Applied Aerospace IPO: Shares of defense contractor and Boeing supplier become available

Preliminary trading in shares of Applied Aerospace & Defense, which develops equipment for aerospace defense companies, has begun on the Freedom client trading system. The offering comes amid growing investor interest in the sector, which has been fueled by conflict in the Middle East and increased U.S. military spending. Later on June 3, Applied Aerospace securities will appear on the New York Stock Exchange under the ticker AADX.

Applied Aerospace & Defense, a manufacturer of components for missiles and aircraft, raised $650 million in an IPO on the New York Stock Exchange, Reuters reports. The company offered 32.5 million shares at $20 per paper - with a stated price range of $18-21. Based on the listing results, the company's value can be estimated at $3.4 billion, Bloomberg calculated.

Jefferries, Morgan Stanley, BofA Securities and RBC Capital acted as lead organizers of the transaction.

Applied Aerospace & Defense was formed just six months ago, in December 2025, by the merger of two of the oldest players in the defense industry that were owned by the investment firm Greenbriar: Applied Aerospace and PCX Aerosystems. The new entity designs, develops and manufactures components for space and launch systems, military aviation, communications, intelligence and precision weapons. Its products include reusable landing systems for launch vehicles, steering surfaces for airplanes, fuselages and solid rocket motor bodies.

Customers include major defense contractors and fast-growing technology companies, including Anduril Industries, Boeing and GE Aerospace, Applied Aerospace said on its website.

The company's revenue grew 24.8% last year to $498.8 million, according to documents sent to the regulator. The company remains unprofitable: in 2025, the net loss decreased by 51% to $17 million, but in the first three months of 2026 it doubled compared to the same period a year earlier. As of March 31, the total debt amounted to about $1 billion, and the company plans to use most of the IPO proceeds to pay it off.

According to Applied Aerospace, it has about $1.06 billion in contracts, and estimates potential future deals at about $3.8 billion.

After the IPO, Greenbriar will retain an approximate 81% stake in Applied Aerospace, which means it will qualify as a "controlled company."

The listing comes with increased investor interest in the defense industry as the conflict in the Middle East continues and the U.S. government increases military and space spending, Seeking Alpha notes. Players in the sector have taken center stage in the U.S. IPO market as they rush to capitalize on the opportunity, as well as the excitement ahead of SpaceX's initial public offering. In recent weeks, aerospace components manufacturer Arxis and drone developer Aevex Aerospace, for example, have listed in New York. Quotes of Arxis have grown since mid-April by 18%, Aevex shares have added 67%.

Freedom Broker analyst Alem Bektemirov notes that space and launch systems are one of the largest and fastest growing markets. The World Economic Forum forecasts that the space economy will triple in size by 2023 and reach $1.8 trillion by 2035. Bektemirov predicts that Applied Aerospace's revenue will exceed $5.1 billion by that time.

Freedom has a $26.8 target price on the company's stock, which implies a potential upside of 34% to the offering price.

However, the analyst notes the risks Applied Aerospace may face. Defense spending and government defense budgets can fluctuate in response to various economic conditions and other factors, which could cause the company's operating results to fluctuate. In addition, its strategy includes acquisitions, which could adversely affect its financial performance if it is unable to effectively integrate acquired businesses.

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Freedom clients will be able to get access to shares of Applied Aerospace & Defense before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the U.S. exchanges open (from 15:30-16:30 Astana time). To participate, click on the ticker AADX.

This article was AI-translated and verified by a human editor