Applied Aerospace & Defense, Inc.

This Quarterly Report on Form 10-Q contains forward-looking statements that reflect, when made, Applied Aerospace & Defense, Inc.’s (the “Company”, “we”, “us”, and “our”) current views with respect to current events, certain investments and acquisitions and financial performance. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy, prospects, plans and objectives, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would,” the negative of these words or other similar terms or expressions, although not all forward-looking statements contain these identifying words.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors. Refer to Item 1A. Risk Factors for additional information. Such risks, uncertainties and other factors include, but are not limited to:

•a significant decline in business with key customers could have a material adverse effect on us;

•any significant cancellation, reduction or deferment of orders by customers could have a material adverse effect on our business, results of operations, prospects, and financial condition;

•if we are unable to adapt to technological change, demand for our capabilities may be reduced;

•if we fail to establish and maintain important relationships with government agencies and prime contractors, our ability to successfully maintain and develop new business could be materially adversely affected;

•government agencies may directly or indirectly request or encourage us to make investments into our business that do not directly benefit shareholder interests;

•our growth strategy includes acquisitions, which entails certain risks to our business and financial performance, and our business may be materially adversely affected if we cannot consummate acquisitions on satisfactory terms or if we cannot effectively integrate acquired operations;

•we rely on the significant experience and specialized expertise of our senior management and engineering and operational staff, and must retain and attract qualified and highly skilled personnel to grow our business successfully;

•we may be unable to obtain critical components, raw materials, and services from suppliers and subcontractors, which could disrupt or delay our ability to deliver products to our customers and increase our costs;

•we may not have the ability to renew facilities leases on terms favorable to us and relocation of operations presents risks due to business interruption;

•technology failures, cybersecurity breaches and other unauthorized access to or use of our information technology systems or sensitive or proprietary information could have a material adverse effect on our business and operations;

•defense spending and government defense budgets may change due to various economic conditions and other factors, which may cause our operating results to fluctuate;

•our business and operations expose us to numerous legal and regulatory requirements, and any violation of these requirements could have a material adverse effect on our business, results of operations, prospects and financial condition;

•we, our operations and our products are subject to environmental, health and safety laws, regulations and permits, which may result in significant liabilities, obligations and compliance-related costs;

•our failure to comply with applicable economic and trade sanctions could materially adversely affect our reputation and results of operations;

•if we are unable to adequately enforce and protect our intellectual property or defend against assertions of infringement, our business and our ability to compete could be harmed;

•tariffs on certain imports to the United States and other potential changes to U.S. tariff and import/export regulations could have a material adverse effect on global economic conditions and our business, results of operations, prospects and financial condition;

•our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility;

•servicing our indebtedness requires a significant amount of cash, our ability to generate cash depends on many factors, and any failure to meet our debt service obligations could have a material adverse effect on our business, results of operations, prospects, and financial condition; and

•other matters described under “Risk Factors,” in the prospectus dated June 2, 2026, as filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (the “Prospectus”).

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)