Arxis (ARXS) Q3 2026 Earnings Call Transcript

Our strong performance this year, along with contributions from recent acquisitions, supports another increase to our full-year 2026 guidance. We are also introducing our 2027 outlook Let me explain what is driving our growth and how we expect that momentum to carry into next year. Let's turn to slide 4. As we introduce our 2027 guidance I want to take a moment to revisit our layer cake revenue model and explain 1 of the key drivers behind our current growth. A concept we call ramp capture. It comes from 2 things. Growing with customers as they increase production and winning new content on existing platforms with our technology. Which then scales to full rate.

This happens as we use Edge to design our products into the right platforms with increasing production rates. This year, many of our customers increased production at the same time. Lifting growth above our long term algorithm. We saw this on platforms where our content is designed in, including Patriot and other missile programs, F-35 electronic warfare, commercial aerospace, including the 737, and industrial applications. Our guidance reflects continued ramp capture in 2026 and 2027. We do not expect to keep growing at this year's rates. These programs are building a larger portfolio of recurring revenue. What changes is the revenue base. Not the growth rate.

Beyond 2027, we expect our long term algorithm of high single digit organic revenue growth and low double digit adjusted EBITDA growth to compound over time on this larger base. Turning to slide 5. We continue to execute our M&A strategy, by adding complementary businesses that strengthen our portfolio support long term growth. Our 2 most recent acquisitions, StrataEdge and Shaft, are good examples. Starting with StrataEdge, they manufacture specialized ceramic packages for high frequency, high power electronics, used in advanced defense systems. 1 of their key applications is missile defense. Where their products support the Seeker Electronics and manage extreme heat while maintaining electrical performance. This is highly specialized technology that complements our existing RF and microwave capabilities.

The second acquisition is Schatz bearings, our 4th bearings business alongside Kamatics, GRW, and RWG. Schatz adds precision bearings for aerospace, defense, and industrial applications. Like our existing bearings businesses, Schatz brings highly engineered products, proprietary technologies, and strong customer relationships. Making it an excellent fit with our business model. Together, The combined purchase price for these 2 acquisitions was approximately $151 million which is less than 10x estimated 2027 adjusted EBITDA. Further demonstrating our disciplined approach to acquire high quality businesses at attractive valuations. Our partnership with Arcline is core to our M&A strategy. Arcline's 70 person team brings deep expertise in sourcing, diligence, and transaction execution.

While our operating teams provide the technical expertise customer relationships, integration capabilities to help acquired businesses grow. We built a highly repeatable M&A engine that brings together our operating expertise and our clients' investment capabilities. And our combined capabilities give us a strong platform for continued growth. Turning to slide 6. We have discussed how we are growing through ramp capture and acquisitions. Both are grounded in our business model. ArcSys designs and manufactures proprietary highly engineered components for mission critical applications. Many of them deliver cutting edge performance at the extreme. High heat, shock, vibration, and the demands of space and missile flight where off the shelf parts fail.

Our engineers work directly with our customers' engineers to develop custom solutions that get designed into the platform's bill of materials typically as the only qualified part. Qualifying a part for these environments is demanding and expensive, So once designed in, our parts remain in place for decades. As platform requirements become more complex, demand for many of our technologies and products grows. Customers are designing them into new platforms, and we are winning new programs as a result. That combination of proprietary technology, long platform lives, and diversification across customers and end markets creates a durable business across both our electronic and mechanical segments.

On slide 7, edge is how we organize our teams, to pursue new business and execute across the company. It starts with a decentralized operating structure that keeps our teams close to customers and accountable for performance. Supported by common processes across the company. Our new business engine brings engineers and sales teams together to identify opportunities, solve customer problems, and win new programs. Our repeatable acquisition engine, unified by our long standing partnership with Arcline, complements that organic growth. And our 2026 execution demonstrates how these elements work together. On slide 8, our long term growth algorithm remains unchanged.

We target high single digit organic revenue growth driven by mid single digit new business generation, and mid single digit pricing. With approximately 50% incremental EBITDA conversion. That translates into low double digit organic EBITDA growth. M&A provides an additional layer of growth supported by a repeatable acquisition strategy. Our long term algorithm is not built around today's demand environment. it is built around what we believe we can consistently deliver over decades. We all know markets can change.

