Arxis (ARXS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 25% year-over-year to $501 million, with 21% organic growth and 4% from acquisitions, driven by strong demand across all end markets.

• Adjusted EBITDA rose 38% to $211 million, with margin expanding 390 basis points to 42.2%.

• Net loss narrowed to $4.9–$5 million from $29–$29.3 million, reflecting improved operating performance despite IPO-related share-based compensation.

• Free cash flow increased significantly, reaching $127 million for Q2 and $152.1 million for the first half, up 261% year-over-year.

• Multiple acquisitions (MagCanica, Micro-Tronics, Blue Line, Omnetics) completed or announced, expanding capabilities and exceeding internal M&A targets.

Financial highlights

• Q2 2026 revenue: $500.7–$501 million (+25% YoY); organic growth 21%; Adjusted EBITDA: $211–$211.5 million (+38% YoY); margin: 42.2% (+390 bps YoY).

• Free cash flow: $127 million in Q2, $152.1 million for first half (+261% YoY); net leverage reduced to 1.8x.

• Gross profit for Q2: $262.6 million (52.4% margin); Adjusted Net Income: $113 million (+726% YoY); Adjusted Diluted EPS: $0.28.

• Used IPO proceeds to repay $946 million of Term Loan B, reducing annual interest expense by over $70 million; repriced remaining loan, saving an additional $5 million annually.

• Ended quarter with $495 million in cash and $1.1 billion in available liquidity.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.96–$1.98 billion, up $100 million at midpoint; Adjusted EBITDA guidance increased to $790–$800 million, up $70 million at midpoint.

• Adjusted EBITDA margin expected at ~40.4% for 2026; organic growth for 2026 expected at approximately 20% across all end markets.

• 95% of full-year revenue is secured, providing high visibility.

• Guidance includes recent acquisitions and reflects robust end-market demand.