Key Highlights

  • After its first quarter as an independent company and USD 1.1 billion of Debt repayment, Resideo (NYSE:REZI) gained 18.25% on November 11, 2026.
  • Mercury Systems posted record bookings of USD 370 million and a book-to-bill of 1.46, and drew an upgrade to Overweight.
  • AAON climbed 19.31% as net sales grew about 84% to a record USD 707.4 million, driven by Data Center cooling demand.
  • A record USD 4.67 billion Backlog sent Tetra Tech up about 8% after hours, while AEVEX added 11.49% after hours on a higher Revenue outlook.

1. Resideo (NYSE:REZI): Strong Balance Sheet, Short Order Book

Resideo (NYSE:REZI) gained 18.25% on November 11 following its first full quarter since the August 3 spin-off of ADI Global Distribution. Revenue grew 3% to USD 727 million, restrained by a 34% decline in OEM security sales, and sales without that shrinking line rose 6% to USD 694 million. Gross Margin of 40.4% marked the fourteenth consecutive quarter of year-on-year improvement. Standalone adjusted EBITDA increased 5% to USD 154 million and standalone adjusted Earnings came to USD 0.52 per share, while GAAP results took on about USD 30 million of separation costs. The biggest change was on the balance sheet. A USD 900 million Dividend from ADI plus roughly USD 200 million of cash retired USD 1.1 billion of debt, bringing gross debt to about USD 2.1 billion and trimming future interest costs. Guidance for 2026 is revenue of USD 2.927 billion to USD 2.947 billion and standalone adjusted earnings of USD 1.92 to USD 1.98 per share. Because Resideo sells home comfort, safety and security products through retail and professional channels, it carries no long backlog. Demand follows renovation and replacement activity, which higher Mortgage rates could dampen. Separation costs also explain why Operating Cash Flow is guided at just a minimum of USD 165 million this year.

2. Mercury Systems (NASDAQ:MRCY): Bookings Lead the Group

Mercury Systems (NASDAQ:MRCY) supplies processing, radio frequency and secure computing subsystems used in missiles, radars, aircraft and space platforms. Its fiscal first quarter did much to settle years of questions about execution. Adjusted earnings of USD 0.52 per share were twice the USD 0.26 consensus, revenue grew 12.4% to USD 253.2 million, and adjusted EBITDA surged 58.6% to USD 56 million, a margin of 22.3%. Bookings stood out, up 48% to a record USD 370 million, which gave a book-to-bill ratio of 1.46 and pushed backlog up about 45% to almost USD 2.1 billion. Management lifted its fiscal 2027 adjusted EBITDA view to roughly USD 210 million and expects revenue nearing USD 1.1 billion with double-digit growth. A large US research house upgraded the stock to Overweight and described the quarter as proof on margins. Closing figures for the move vary by source, one showing a gain of 5.7% and another close to 13%. Free cash flow was negative USD 24 million, which management linked to deliberate inventory purchases ahead of growth. Since fixed-price development contracts have hurt the company previously, margins above 20% and better cash generation are the tests for the remainder of the year.

3. AAON (NASDAQ:AAON): Data Center Cooling Demand

After third-quarter net sales rose about 84% to a record USD 707.4 million, AAON (NASDAQ:AAON) surged 19.31% on November 10, a session in which the S&P 500 fell 0.38%. Adjusted earnings of USD 0.83 per share topped the USD 0.56 consensus by about 48%, and gross margin hit 26.7% as higher volumes improved plant absorption. The 2026 outlook was raised. The stock has become one of the market's favoured routes into AI data center cooling. Its BASX Brand builds custom air handling and liquid cooling systems for hyperscale and colocation customers, and that unit is the main growth engine. BASX backlog was about 51% above the prior year yet roughly 5% below the previous quarter as large projects shipped. The key question is whether that sequential dip reflects delivery timing or an early hint of slower ordering. A fairly small group of data center customers drives growth, so project timing makes quarters uneven. The traditional rooftop and commercial HVAC Business responds to interest rates and construction activity, and both are under strain with Treasury yields near 5%. Fourth-quarter orders and the path of BASX backlog will show if the data center cycle is still speeding up.

4. Tetra Tech (NASDAQ:TTEK): Record Backlog, Federal Funding Exposure

On November 11, Tetra Tech (NASDAQ:TTEK) rose about 8% after hours, reversing a 7.48% decline in the regular session. The engineering and consulting firm reported a record backlog of USD 4.67 billion, 13% above a year earlier and more than USD 530 million higher. Recent awards include a USD 1.4 billion multiple-award agreement for NASA logistics, a USD 145 million Navy engineering contract and a USD 141 million water infrastructure assessment. Fourth-quarter adjusted earnings grew 9% to USD 0.49 per share, a little above forecasts, and fiscal 2026 delivered revenue of USD 5.08 billion, record earnings of USD 1.69 per share and adjusted EBITDA of USD 660 million. Guidance for fiscal 2027 is earnings of USD 1.65 to USD 1.80 per share on net revenue of USD 4.425 billion to USD 4.625 billion. A quarterly dividend increase of 11%, the 46th consecutive double-digit rise, came with USD 798 million still available on the buyback. Commercial and government clients are driving rising demand for water and environmental services. Federal funding is the risk. The company has absorbed the loss of foreign aid work, further budget disruption could delay contracts, and disaster response revenue varies from year to year.

5. AEVEX (NYSE:AVEX): Shifting Away From Ukraine

AEVEX (NYSE:AVEX), which makes unmanned aircraft and maritime drones, gained 11.49% after hours on November 11, following a 4.57% advance in the regular session. Revenue climbed 56.5% to USD 189.7 million and adjusted EBITDA reached USD 30.8 million, a margin of 16.2%. The 2026 revenue outlook moved up to USD 820 million to USD 840 million from USD 700 million to USD 720 million, with adjusted EBITDA guidance now USD 128 million to USD 132 million. Revenue quality improved as well. Core revenue of USD 137.2 million now exceeds Ukraine-related revenue of USD 52.5 million, down from USD 167.7 million in the first quarter, and broad US and allied programmes are generally viewed as more durable than wartime surge demand. The BlackSea Acquisition brought in a Maritime Systems segment. Funded backlog was USD 444.3 million, book-to-bill was about 1.3 and the pipeline was USD 16.6 billion. Management said funded backlog covers around 96% of the guidance midpoint, and it announced a US contract vehicle worth almost USD 400 million. A higher tax provision contributed to a net loss of USD 16.8 million. Since Ukraine revenue will keep falling, the core business has to keep scaling to Fill the gap.

Where Things Stand

Among the top 5 industrial and defense beats, Mercury Systems offers the clearest order visibility, since record bookings of USD 370 million, a book-to-bill of 1.46 and a backlog near USD 2.1 billion back its higher outlook. AEVEX and Tetra Tech also show solid backlog coverage, AAON's order book is large but slipped from the previous quarter, and Resideo has no long backlog and relies on housing activity. Higher interest rates and the timing of federal budgets are risks shared by the group while defense and infrastructure spending stays elevated.