Which is why our algorithm does not assume any contribution, from outsized ramp capture or underlying market growth With that, I will turn it over to Azad to walk through our third quarter results and our guidance for the remainder of 2026 and full-year 2027.

Azad Badakhsh:Thanks, Kevin, and good morning, everyone. I will begin on slide 9. Q3 revenue was $564 million, an increase of 36% year-over-year. consisting of 29% organic growth, and a 7% contribution from acquisitions. Turning to profitability, Q3 adjusted EBITDA was $256 million, with margins expanding 840 basis points year-over-year to 45.4%. Margin expansion was driven by operating leverage from higher sales volumes, strong pricing realization, and continued productivity and cost optimization initiatives. Free cash flow was $150 million in the quarter, up 117% year-over-year. Reflecting higher earnings and improved net working capital dynamics. These results demonstrate our ability to convert earnings into cash.

Turning to slide 10, our balance sheet remains well positioned supported by earnings growth and healthy cash generation. During the quarter, we further reduced net leverage to 1.6x, down from 1.8x at the end of the second quarter. Together with the capital structure improvements completed as a result of our debt paydown from the IPO and repricing, our low leverage profile and strong cash generation, provide significant capacity to support our continued M&A momentum. Looking ahead, we remain focused on disciplined capital allocation, maintaining a prudent leverage profile, and preserving the capacity to pursue attractive acquisition opportunities. Turning to slide 11.

We are raising our full year revenue and adjusted EBITDA guidance based on strong year to date performance and increased visibility into the remainder of 2026. We now expect revenue of $2.05 billion to $2.07 billion, an increase of $90 million at the midpoint. Compared to our prior guidance. At the midpoint, this represents approximately 29% year-over-year growth, including 22% organic growth. We are raising adjusted EBITDA guidance to $855 million to $865 million, up $65 million at the midpoint. This implies an adjusted EBITDA margin of approximately 41.7% up 130 basis points from our prior guidance. The increase is driven by higher volumes attributable to ramp capture stronger operating leverage across our existing business.

Our updated guidance also includes approximately $60 million of incremental revenue and $20 million of incremental adjusted EBITDA from the recent acquisitions of Omnetics, Schatz, and StrataEdge. We are raising our margin outlook despite approximately 30 to 40 basis points of dilution from the acquisitions completed this year. We expect this dilution to be temporary as we drive margin improvement through the execution of proven VPC playbook and the implementation of ArcSys Edge. Turning to slide 12, we show our latest organic growth expectations by end market. Incorporating our third quarter results and outlook for the remainder of the year.

We now expect organic growth of approximately 20% or greater across each of our 3 end markets supported by continued customer demand and new business activity. This broad based performance supports our increased full year guidance. And finally, on slide 13, we are pleased to provide our initial outlook for next year. For FY 2027, we expect revenue of $2.4 billion to $2.5 billion representing organic growth of 10% to 15%. And adjusted EBITDA of $1.01 billion to $1.06 billion with an adjusted EBITDA margin of 42.1% to 42.4%. Please note that 2027 adjusted EBITDA margin guidance includes a approximately 20 to 30 basis points of dilution from acquisitions completed in 2020.

Our 2027 guidance reflects continued ramp capture which is expanding our revenue base faster than our long term growth algorithm. That raises the revenue base we compound from. It does not change the growth rate. Our long term algorithm of high single digit organic revenue growth and low double digit adjusted EBITDA growth is unchanged. Overall, we expect another year of strong organic growth and continued margin expansion. With that, I will turn the call over to the operator for questions.

Operator:Thank you. To withdraw your question, please press 11 again. In the interest of time, we do ask that you limit your questions to 1 question and 1 follow-up. Please stand by while we compile the Q and A roster. Our first question comes from Sheila Kahyaoglu of Jefferies. Your line is open.

Analyst:Good morning, guys. The results are so good. I do not know what to ask, actually. Maybe if we could talk about, the top line first to start. Hear me okay, by the way?

Kevin S. Perhamus:Yeah. Good morning, Sheila. Okay. Good morning. Sorry about that. Maybe just on the top line, can you give us a better feel for seasonality of the business as it relates to what is implied in Q4? I know you have talked about purposeful factory planning in the past. And getting ready for that. And I guess, what are some of the what have you seen for Q4 performance, whether they are still a sense of that or to outperform what you have guided here? Yeah. No. You are exactly right. We have seen this in prior years as well. We stepped down a little bit from the Q3 revenue number because there are simply less working days in Q4.

