including hardware and materials-intensive programs such as the EUCOM AOR Deep Strike program. Global Solutions segment: services including labor and material-based support. Aerospace capabilities added through the 2022 acquisition of Tribe Aerospace, LLC.

Customers and end markets

Primary customer is the U.S. government, representing approximately 73.9% of total funded backlog as of March 31, 2026. End markets include defense tactical programs and global defense services. Customer concentration is high, with the EUCOM AOR Deep Strike program representing a dominant share of Q1 2026 Tactical Systems revenue.

Value-chain role

Prime or subcontractor delivering integrated defense products and services directly to the U.S. government and allied customers, with performance obligations fulfilled over multi-year contract periods.

Geographic exposure

U.S. government contracts dominate the funded backlog as of March 31, 2026. The EUCOM AOR program indicates activity in the European Command area of responsibility.

Source: SEC 10-Q, filed 2026-05-20

Industry: Aircraft