EPS of $0.138 missed estimates of $0.141 and sales of $47.3M beat estimates of $45.6M. The stock declined following the earnings release, but it is holding up OK now, and it has seen a healthy increase over the past year, and so some profit-taking here makes sense. Sales grew 10% year-over-year, and its Adjusted EBITDA decline was mostly FX-driven. The real story is bookings, up 17% year-over-year, and a growing backlog. Debt levels are healthy, and two classified defense programs are expected to begin deliveries in Q3 2026. It has structural tailwinds from defense spending, its margins are expanding, and while it trades at a somewhat high valuation for its current growth levels (28X forward earnings), we think it can continue to perform well over the long term.
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