And that is a combination of holidays and then some intentional preventative maintenance that we do the end of the year to gear up and get ready for next year. So all you are seeing. it is as simple as that. Okay. Perfect. And then maybe if I could just follow-up with the if you could tease out what drove some of the robust margins in the quarter, 45%, if seems like it did carry some M and A dilution as well. So maybe if you could just level set us on the operating performance as this a new standard that you are going to put up here? Yeah. There was a little bit of dilution. From the acquisitions.

Not that much. What really drove the results in the quarter was high single digit, Pricing came through, and normally, that is mid single digit. So we got a little bump from that. And then the operating leverage So I would not call it a new standard. You know? I would I would encourage you to zoom out and look at the full year guide, which is about 41.7% for EBITDA. So let's, I think that is a better number. To use and as a jumping off point as we go into next Great.

Analyst:Thank you.

Azad Badakhsh:Sheila, I will do. I will just jump in and answer the questions specifically about dilution. In Q3, we did see about 40 basis points of dilution, so our reported margin of 45.4% would have been approximately 45.8%, excluding the impact. In Q4, that dilution is gonna increase. As, you know, the full contribution of the 3 acquisitions that we just completed. Kick in. So that expect dilution of about 100 basis points. In Q4.

Analyst:Perfect. Thank you.

Operator:Thank you. And our next question comes from Christine Lewag of Morgan Stanley. Your line is open.

Analyst:Hey. Good morning, guys. And, you know, echoing what Sheila said on the performance, very good revenue growth But, you know, maybe taking a look back at 2026 so far, I mean, you look at the organic growth you guys have printed, you are at 17% in Q1, 21% in Q2. And, you know, 29% in Q3. I mean, this is above the growth algorithm you guys have talked about, which was historically 9%. So when we kind of take a look back here, where did you see the most difference in what your initial outlook was? Did you have more market share capture? Did you have better pricing? Are sunsetting things just not sunsetting?

Because I think in terms of end markets, that is kind of fairly uniform in the industry. So you guys are doing something a little bit more special than peers, and it would be helpful to take a look back and see what drove that.

Kevin S. Perhamus:Yeah. Sure. Good morning, Christine. I think that gives us a good opportunity to reiterate the concept that we talked about in the opening remarks. Which is the ramp capture. You know, we are designed in on platforms, and those platforms are built at a at a certain rate. It just so happens that in 2026, many of the platforms that we are designed in on ramped simultaneously. And you know, it is somewhat intentional because we target growing platforms and, you know, the platforms that are growing tend to need our products, you know, because they are on the cutting edge of technology and performance.

And so, you know, many of those platforms ramp simultaneously and stacked up, you know, in the layer cake model to create an outsized growth rate. You know, we are we are cautious, to not extrapolate those ramps into the future, which is why you know, we look at a long term algorithm of high single digit growth and we talk about that over, you know, decades. But this is a little bit of an unusual time because of all the ramps happening simultaneously. Okay. Great. So the 10 to 15 is more going back to a more normalized rate. Is that a fair look? That is fair. Yeah.

Closer to a more normalized rate, but north of our long term long term algorithm just because we can see that there will be some continued ramp. Know, and that is visible to us already you know, as we look into Edge and we see our secured revenue and how it is shaping up for next year. Great. Super helpful. And if I could sneak a last 1 in, Regarding M and A, we have seen the valuation of a lot of defense assets in the in the public markets anyway drop.

I was wondering, when you look at the availability of pricing and availability of assets in the private market, how is the pool looking Does this kind of pricing this dislocation seeing in the public markets, is that echoed in the privates? And how do you see your pipeline? Yeah. Honestly, it is not changed much at all. You know, the pipeline is full. We are working on lots and lots of deals. We track You know, over a thousand companies in our Edge system. And, you know, we are working on many things simultaneously. Market does sort of bifurcate down into you know, large deals and small deals.

The large deals you know, are trading at higher multiples and, you know, I do not think that is changed in this. In the smaller deals. This is, like, less than $25 million of EBITDA. Type companies tend to trade for the lower and, you know, that is actually reflected in what we announced in terms of Schatz and StrataEdge. You know, we will be at less than 10x, you know, in 2027 on those 2 deals. So yeah, it is we have not seen anything change.

Analyst:Great. Thank you very much.

