<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549
                                ______________

                                   FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the quarterly period ended   September 30, 1996
                               --------------------

                                      OR
                                        
[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period _____________ to _______________


                       Commission file number:  0-14275
                                                -------

                         Edac Technologies Corporation
                         -----------------------------
            (Exact name of registrant as specified in its charter)

            Wisconsin                                   39-1515599
            ---------                                   ----------
(State or other jurisdiction of                         (I.R.S. employer
incorporation or organization)                          Identification No.)

                1790 New Britain Avenue, Farmington, CT   06032
                -----------------------------------------------
                   (Address of principal executive offices)

                                (860) 677-2603
                                --------------
             (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15 (d) of the Securities' Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes  X    No ____
                                               ---           

APPLICABLE ONLY TO CORPORATE ISSUERS:

     On November 11, 1996 there were outstanding 3,732,207 shares of the
Registrant's Common Stock, $0.0025 par value per share.
<PAGE>
 
                         EDAC TECHNOLOGIES CORPORATION
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
                                Three Months Ended                           Nine Months Ended
                                  September 30                                  September 30   
                           --------------------------                ----------------------------------
                               1996          1995                          1996             1995      
                           ------------  ------------                  ------------  ------------------
<S>                        <C>           <C>                           <C>           <C>              
Sales                       $6,775,601    $6,273,982                   $22,831,305         $19,932,686
Cost of sales                5,972,195     5,554,174                    20,222,420          17,641,417
                            ----------    ----------                   -----------         -----------
                               803,406       719,808                     2,608,885           2,291,269
                                                                                                      
Selling, general and                                                                                  
  and administrative                                                                                  
  expenses                     679,606       615,203                     1,998,476           1,874,179
                                                                                                      
INCOME FROM OPERATIONS         123,800       104,605                       610,409             417,090
                                                                                                      
Non-operating income                                                                                  
  (expense):                                                                                          
      Interest expense        (195,867)     (176,402)                     (609,863)           (431,926)
      Other                     20,422        25,567                        29,132              34,496
                            ----------    ----------                   -----------         -----------
                              (175,445)     (150,835)                     (580,731)           (397,430)
                                                                                                      
INCOME (LOSS) BEFORE                                                                                  
INCOME TAXES                   (51,645)      (46,230)                       29,678              19,660
                                                                                                      
Income tax expense                                                                                    
  (benefit)                          0             0                             0               4,900
                            ----------    ----------                   -----------         -----------

NET INCOME (LOSS)           $  (51,645)   $  (46,230)                  $    29,678         $    14,760
                            ==========    ==========                   ===========         ===========
                                                                                                      
Weighted average number                                                                               
  of shares of common                                                                                 
  shares and equivalent                                                                               
  shares outstanding         3,780,525     3,787,023                     3,778,214           3,780,145
                                                                                                      
Net income (loss)                                                                                     
per share                   $    (0.01)   $    (0.01)                  $      0.01         $      0.00
                            ==========    ==========                   ===========         =========== 
</TABLE>

The accompanying notes are an integral part of these financial statements.
<PAGE>
 
                         PART 1 FINANCIAL INFORMATION
                         ITEM 1  FINANCIAL STATEMENTS

                         EDAC TECHNOLOGIES CORPORATION
                     CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                        September 30    December 31
                                            1996           1995
                                         (Unaudited)      (Note)
                                        -------------  -------------
<S>                                     <C>            <C>
ASSETS
------
 
CURRENT ASSETS:
  Cash                                   $   187,024    $   158,077
  Trade accounts receivable                2,656,828      1,650,840
  Refundable income taxes                     22,877        106,000
  Inventories
   Finished goods                          1,041,699        935,825
   Work in process and raw materials       7,047,094     10,344,212
 
  Prepaid expenses and other                 111,921        103,197
  Deferred income taxes                      917,000        917,000
                                         -----------    -----------
       TOTAL CURRENT ASSETS               11,984,443     14,215,151
 
 
PROPERTY, PLANT, AND EQUIPMENT            13,032,097     12,733,254
 less-accumulated depreciation             7,436,747      6,850,794
                                         -----------    -----------
                                           5,595,350      5,882,460
 
OTHER ASSETS                                 248,863        254,519
                                         -----------    -----------
 
                                         $17,828,656    $20,352,130
                                         ===========    ===========
 </TABLE>


Note:  The balance sheet at December 31, 1995 has been derived from the audited
financial statements at that date.

The accompanying notes are an integral part of these financial statements.
<PAGE>
 
                         EDAC TECHNOLOGIES CORPORATION
                     CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                            September 30   December 31
                                                1996           1995
                                             (Unaudited)      (Note)
                                            -------------  ------------
<S>                                         <C>            <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
 
CURRENT LIABILITIES:
  Revolving line of credit                   $ 3,418,916   $ 4,651,484
  Current portion of long-term debt            4,506,954       387,366
  Trade accounts payable                       1,716,324     2,730,256
  Employee compensation and
      amounts withheld                           577,414       613,815
  Accrued expenses                               711,509       783,561
                                             -----------   -----------
 
      TOTAL CURRENT LIABILITIES               10,931,117     9,166,482
 
LONG-TERM DEBT,
  less current portion                           500,525     4,919,019
 
OTHER LIABILITIES                                 18,000        18,000
 
DEFERRED INCOME TAXES                            917,000       917,000
 
SHAREHOLDERS' EQUITY:
  Common stock, par value $.0025 per
    share; 10,000,000 shares authorized;
    issued and outstanding--3,728,873
    in 1996 and 3,653,540 in 1995                  9,322         9,134
  Additional paid-in-capital                   8,635,338     8,593,152
  Accumulated deficit                         (2,968,757)   (2,998,435)
                                             -----------   -----------
                                               5,675,903     5,603,851
 
  Less guaranty of Employee Stock
    Ownership Plan debt                         (213,889)     (272,222)
                                             -----------   -----------
                                               5,462,014     5,331,629
 
                                             $17,828,656   $20,352,130
                                             ===========    ==========
</TABLE> 

Note:  The balance sheet at December 31, 1995 has been derived from the audited
financial statements at that date.

