Like a Danaher or Roper Technologies, but specialized in mission-critical electronic and mechanical components for extreme environments.

Think of it as TransDigm Group, but diversified beyond aerospace and defense into medical and specialized industrial components.

• Electronic Connectors: Devices for establishing electrical connections between components or systems in extreme environments.
• Cable Assemblies: Integrated bundles of electrical cables or wires with connectors designed for specific signal or power transmission applications.
• Microelectronic Packaging: Protective enclosures and interconnections for miniature electronic circuits, ensuring performance in harsh conditions.
• RF and Microwave Products: Components specifically engineered for radio frequency and microwave signal processing and transmission.
• Power Products: Devices related to electrical power management, conversion, and delivery for mission-critical systems.
• Sensors: Components that detect and measure various physical phenomena, converting them into electrical signals for control and monitoring.
• Capacitors and Resistors: Fundamental electronic components used for storing electrical energy and precisely controlling current flow.
• Precision and Self-Lubricating Bearings: Mechanical components that reduce friction and support rotating or linear motion, often without external lubrication.
• Seals, Gaskets, and Springs: Essential mechanical components used for preventing leaks, creating tight junctions, and storing and releasing mechanical energy.
• Ducting: Engineered systems of conduits designed for conveying air or other gases in demanding aerospace and industrial applications.
• Radar Absorbing Materials: Specialized materials designed to absorb electromagnetic radiation, primarily used to reduce radar signatures.

Arxis (ARXS) sells primarily to other companies, not individuals. The company serves a highly diversified customer base, with no single customer representing more than 7% of its revenue for the year ended December 31, 2025, and its top ten customers together accounting for only 36% of revenue. Due to this diversification and the nature of its business, specific major customer names are not disclosed in the provided information.

Instead, Arxis describes its customers by the industries and types of companies it serves:

• Major aerospace and defense Original Equipment Manufacturers (“OEMs”) and Tier 1 and Tier 2 suppliers.
• Leading OEMs and their suppliers in the medical technology sector.
• Leading OEMs and their suppliers in other specialized industrial sectors, including high-end semiconductor testing, analytical devices, and industrial automation.

Kevin Perhamus, President and Chief Executive Officer

Kevin Perhamus previously served as the CEO of Arxis' Qnnect and Quantic businesses and the CEO of Winchester Interconnect. He also held prior leadership roles at Winchester Interconnect, Teradyne, and Amphenol. Perhamus has been with Arxis or its predecessor companies since 2020. Arxis itself is a result of a strategy executed by its sponsor, Arcline Investment Management, which has acquired and integrated over 30 complementary companies since 2019. His leadership in predecessor companies that were later integrated into Arxis indicates a pattern of managing private equity-backed entities as part of a larger acquisition strategy.

Azad Badakhsh, Chief Financial Officer and Treasurer

Azad Badakhsh previously served as a Managing Director at Moelis & Company, where he was also a Partner and Co-head of the Aerospace & Defense team. He brings extensive experience in M&A and capital markets to Arxis.

Jennifer Allen, Chief Legal Officer and Secretary

Jennifer Allen's prior experience includes serving as CAO, SVP, General Counsel, and Secretary at Triumph Group, and holding senior legal roles at CIRCOR and BAE Systems.

Jason Roth, President, Electronic Components

Jason Roth has held senior roles at TransDigm units and previously led Pacific Aerospace and Electronics. His background also includes engineering and leadership positions at Boeing Satellite Systems, Kimball Microelectronics, and Stellar Microelectronics.

Ross Sealfon, President, Mechanical Components

Ross Sealfon previously served as President & CEO of Quantic and held earlier leadership roles at Winchester Interconnect.

Key Business Risks for Arxis (ARXS)

1. Acquisition and Integration Risk: Arxis's growth strategy heavily relies on acquiring and integrating complementary companies, having acquired and integrated over 30 companies since 2019. The company explicitly states that "there can be no assurance that we will be successful in identifying, executing and integrating such acquisitions," indicating a significant risk that failed or poorly executed acquisitions could hinder growth, divert resources, and negatively impact financial performance.
2. Reliance on "Design-In" Wins and Platform Longevity: Arxis's business model is built upon having its proprietary, mission-critical components designed into customers' current and next-generation platforms, many of which have multi-decade lifecycles. The long lead times and significant investment required by customers to switch products create a high barrier to entry once designed in, contributing to a predictable, recurring revenue base. However, this also means that the company is dependent on continuously securing new design wins and that its revenue stream could be impacted if it fails to innovate, if customers choose competing products for new platforms, or if existing platforms face reduced demand or earlier-than-expected obsolescence.
3. Operational and Quality Control Risk in High-Stakes Applications: Arxis designs and manufactures highly engineered components for "mission-critical" applications in "extreme environments" where "high-cost-of-failure" is a characteristic. Customers demand near-zero defect rates and rely on Arxis for consistent quality and on-time delivery. Any significant product failures, quality control issues, or inability to meet stringent customer specifications could lead to severe reputational damage, loss of customer trust, financial penalties, and ultimately, a loss of market share and future business opportunities despite their strong track record and decades-long customer relationships.