Operator:Thank you. And our next question comes from Peter Arment of Baird. Your line is open.

Analyst:Hey, good morning, KP. it is Admiral Echo, everyone else's. Sentiments. Nice results. KP, can you remind us a little bit about your algorithm when you think about forward guidance for 2027, like how much coverage you maybe have today and where you expect to be to start the year?

Kevin S. Perhamus:Yeah. Sure. Good morning, Peter. We like to start the year roughly half filled in. You know? And I say roughly because it is it is a real. it is a bottoms-up exercise. it is not tops down. it is depends on the business units. So, we can see that we are, you know, between what we already have secured for 2027 and what we have coming in the door very soon. That we are gonna be in a good position against that metric. And that is why we were confident enough to give this guidance here early earlier than, you know, we probably expected to. That we are, you know, gonna see positive growth next year.

So next year's guidance is 10% to 15%, which is mid single digit price, mid single digit new business, and then 0 to 5. Of continued ramp capture. Super helpful. And then just a quick follow-up. With all these missile framework agreements being established and you guys are being strong supplier into the defense and space end market. Are you seeing any potential opportunities there on any of these missile 'fran' agreements, any long term agreements possible? Or any color there would be helpful. There have been some initial conversations with customers. it is. it is-- they are making their way through the supply chain. Probably have not all reached us yet.

But we have not committed to anything, you know, We continue to. We like to operate, you know, on a purchase order to purchase order basis. It gives us better visibility, you know, we have more free. You know, control. So there are conversations happening, but, you know, nothing firm yet.

Analyst:Got it. Thanks, KP. Nice results.

Operator:Thank you. And our next question comes from Jon Gourdine of Citi. Your line is open.

Analyst:Hey, guys. Thanks for taking my question. I wanted to just focus on the incremental margin outlook Obviously, you guys are performing very well. Maybe you can talk about the role of price versus productivity in driving the percent incremental margins? As we look out next year and any other puts and takes that we should be thinking through?

Kevin S. Perhamus:Yeah. Good morning, John. Yeah. So we are just continuing to assume mid single digit price mid single digit new business, and then, you know, the 2 of those things together create. You know? And, sorry, the third piece is the cost control. Down to a very low single digit growth rate. And when you put those 3 things together, it results in a 50% conversion margin plus just based on the gross margin that we have in our products. So, you know, the VPC algorithm, it is unchanged. It certainly outperformed this year, and, you know, we have talked about why that is.

There were some acquisitions that came through in 2024 and 2025 that had more opportunity for pricing adjustment and cost reductions. And so those, you know, have resulted in a higher conversion margin this year. But we think it will revert back to the 50% as we go forward. Got it. And when we think about kind of the new business, new volume you know, that is being added, that comes in at 50% incrementals as well, or is that, you know, higher or lower than the enterprise average? Yeah. The new business margin is very similar, to the existing business margin. The margin is very consistent across electronic and mechanical. Across the 3 markets. So you know.

And lastly, in the OE and aftermarket. So our margins are pretty consistent across all the different ways that we slice the business. Okay. And then just last 1. Normally, I would not ask you guys about supply chain, but things like semiconductors, etcetera, are coming up more and more as supply chain issues. You guys are knocking on 50% electronic components. So this is more just the temperature check. Anything in the supply chain of note, and how are you handling that? No. Nothing in nothing in our supply chain. That. You know, the issues could impact supply chain further upstream from us. But, you know, we are at the beginning of the supply chain.

We are converting in most cases, you know, raw chemicals or metals into products, so not impacted.

Analyst:Thank you. Thanks, John.

Operator:Thank you. And our next question comes from Scott Mikus of Melius Research. Your line is open.

Analyst:Nice quarter. KP, quick question, just kind of high level. I mean, whether we look at companies like TransDigm, Danaher, Roper, Ingersoll Rand, Fortive, Rollins, etcetera. We have just seen a lot of stocks that are M&A compounders not work over the past roughly 3 to 5 years. I am just curious when you sit with Rajeev and the rest of the board, why do you think those compounders stopped working, and when you are discussing with the board, how do you make sure that does not happen to ArcSys?

Kevin S. Perhamus:Yeah. Good morning, Scott. Yeah. So you know, we are we are focused on ourselves, so I really cannot comment on the other compounders. But what we think is going to work over the long term and probably differentiate us is that we have the VPC algorithm. We have ArcSys Edge. Right? So we can drive new business, and we are really focused on winning new business all the time. You know, that. that is coming through at a very steady, you know, mid single digit rate. And then we have a unique relationship with Arcline that others do not have where,, you know, we are gonna be able to probably execute on more M&A than others.

