Applied Aerospace & Defense (NYSE: AADX) IPO’d this week.
It has a direct link to the deal everyone is waiting on — it's a SpaceX supplier.
Applied priced its IPO at $20 a share, raising about $650 million. That values the company near $3.4 billion.
Shares traded as high as $20.95 before closing at $19.01 — down 5% on the day. Not the pop new IPOs usually expect.
Part of that may be timing. SpaceX is pricing its own IPO at $135 a share, valuing it near $1.75 trillion. And investors may simply be waiting for Elon Musk’s next IPO.
Here's what Applied actually does.
It builds hardware for space launch, including propellant tanks and components for SpaceX's Falcon 9. It also makes parts for drones and solid-rocket motors that power missiles.
Space, drones, and missiles — that checks a lot of boxes investors care about right now.
The numbers show growth. First-quarter sales rose almost 40% year over year to $134 million. Pro forma 2025 sales were about $604 million.
But the company isn't profitable. It reported a first-quarter operating loss of $57 million. It does generate positive adjusted EBITDA — $28.7 million in the quarter.
The backlog stands at nearly $1.1 billion in contracts, much of it tied to the U.S. government.
A few things worth noting. Private equity firm Greenbriar owns about 81% after the IPO, so public float is limited. And the business was assembled through a series of acquisitions, with more deals planned.
CEO James "Trip" Ferguson previously ran the space and directed-energy unit at AeroVironment.
I covered the drone IPOs earlier — Swarmer +1,365% and AEVEX is up 38%.
AADX seem to be overshadowed by the upcoming SpaceX IPO. I’m planning to buy a small position in the stock. I think shares could rally after SpaceX goes public.
Want to invest before IPO day?
Ian Wyatt
Editor, IPO Watch