ARXS

EX-99.1

2 arxs-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Arxis Reports Second Quarter 2026 Results; Raises Full-Year 2026 Guidance

BLOOMFIELD, Conn., July 29, 2026 – Arxis, Inc. (NASDAQ: 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 second quarter ended June 30, 2026.

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

· Revenue of $501 million, up 25%

· Net loss of $(5) million, compared to $(29) million; net loss margin of -1.0%, compared to -7.3%

· Diluted loss per share of $(0.01)

· Adjusted EBITDA(1) of $211 million, up 38%; Adjusted EBITDA margin(1) improved by 390 bps to 42.2%

· Adjusted Net Income(1) of $113 million, up 726%

· Adjusted Diluted Earnings Per Share(1) of $0.28

· Net cash provided by operating activities of $138 million, up 188%; Free Cash Flow(1) of $127 million, up 261%

Raising Full-Year 2026 Guidance (all comparisons against prior guidance midpoint, unless otherwise noted):

· Revenue range of $1,960 to $1,980 million, representing a 5% increase

· Adjusted EBITDA(1) range of $790 to $800 million, representing a 10% increase

· Adjusted EBITDA margin(1) of approximately 40.4%, an increase of 160 bps

“We continued to execute our disciplined, repeatable acquisition strategy during the quarter with the acquisition of MagCanica and the announced acquisition of Omnetics. Today, we also completed the acquisition of Blue Line Engineering, further expanding our portfolio of highly engineered, mission-critical businesses and strengthening our precision sensing capabilities,” said Kevin Perhamus, President and Chief Executive Officer of Arxis.

“Operationally, revenue increased 25% year-over-year, including 21% organic growth, reflecting broad-based demand across our end markets, new business wins, favorable pricing realization, and continued momentum across both of our segments. Adjusted EBITDA(1) increased 38% year-over-year to $211 million, while Adjusted EBITDA margin(1) expanded 390 basis points to 42.2%. Margin expansion reflected the benefits of volume growth, disciplined pricing execution, ongoing productivity initiatives, and the operating leverage of our business model.”

“Our focus continues to be supporting our customers, investing in new business opportunities, expanding our content on existing and next-generation platforms, integrating acquired businesses, and executing our long-term value creation strategy. Given our strong first-half performance and improved visibility into the second half of the year, supported by secured purchase orders, completed acquisitions, and continued strength in underlying demand, we are raising our full-year guidance.”

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

1

Second Quarter 2026 Unaudited Condensed Consolidated Results

Three Months Ended June 30,

(Dollars in millions, except per share amounts)

2026

2025

Change

Revenue

$

501

$

400

25

%

Net loss

$

(5

)

$

(29

)

NM

Net loss margin

(1.0

)%

(7.3

)%

NM

Diluted loss per share

$

(0.01

)

N/A

N/A

Adjusted EBITDA(1)

$

211

$

154

38

%

Adjusted EBITDA margin(1)

42.2

%

38.4

%

390 bps

Adjusted Net Income(1)

$

113

$

14

726

%

Adjusted Diluted Earnings Per Share(1)

$

0.28

N/A

N/A

Net cash provided by operating activities

$

138

$

48

188

%

Free Cash Flow(1)

$

127

$

35

261

%

NM = not meaningful due to the small prior-year comparison base.

Revenue of $501 million increased 25% year-over-year, including 21% organic growth, reflecting broad-based strength across all of our key end markets. Both the Electronic Components and Mechanical Components segments delivered growth during the quarter, driven by strong demand in Defense & Space and continued favorable trends in Commercial Aerospace and Industrial Technology.

Net loss of ($5) million improved by $24 million year-over-year, with net loss margin of -1.0% compared to -7.3% in the prior-year period. The year-over-year improvement reflected stronger operating performance, while net income was offset by share-based compensation expense associated with the Company's initial public offering.

Adjusted EBITDA(1) increased 38% year-over-year to $211 million, while Adjusted EBITDA margin(1) expanded 390 basis points to 42.2%. The margin expansion was driven by strong operating leverage on higher volumes, favorable pricing realization, and continued execution of productivity and cost management initiatives.

Recent Acquisition Activity

As previously announced, Arxis completed the acquisition of MagCanica, LLC ("MagCanica") on June 1, 2026. MagCanica is a designer and manufacturer of non-contact, high-precision torque sensors that operate under extreme conditions.

Separately, on June 2, 2026, Arxis entered into a definitive a

EX-99.1

2 arxs-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Arxis Reports Record First Quarter 2026 Results; Initiates Full-Year 2026 Guidance

BLOOMFIELD, Conn., May 27, 2026 – Arxis, Inc. (NASDAQ: 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 EBITDA1 growing 31%, driving 290 basis points of expansion to achieve 38.2% Adjusted EBITDA margin1,” 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.

1

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 EBITDA1

$175

$134

31%

Adjusted EBITDA margin1

38.2%

35.3%

290 bps

Net cash provided by operating activities

$36

$21

76%

Free cash flow1

$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 EBITDA1 was $175 million, an increase of 31% year-over-year, with an Adjusted EBITDA margin1 improvement of 290 basis points to 38.2%. Adjusted EBITDA margin1 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 compl