Organization and Nature of the Business

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Nature of the Business

Organization and Nature of the Business

Applied Aerospace & Defense, Inc. is a Delaware corporation which specializes in providing advanced design, engineering, and vertically integrated manufacturing solutions for leading and next-generation space and defense technology companies. The Company operates various manufacturing locations throughout the United States. As of June 30, 2026, approximately 80% of the Company’s outstanding common shares are beneficially owned by AA&D Holdings, LP (“AA&D Holdings”), and therefore the Company is a “controlled company” as defined under the corporate governance standards of the New York Stock Exchange.

Stock Split and Initial Public Offering

On June 2, 2026 the Company’s registration statement on Form S-1 for its initial public offering (the “IPO”) was declared effective. Following the effectiveness of the registration statement, the Company effected an 872,901.03-for-1 stock split of its common stock and increased the number of its authorized shares of common stock to 1,000,000,000 and its authorized shares of preferred stock to 50,000,000. All share and per share information throughout this Quarterly Report on Form 10-Q has been retroactively adjusted to reflect the stock split. The shares of common stock have a par value of $0.01 per share. Accordingly, an amount equal to the par value of the increased shares resulting from the stock split was reclassified from Additional Paid-in Capital to Common Stock.

On June 4, 2026, the Company completed the IPO and issued and sold 32.5 million shares of its common stock at a public offering price of $20.00 per share. Following the IPO, the underwriters exercised an option to purchase 1.65 million additional shares of the Company’s common stock. The aggregate gross proceeds from the IPO and related additional shares purchased by the underwriters were $683,000. After deducting underwriting discounts, commissions, and other offering costs, the Company received net proceeds of $635,637, with such proceeds principally being used to repay outstanding borrowings under the 2022 Credit Agreement (as defined below). Refer to Note 10, Long-Term Debt, for additional disclosure regarding our long-term debt.

NeXolve Acquisition

On March 4, 2025, the Company completed its acquisition of NeXolve Holdings, LLC (the “NeXolve Acquisition” and “NeXolve”, respectively), bringing deployable space technology and advanced polymer expertise to the Company. Refer to Note 4, Business Combinations, for additional information about the Company’s acquisition of NeXolve.

Vestigo Acquisition

On January 16, 2026, the Company completed its acquisition of Vestigo Aerospace, Inc. (the "Vestigo Acquisition” and “Vestigo”, respectively), a business that designs and develops passive de-orbit systems, including the Spinnaker product line of dragsail technology, and related assemblies for reliable end-of-mission space vehicle and other low-earth orbit satellite disposal. Refer to Note 4, Business Combinations, for additional information about the Company's acquisition of Vestigo.

Consolidated Boring Acquisition

On March 2, 2026, the Company completed its acquisition of Consolidated Boring Inc. (the "CBI Acquisition" and “CBI”, respectively). CBI is a vertically integrated two-site advanced manufacturing platform that specializes

in complex assemblies and highly-engineered components for a broad range of precision strike systems. Refer to Note 4, Business Combinations, for additional information about the Company's acquisition of CBI.

Ultracor Acquisition

On March 2, 2026, the Company completed its acquisition of Ultracor, Inc. (the “Ultracor Acquisition”), which was formerly known as Rainwater Holdings, Inc. Ultracor is a supplier of highly specialized and IP-enabled honeycomb core materials used in defense aviation and space platforms, including next generation tiltrotor aircraft and navigational satellites. Refer to Note 4, Business Combinations, for additional information about the Company’s acquisition of Ultracor.

Unless specifically noted otherwise, as used throughout these unaudited condensed consolidated financial statements, “the Company” refers to the business, operations and financial results of the Company and its wholly owned subsidiaries. For additional information regarding the presentation of the accompanying financial statements, including as a result of the NeXolve Acquisition, the Vestigo Acquisition, the CBI Acquisition, and the Ultracor Acquisition, refer to Note 2, Summary of Significant Accounting Policies - Basis of Presentation and Use of Estimates.