Arxis Reports Q3 2026 Results: Raises Full-Year 2026 Guidance & Introduces 2027 Outlook

Executive Summary

On October 28, 2026, Arxis, Inc. (NASDAQ: ARXS) filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition), announcing its unaudited financial results for the third quarter ended September 30, 2026. The company delivered substantial top- and bottom-line growth, raised its full-year 2026 outlook across key metrics, and initiated strong 2027 financial guidance.

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Third Quarter 2026 Financial Performance

• Revenue: Reached $564 million, up 36% YoY compared to $415 million in Q3 2025. Organic growth was 29%, driven by broad-based demand across all three end markets.
• Profitability Turnaround: Generated GAAP Net Income of $84 million (14.8% net income margin) and Diluted EPS of $0.20, rebounding from a GAAP net loss of $(10) million in the prior-year period.
• Adjusted EBITDA: Rose 67% YoY to $256 million (compared to $153 million in Q3 2025), expanding the Adjusted EBITDA margin by 840 basis points to 45.4% due to operating leverage, strong pricing realization, and manufacturing productivity.
• Adjusted Net Income: Reached $160 million ($0.37 adjusted diluted EPS), up 498% YoY from $27 million in Q3 2025.
• Cash Flow: Operating cash flow reached $169 million (+118% YoY) and Free Cash Flow was $150 million (+117% YoY), buoyed by earnings expansion and enhanced working capital efficiency.

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Updated Guidance & Outlook

Full-Year 2026 (Raised)

• Net Revenue: $2,050 million to $2,070 million (a ~5% increase from prior midpoint).
• Adjusted EBITDA: $855 million to $865 million (an ~8% increase from prior midpoint).
• Adjusted EBITDA Margin: ~41.7% (+130 bps from prior expectations).

Full-Year 2027 (Introduced)

• Net Revenue: $2,400 million to $2,500 million (representing 17%–21% reported growth and 10%–15% organic growth).
• Adjusted EBITDA: $1,010 million to $1,060 million (+17% to +23% YoY).
• Adjusted EBITDA Margin: 42.1% to 42.4% (including 20–30 bps of temporary dilution from 2026 acquisitions).

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M&A and Strategic Execution

Arxis continued active portfolio expansion, acquiring Schatz Bearing and StratEdge, and closing the previously announced acquisition of Omnetics. This brings the company's total acquisitions to six year-to-date, executed in partnership with sponsor Arcline.