Arxis (ARXS) operates in several significant addressable markets for its electronic and mechanical components, serving defense and space, commercial aerospace, medical technology, and specialized industrial sectors.

Electronic Components

• Aerospace Electronics: The global aerospace electronics market was estimated at USD 127.20 billion in 2025 and is projected to exceed USD 237.33 billion by 2035. North America accounted for over 42% of the total market share in 2025.
• Defense Electronics: The global defense electronics market was valued at USD 175.2 billion in 2024 and is projected to reach USD 302.8 billion by 2034. The U.S. defense electronics market was valued at USD 52.05 billion in 2024 and is projected to reach USD 65.91 billion by 2032.
• Space-based RF and Microwave Technology: The global space-based RF and microwave technology market was worth USD 8.25 billion in 2024 and is projected to reach USD 15.43 billion by 2033. Another estimate projects this market to reach approximately USD 25 billion by 2025. North America, particularly the United States, is expected to dominate this market.
• Medical Electronics: The global medical electronics market was valued at USD 10.68 billion in 2025 and is projected to grow to USD 16.73 billion by 2034. In 2025, North America held a dominant share of USD 4.11 billion in this market.
• Passive Electronic Components (Aerospace & Defense): The global passive electronic components market in the aerospace and defense industry was valued at USD 4.1 billion in 2025 and is estimated to grow to USD 5.77 billion by 2031. North America held 33.05% of this market's revenue in 2025.
• Industrial Automation Components: The global automation components market was valued at USD 161.04 billion in 2025 and is expected to reach USD 399.09 billion by 2035. The global industrial automation and control systems market was estimated at USD 226.76 billion in 2025 and is projected to reach USD 504.38 billion by 2033. The U.S. industrial automation market was valued at USD 49.8 billion in 2024 and is expected to reach USD 103.8 billion by 2032.

Mechanical Components

• Bearings: The global bearings market was valued at USD 54.10 billion in 2024 and is projected to reach USD 78.45 billion by 2030. Another report indicates the global market size was USD 50.16 billion in 2025 and is projected to grow to USD 124.07 billion by 2034. North America maintained a strong presence, reaching USD 13.5 billion in 2025.
• Aerospace Bearings: The global aerospace bearings market was estimated at USD 12.28 billion in 2025, growing to USD 17.54 billion by 2031. North America leads this market, holding a significant share of USD 6.72 billion in 2024.
• Self-lubricating Bearings: The global self-lubricating bearings market was valued at USD 5.63 billion in 2025 and is expected to reach USD 8.80 billion by 2034. The Aerospace & Defense application segment held a market size of USD 800 million. The United States led the metal self-lubricating bearings segment with a market size of USD 600 million and a 24% share in 2025.

Expected Drivers of Future Revenue Growth for Arxis (ARXS)

1. Strategic Acquisitions: Arxis has a stated strategy of creating a cohesive business through targeted acquisitions, having integrated over 30 complementary companies since 2019. The company operates in a large and highly fragmented market, which it believes provides ample accretive acquisition opportunities to accelerate its organic growth strategy.
2. New Product Development and Design-Ins: Leveraging its world-class engineering capabilities and significant intellectual property, Arxis collaborates with customers' engineers to develop custom, proprietary products for mission-critical applications. This process, referred to as adding new "layers" to its "layer cake" business model, involves designing components into both new and existing customer platforms.
3. Growth in Existing Platforms and Aftermarket Opportunities: Arxis' products are typically designed into customers’ platforms with multi-decade lifecycles and large installed bases. This creates recurring revenue opportunities through build-rate driven growth on these platforms, as well as aftermarket revenue from technology modernization cycles and parts replacement over the platforms' long service lives.
4. Cross-Selling Across Business Units: The company's proprietary business system, Arxis EDGE, is designed to enhance team-based selling and accountability, specifically aiming to increase cross-selling opportunities across its various business units and 47 customer-facing brands. This leverages the company's broad product portfolio and diverse customer relationships.
5. Secular Growth Trends in Key End Markets: Arxis serves demanding end markets such as aerospace and defense, medical technology, high-end semiconductor testing, analytical devices, and industrial automation. These sectors are characterized by unique performance requirements and resilient, long-term growth tailwinds, which Arxis is positioned to benefit from with its highly engineered, mission-critical components.

Inbound Investments

• Arxis was formed through a deliberate strategy executed by its sponsor, Arcline, and the Arxis management team, indicating a significant investment by the private equity firm Arcline.

Outbound Investments

• Since 2019, Arxis has acquired and integrated over 30 complementary companies, each selected for strategic alignment with its business model and IP-led component portfolios.
• The company's decentralized structure empowers segment and block leaders to identify and evaluate acquisitions that complement Arxis business units, pursuing multiple add-on opportunities simultaneously.
• Arxis actively integrates acquired companies into its proprietary business system, Arxis EDGE, to optimize commercial opportunities, grow revenue, and EBITDA.