ARXIS (ARXS) is a private company. Arxis is a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting edge performance in extreme environments. Leveraging significant intellectual property and world-class engineering capabilities, we design and deliver innovative solutions that address some of our customers’ most complex performance needs. It has 60 employees.

Transcript

Operator

Good day. Thank you for standing by. Welcome to the Arxis Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. Please be advised today's conference is being recorded. I would now like to turn the conference over to Brian Winland, Head of FP&A and Investor Relations. Please go ahead.

Brian Winland — Head of FP&A and Investor Relations

Good morning. Welcome to the Arxis Second Quarter 2026 Results Conference Call. Joining me today are Kevin Perhamus, President and Chief Executive Officer, and Azad Badakhsh, Chief Financial Officer of Arxis. Before we begin, I'd like to remind everyone that today's discussion will contain forward-looking statements relating to future events and expectations. Actual results may differ materially from those projected due to a number of risks and uncertainties. Please refer to our most recent SEC filings and today's earnings materials for a discussion of factors that could cause actual results to differ materially from those forward-looking statements. During today's call, we may also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are included in today's earnings release and related presentation materials. With that, I'll turn the call over to Kevin.

Kevin Perhamus — President and CEO

Thanks, Brian. Good morning, everyone. I'll begin with the highlights from the quarter and what drove our performance, then spend a few minutes discussing why we continue to believe that Arxis is well-positioned to compound over the long term. With that, let's get started on slide three. We delivered another excellent quarter, with second quarter sales of $501 million, an increase of 25% year-over-year, and adjusted EBITDA of $211 million, up 38%. The strong revenue growth translated into adjusted EBITDA margins of 42.2%, an expansion of 390