The accompanying notes are an integral part of these financial statements.
<PAGE>
 
                         EDAC TECHNOLOGIES CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                               Nine Months Ended
                                                 September 30
                                       --------------------------------
                                           1996                1995
                                       ------------        ------------
<S>                                    <C>                 <C>

Operating Activities:
  Net income                           $    29,678         $    14,760
  Depreciation and amortization            651,441             812,086
  Changes in working capital items       1,137,271          (1,841,560)
  Other                                     (9,000)             (8,488)
                                       -----------         -----------
    Net cash provided by (used in)
     operating activities                1,809,390          (1,023,202)

Investing Activities:
  Additions to property, plant
    and equipment                         (313,843)         (2,914,604)
  Proceeds from sales of property
    plant and equipment                     22,500             188,155
  Other                                          -             146,058
                                       -----------         -----------
    Net cash used in investing
     activities                           (291,343)         (2,580,391)


Financing Activities:
  Increase (decrease) in revolving
    line of credit                      (1,232,568)          2,462,386
  Payments of long term debt              (298,906)           (182,633)
  Advance on construction loan                   -             915,411
  Issuance of long-term debt                     -             461,846
  Proceeds from exercise of options
    for common stock                        42,374              25,312
                                       -----------         -----------

Net cash provided by (used in)
     investing activities               (1,489,100)          3,682,322

Increase in cash                            28,947              78,729
Cash at the beginning of year              158,077              86,260
                                       -----------         -----------

Cash at end of period                  $   187,024         $   164,989
                                       ===========         ===========
</TABLE>

The accompanying notes are an integral part of these financial statements.
<PAGE>
 
EDAC TECHNOLOGIES CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 1996

NOTE A -- BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with the generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals and adjustments to previously established loss
provisions) considered necessary for a fair presentation have been included.
Operating results for the nine month period ending September 30, 1996 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 1996. For further information, refer to the financial statements
and footnotes thereto included in the Company's annual report on Form 10-K for
the year ended December 31, 1995.
<PAGE>
 
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
---------------------------------------------

Sales.  The Company's sales increased $501,619 or 8.0% for the three months and
------                                                                         
$2,898,619 or 14.5% for the nine months ended September 30, 1996 compared to the
comparable periods of 1995. These increases are mainly due to significant
increases in large turning, spindle and design sales over the prior year.

Cost of Sales.  Cost of sales as a percent of total sales for the three and nine
--------------                                                              
month periods ended September 30, 1996 were 88.1% and 88.6% compared to 88.6%
and 88.5% for the comparable three and nine month periods ended September 30,
1995. This reduction for the three months is due to the higher absorption of
fixed overhead expenses resulting from the significant increase in sales. The
slight increase in the nine month percentage is due to an increase in the
Company's accrual for loss jobs in the first quarter.

Selling, General & Administrative.  Selling, general and administrative costs
----------------------------------                                           
increased $124,297 or 6.6% for the nine month period ended September 30, 1996
compared to the comparable period in 1995. The increase is due primarily to
increased personnel cost offset somewhat by reduced travel expenses.

Interest.  Interest expense for the nine months ended September 30, 1996 was
---------                                                                   
$609,863, an increase of $177,937 from the comparable period of 1995. The higher
interest cost is due to borrowings made during the latter part 1995 for the
construction of the Company's new building and for the purchase of additional
machinery. Additionally, interest rates charged by the Company's bank are higher
in 1996 than they were in 1995. (Reference the Company's 1995 Annual Report).

Liquidity and Capital Expenditures.  The Company's Revolving Loan and Security 
-----------------------------------                                           
Agreement (The Agreement) provides for a five-year term note in the amount of 
$1,000,000 ($950,000 at September 30, 1996) and a five-year term note in the 
amount of $4,000,000 ($3,418,303 at September 30, 1996).  Because the Agreement 
matures on March 31, 1997, the Company has, in accordance with generally
accepted accounting principles, classified the notes under this agreement as
current obligations. The Company intends and believes it has the ability to
refinance these obligations on a long term basis and has commenced discussions
with its current bank and with other financial sources to do so. Because of this
classification, working capital has decreased by $3,995,343 since December 31,
1995. Capital expenditures of $313,843 for the nine months ended September 30,
1996 were funded out of operating activities.

Management believes that the funds generated from operations and its credit
facilities will be sufficient to meet the Company's cash requirements for 1996.
<PAGE>
 
                         PART 11 -- OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits

     (11)  Statement re: computation of earnings per share

(b)  Reports on Form 8-K

     None
<PAGE>
 
                                  SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                             EDAC TECHNOLOGIES CORPORATION


November 11, 1996                            By /s/  Glenn L. Purple
                                                --------------------------------
                                             Glenn L. Purple,
                                             Chief Financial Officer and duly
                                             authorized officer
<PAGE>
 
                                 EXHIBIT INDEX

<TABLE> 
<CAPTION> 
                                                               Page Number 
                                                               in Sequential
NUMBER              DESCRIPTION                                Numbering System
------              -----------                                ----------------
<S>          <C>                                               <C> 
11           Statement Regarding Computation of
             Per Share Earnings

27           Financial Data Schedule
</TABLE>