AXT, Inc. Posts Strong Fiscal 2025 Results Amid Defense Sector Momentum

AXT, Inc. (AXTI) delivered a strong finish to fiscal year 2025, reporting consolidated revenue of $287.4 million for the fourth quarter, a 14.2% increase year-over-year. Full-year revenue reached $1.11 billion, up 12.8% from the prior fiscal year. Adjusted net income for the quarter totaled $24.6 million, or $1.18 per diluted share, surpassing analysts’ consensus estimates by 9.3%. The company attributed growth to expanded production volumes and successful delivery of advanced aerospace components for U.S. Department of Defense programs. The results reflect AXTI’s strategic focus on high-margin defense contracts, including work for Lockheed Martin (LMT) and Raytheon Technologies (RTX). During the fiscal year, AXTI secured $320 million in new contracts, primarily in the areas of electronic warfare systems and precision guidance components. Backlog at year-end stood at $1.8 billion, a 21% increase from the prior fiscal year, indicating sustained demand and visibility into future revenue streams. Operating margins improved to 15.4% in the fourth quarter, up from 13.7% in the same period last year, driven by supply chain optimization and improved production efficiencies. The company deployed $86 million in capital expenditures during FY2025, focused on expanding manufacturing capacity in Texas and California to meet growing defense sector demand. Stock market reaction was positive, with AXTI shares rising 6.4% in after-hours trading following the earnings release. Defense sector peers LMT and RTX also saw modest gains, with LMT up 1.7% and RTX increasing 1.2%, reflecting broad investor confidence in the defense supply chain’s resilience.