We can do big deals, small deals. We can do many deals simultaneously. And, you know, being able to stay focused on new business, price, and acquisition simultaneously while controlling costs. You know, maybe not everybody can do that. You know? We have a unique structure and a unique relationship that sets us apart Alright. I will stick with 1. Thank you. Yeah. Thanks, Scott.

Azad Badakhsh:The only the only other thing I would add is we are really religious about sticking to business models that we will only buy companies if they check our business model scorecard.

Analyst:Okay. Got it. Thank you.

Operator:Thank you. And our next question comes from Myles Walton of Wolfe Research. Your line is open.

Analyst:Hi, good morning, everyone. This is Greg Dolberg on for Myles. I was just curious, in the 2027 outlook, is there any bifurcation in organic growth by segment And then maybe following on to that, could you provide expectations by end market next year?

Kevin S. Perhamus:Yeah. Good morning. There is no bifurcation by segment or end market. We actually think all 3 of the end markets are going to grow in the same-- at the same rate, 10% to 15% organically. And the same is true for electronic and mechanical. So pretty consistent, very diversified as always.

Analyst:Easy enough. Thank you. And then, Azad, maybe can you touch on your expectations for cash conversion next year?

Azad Badakhsh:Sure. Cash conversion for next year is gonna be what it you know, the exact same framework it always is, which is we always focus on operational free cash flow, which is simply EBITDA less CapEx, less change in net working capital. So you have a pretty good sense of EBITDA from our guide and revenue. Change in net working capital and CapEx each, contribute about 3% of revenue. So the math for operational free cash flow is pretty simple. And then I think the rest between interest and taxes is pretty easy to model.

Analyst:Great. Thank you.

Operator:Thank you. And our next question comes from Noah Poponak of Goldman Sachs. Your line is open.

Analyst:Hey, guys. We have got Conor on for Noah this morning. Thanks for the time, and thanks for taking my question. I had a quick question on what the updated full year margin guide implies for the next quarter. I think if I have my math right, the 41.7% at the midpoint implies a little over 500 bps of compression quarter over quarter. And I thought that you guys are anticipating the 100 bps of dilution from M&A next quarter Can you help us understand what is recurring versus nonrecurring in the margin improvement we saw this quarter and how that is expected to continue into the next Yeah.

Kevin S. Perhamus:Good morning, Connor. So, you know, as we said, high single digit pricing came through in Q3. That will revert back to mid-single-digit pricing in Q4, and then the operating leverage that we saw in Q3 will reverse a little bit because there is less revenue. Caused by less working days in Q4. And so it is you know, it is as simple as that. there is nothing else going on there. Okay. And then, JP, just on that operating leverage you saw in the third quarter. I know that the Mechanical Components segment saw really strong operating leverage in Q2, and that is why the margin stepped up from Q1 to Q2.

Last quarter on the call, I think you guys were anticipating that the rest of your margins for Mechanical would kind of be in line with the broader first half margin, closer to 40%. So did that operating leverage continue? In Mechanical along with better pricing, or was there just more productivity that you are able to eke out of the segment than you previously thought? Yeah. No. Both segments actually benefited from the high single digit pricing that came through and the operating leverage. So, you know, both outperformed the 40%, you know, average out to 45.4% for the quarter.

But as we look to the full year and you zoom out, you know, they, you know, average out to 41.5%, 41.7%.

Analyst:Okay. Got it. Thank you, guys.

Operator:Thank you. And our next question comes from Ken Herbert of RBC Capital Markets. Your line is open.

Analyst:Yeah. Hi. Good morning. KP and Azad. I just wanted maybe ask a higher-level question here on the supply chains today. It seems like continue to hear about continued struggles for defense, but also aerospace ramping up a lot of you know, basic electronic components and other subsystems. And it would appear to really play to your ability to drive greater volume growth through you know, more second sourcing opportunities just as the supply chain really struggles.

A lot of OEMs are looking for, you know, other solutions and suppliers that can execute How do you balance what probably is a fairly robust opportunity environment today with, you know, wanting to continue to maintain the price discipline Obviously, new business is a big part of your equation, but I can imagine there is a healthy debate on which business to win and durability of that business. Can you just walk through your approach to that? Because it seems like that gets at the core of your ability to really maintain the incremental margins with obviously driving the new business growth as well.

