Arxis (ARXS) investor relations material

Company overview and business model

• Designs and manufactures proprietary, mission-critical electronic and mechanical components for extreme environments, serving aerospace, defense, medical, and industrial sectors.

• Operates a decentralized structure with 46 business units and leverages the Arxis EDGE system for data-driven growth and cross-selling.

• Products are typically designed-in for multi-decade platform lifecycles, resulting in high recurring revenue and customer retention.

• Revenue is highly diversified: 47% defense/space, 23% commercial aerospace, 30% industrial/medical; no customer or platform exceeds 7% of revenue.

• Growth strategy centers on organic expansion via the “layer cake” model and disciplined M&A, with 32 acquisitions since 2019.

Financial performance and metrics

• 2025 revenue: $1.59 billion, representing a 10.5% CAGR from 2021 to 2025 (pro forma basis).

• 2025 net income: $46.0 million (2.9% margin); Adjusted EBITDA: $571.3 million (35.9% margin).

• 2025 organic revenue growth: 8.9%; total revenue growth: 114.1% (driven by acquisitions).

• Free cash flow conversion for 2025: 454.0%; capital expenditures consistently below 3.3% of revenue.

• Significant leverage: $2.66 billion in debt as of year-end 2025; proceeds from IPO to reduce leverage.

Use of proceeds and capital allocation

• Estimated net proceeds of $930 million (at $26.50/share IPO price midpoint).

• $746 million to repay term loan borrowings; remainder for working capital and general corporate purposes, including potential acquisitions.

• Management retains broad discretion over use of proceeds.