Arxis Powers Ahead: 21% Revenue Growth and Robust EBITDA Expansion in Q1 2026
In its first earnings call as a public company, Arxis delivered a stellar performance in the first quarter of 2026. The company's sales soared to $459 million, representing a significant 21% year-over-year increase, while adjusted EBITDA climbed to $175 million, up a substantial 31% from the same period last year.
The revenue growth was broad-based and diversified, with new business wins, underlying market volume, modest price increases, and strategic acquisitions contributing mid-single-digit growth during the quarter. Notably, Arxis witnessed double-digit growth across all three of its end markets: defense and space, commercial aerospace, and industrial technology.
"We delivered an outstanding start to 2026," said Kevin Perhamus, CEO of Arxis. "Our first-quarter results reinforce our confidence in the full year outlook, and we are excited to initiate strong guidance for fiscal year 2026." The company's forward-looking statements suggest that it expects robust growth to continue, with a midpoint guidance range yielding 18% revenue growth and 27% EBITDA growth compared to prior year results.
Arxis's unique business model and playbook have been instrumental in its success. The company designs and builds proprietary components that perform in the harshest environments, including bearings, capacitors, connectors, and seals. These components are vital to advanced defense, aerospace, and industrial technology platforms.
"At the core of our model is a highly proactive and collaborative selling engine," explained Perhamus. "Our engineers meet with our customers' engineers. They solve a problem which results in a custom product that gets designed into the bill of materials, typically as the only qualified part, and then stays there for decades."
Arxis's proprietary technologies are a key differentiator, with 67 foundational proprietary technologies underpinning the company's 90% proprietary revenue. Examples include CryoFlex, part of its Pac Aero business, and K-Ron within the Comatix business. When applied to a bearing, K-Ron transforms a standard bearing into a highly engineered custom product with five to 10 times the value.
The company's diversification provides a stable foundation for growth, with approximately 40,000 part numbers, more than 600 platforms, and over 5,000 customers. Arxis's partnership with Arcline continues to be a strategic advantage in sourcing and executing acquisitions, including the successful completion of the Micro-Tronics acquisition in January.
As a result of its IPO, Arxis now has a strengthened balance sheet, achieving net leverage of 2x, positioning it to continue deploying capital across its M&A pipeline. The company's strong guidance for fiscal year 2026 suggests that investors can expect continued robust growth from this innovative player in the industrial technology sector.