Kevin S. Perhamus:Yeah. that is a good question, Ken. So we are hearing about supply chain constraints. You know, it is not impacting us. We have done a really good job of investing and staying in front of it. You know, with our decentralized model each general manager has been managing their CapEx and their capacity well enough to not cause those issues here. There could be customers that come to us with issues around, you know, supply chain, and then we can jump in and help out. I would I would say as a matter of practice and as a matter of, strategy, it is not our strategy to go off and try to pick off, you know, second source products.

Our whole new business engine is a little bit different. You know, we form teams of people, sales, you know, salespeople and engineers work together and then go to our customers and solve technical problems. Usually, not supply chain problems, and get our products designed into their platform, platforms where they stay for a long time. So, You know, it could be a short term opportunity, but it would not change our long term strategy. Around what we focus on. Focus on helping to solve technical problems and get our products designed in usually, as the only source. that is helpful, KP.

And as you think about specifically your comments on supporting the ramp, what is your confidence on some of these major missile and munition programs in particular that you will see sort of the expected volumes you know, 3 to 5 years from now? Are you capacitizing to support those ramps and building the business to support 3x to 4x volume or maybe taking it a bit more gated, I guess, as you think about the next few years? Yeah. We step our capacity up as we see the demand come to fruition in the form of actual purchase orders. And so, you know, we are we are across the, 70-odd factories that we have in the 51 business units.

You know, we are looking at that very carefully, you know, again, decentralized, so the general managers are very focused on that. And, yeah, we, I do not see any. You know, it is happening already in some places, and, you know, we add incremental capacity to those facilities. And we are able to meet the demands. You know? So we do not see that becoming an issue.

Analyst:Great. Thank you, and nice results. Thank you.

Operator:Thank you. And our next question comes from Noah Lattimer of William Blair. Your line is open.

Analyst:Great. KP and Azad, good morning. Thanks for taking my questions. To start off, are there any particular component areas that are seeing heavier demand in others, for example, bearings? And then just on that, you noted that Schatz is your fourth bearings-related acquisition. Curious if you can walk us through how integration cross-selling go between these very similar type businesses, how do you expect Schatz to cross sell, for example, with Kamatics and others? And then are there areas of overlap, where you kind of have to work through those dynamics between those similar businesses? Thanks.

Kevin S. Perhamus:Yeah. So good morning, Noah. So the first question about, you know, is it hitting any 1 particular product set? The answer is no. it is very diversified. it is across, you know, all of our electronic and mechanical components. So that 1's easy. You know, it is it is obviously not exactly uniform across, but, I mean, it is very diversified. So, you know, the ramp capture is happening in just about every single 1 of our business units. And then to your second question about Schatz and how it integrates, Shats becomes part of the block that Kamatics is in. They are they are actually geographically not that far away from each other.

And so those 2 teams are working together. Schatz is being integrated into ArcSys Edge. And, you know, there is already cross selling opportunities being identified and, you know, all of the normal integration steps that we take, you know, are going well already at Schatz. The product, The products are complementary Between what Schatz makes and what Kamatics makes. You know, there is, Chats actually filled a product gap that we had so that we can offer more bearing products to our customers. And there is not actually any overlap or, you know, competition, per se, between those 2 businesses. So it is a it is a really good fit.

And the 2 teams are working really well together to grow the business now.

Analyst:Great. Thanks. And then just a quick 1 for Azad. Can you talk about the preventative maintenance that you mentioned for the fourth quarter? And just is it similar or comparable to what you experienced 4Q of 25? Is this just a normal way that we should think about the fourth quarter? Thanks.

Azad Badakhsh:Yeah. that is right. it is just normal course preventative maintenance. As a result of the less working days, that is often the, you know, the best time of the year to do some of that preventative maintenance. So it is just normal course.

Analyst:Great. Thank you.

Operator:Thank you. I show no further questions at this time. I would like to turn it back to Kevin S. Perhamus for closing remarks.

Kevin S. Perhamus:Yeah. Thanks, everyone. We appreciate your time today, and we look forward to speaking with you again next quarter.

Operator:This concludes today's conference call. Thank you for participating, and you may now disconnect.

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Arxis (ARXS) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool