Madison Dearborn-backed defense contractor AEVEX files for U.S. IPO

A sign outside the New York Stock Exchange marks the intersection of Wall and Broad Streets in New York. (AP Photo/Julia Demaree Nikhinson, File)

Private equity-backed AEVEX filed for an initial public offering in the United States on Monday, as it looks to tap into investor enthusiasm for the defense sector.

The U.S. IPO market remains accessible despite the ongoing conflict in the Middle East, with some issuers in recent weeks braving market volatility to push ahead with their listings.

The defense technology prime contractor reported a net loss of US$16.8 million on revenue of US$432.9 million in 2025, compared with a net loss of $78.6 million on revenue of $392.2 million a year earlier.

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AEVEX, backed by buyout firm Madison Dearborn Partners, and some of its existing shareholders plan to sell shares in the offering.

The Solana Beach, California-based company provides airborne intelligence, surveillance and reconnaissance offerings to its customers.

AEVEX has delivered 6,200 autonomous systems and has another 3,900 committed through the end of 2026. Its funded backlog stood at $503 million as of December 31.

The bulk of its revenue comes from sales to the U.S. government and its agencies.

Global defense spending is accelerating as countries across the world ramp up modernization initiatives and invest in next-generation advanced systems to counter adversaries.

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U.S. President Donald Trump earlier this year called for a $1.5 trillion military budget in 2027, significantly higher than the $901 billion approved by Congress for 2026.

Madison Dearborn and CoVant Management bought AEVEX from buyout firm Trive Capital in 2020.

AEVEX will list on the New York Stock Exchange under the symbol “AVEX.” Goldman Sachs, BofA Securities and Jefferies are the lead underwriters for the offering.

(Reporting by Arasu Kannagi Basil in Bengaluru. Editing by Alan Barona)