Applied Aerospace & Defense forecasts full-year 2026 revenue between $670 million and $690 million, backed by a backlog of $1.13 billion, according to the company's Q2 2026 earnings announcement released today.
The backlog-to-revenue ratio of 1.64 to 1.69 times indicates the company's visibility into future work extends well beyond the current year. A backlog of that magnitude typically covers 18 to 20 months of production at the midpoint of the guidance range, a standard metric investors use to assess revenue stability in the aerospace and defense sector.
Applied Aerospace & Defense serves the commercial and military aerospace market. The company's Q2 backlog grew relative to revenue run rate, though the company did not break out orders by segment in its announcement.
The guidance assumes no material disruption to supply chains or program delays. Aerospace and defense firms have reported mixed results on both fronts over the past 18 months, with some suppliers managing inventory corrections while others face extended lead times on advanced materials and components.
The $20 million width of the revenue range represents 1.5 percent of the midpoint. At this stage, Applied Aerospace & Defense would have already secured the bulk of its annual revenue pipeline through signed contracts or purchase orders.
The company's backlog-to-quarterly-revenue ratio has expanded to 2.8 times the second quarter run rate. If Applied Aerospace & Defense converts its backlog at the same pace it did in the first half of 2026, the full-year outcome will land near the midpoint of the range.
