Pro-Dex, Inc. Announces Acquisition of Advanced Precision Machining
Rhea-AI Summary
Pro-Dex (NasdaqCM: PDEX) completed the acquisition of Advanced Precision Machining LLC (APM) on February 9, 2026. APM is a Costa Mesa manufacturing facility producing machined sub-assemblies and aerospace/defense parts, and holds ITAR and JCP registrations.
The company said APM will operate independently and that the length of APM's accounting close may shift consolidated reporting timing closer to SEC deadlines. Management cited a contract extension with its largest customer and expects revenue growth and potential manufacturing efficiencies from APM's automation.
Positive
- Acquisition of APM completed on February 9, 2026
- APM holds ITAR and JCP certifications
- Company expects revenue growth tied to largest-customer contract extension
- APM supplies aerospace/defense parts and Pro-Dex sub-assemblies
Negative
- APM accounting close may delay consolidated reporting timing
- Integration will maintain APM as an independent operation, slowing consolidation benefits
Market Reaction
Following this news, PDEX has gained 5.01%, reflecting a notable positive market reaction. The stock is currently trading at $40.00. This price movement has added approximately $6M to the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
PDEX gained 1.88% while tracked peers showed mixed moves (e.g., ZJYL up 7.58%, KRMD down 2.56%). Only one peer (MBOT) appeared on the momentum scanner, suggesting today’s move is more stock-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Q2 FY26 earnings | Positive | -0.4% | Reported higher Q2 and six‑month sales and income with contract extension plans. |
| Dec 19 | Contract extension | Positive | -8.3% | Extended largest customer contract through 2028 with minimum purchase volumes. |
| Oct 30 | Q1 FY26 earnings | Positive | -0.3% | Strong Q1 sales growth and higher net income aided by investment gains. |
| Oct 16 | Symbol clarification | Neutral | -4.8% | Clarified no affiliation between PDEX stock and unrelated crypto entity. |
| Sep 04 | FY25 results | Positive | -16.5% | Reported 24% annual sales growth and sharply higher net income with strong backlog. |
Recent positive operational and contract news often coincided with negative next-day price reactions, indicating a pattern of selling into good news.
Over the past six months, Pro-Dex reported stronger results and backlog, highlighted by fiscal 2025 full-year net sales of $66.6M and net income of $9.0M, followed by fiscal 2026 Q1 and Q2 growth. A key contract with its largest customer was extended through December 31, 2028, and management referenced plans to acquire a local machine shop to secure capacity. Today’s APM acquisition follows through on those capacity-expansion plans and ties directly to that contract-driven growth strategy.
Market Pulse Summary
The stock is up +5.0% following this news. A strong positive reaction aligns with Pro-Dex’s strategy of expanding capacity following its contract extension with its largest customer. The acquisition of APM formalized a long‑standing supplier relationship and added aerospace and defense exposure. However, recent history shows several cases where positive news was followed by selling, with prior strong updates seeing declines of up to 16.51%. Investors may weigh integration execution risks and concentration with the largest customer when assessing sustainability.
Key Terms
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AI-generated analysis. Not financial advice.
IRVINE, CA / ACCESS Newswire / February 12, 2026 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced that on February 9, 2026 it completed its acquisition of Advanced Precision Machining LLC, ("APM"), formerly operated as Advanced Precision Machining, Inc., a manufacturing facility located in Costa Mesa, Calif. APM manufactures several of our machined sub-assemblies and also produces parts and assemblies for aerospace and defense systems. In addition, it serves as a Prime Contractor for the U.S. Government and therefore maintains registrations under the International Traffic in Arms Regulations ("ITAR") as well as a Joint Certification Program ("JCP") certification. We anticipate that we will operate APM independently of Pro-Dex and therefore, due to the length of their accounting close, we anticipate that our future consolidated results of operations will likely be announced closer to or on our statutory Securities and Exchange Commission deadlines.
"We are excited that APM is joining the Pro-Dex family," said Rick Van Kirk, President and CEO of Pro-Dex. "APM has been a quality supplier of ours for several decades and we look forward to applying some of APM's leading edge automation and technology to streamline our manufacturing and assembly operations in Irvine."
Mr. Van Kirk continued, "This transaction is part of our expansion plans based upon the recently announced contract extension with our largest customer and resultant expectant revenue growth. Additionally, we anticipate maintaining and expanding APM's business with other industries."
About Pro-Dex, Inc.:
Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions that appeal to our customers, primarily medical device distributors. Additionally, we provide engineering, quality, and regulatory consulting services to our customers. We also manufacture and sell rotary air motors to a wide range of industries; however, these motors comprise a de minimis portion of our business. For more information, visit the Company's website at www.pro-dex.com.
Statements herein concerning the Company's plans, growth and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments and future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future (including, without limitation, expected revenue growth and the ability maintain and expand APM's business), are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. The risks included above are not exhaustive. For a more detailed description of risks associated with the Company, interested parties should refer to the risk factors and other disclosures concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.
Contact: Richard L. Van Kirk, Chief Executive Officer
(949) 769-3200
SOURCE: Pro-Dex, Inc.
View the original press release on ACCESS Newswire
FAQ
When did Pro-Dex (PDEX) complete the acquisition of Advanced Precision Machining?
How will the APM acquisition affect Pro-Dex (PDEX) consolidated reporting?
Does APM hold government manufacturing certifications relevant to Pro-Dex (PDEX)?
What strategic benefits did Pro-Dex (PDEX) cite for buying APM?
Will APM continue operating under Pro-Dex (PDEX) management structure?
What products and markets does APM serve relevant to Pro-Dex (PDEX)?
