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Defense · Drones · IPO · Private Equity
AEVEX Corp.
priced its initial public offering at $20 per share, raising $312 million, with Madison Dearborn Partners retaining 79.1% voting control, establishing a defense drone play heavily reliant on U.S. government contracts for 78% of its $433 million 2025 revenue. The IPO, trading on NYSE as AVEX from April 17, 2026, serves as a liquidity event for Madison Dearborn Partners, with proceeds funding AEVEX's balance sheet.
AEVEX operates as a defense prime contractor specializing in AI-enabled unmanned aerial systems, having delivered over 10,200 systems. However, its business model carries substantial risk due to its overwhelming dependency on the U.S. government for 78% of its revenue, exposing it to federal budget volatility.
The private equity firm's 79.1% voting control post-IPO creates governance concerns, limiting board independence. Valued at 5.0x its 2025 revenue with a $2.18 billion market cap, AEVEX reported a net loss of $16.78 million for the year ended December 2025.
The company's ambition to become a global leader in Unmanned Systems faces an unproven path to diversification beyond its primary customer.
