AeroVironment, Inc. (NASDAQ: AVAV) Q4 2025 Earnings | 06/25/2025

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AI Summary

Here's a summary of the AeroVironment Q4 2025 earnings call:

Key Highlights:

Record Results: AeroVironment (AV) reported record fourth-quarter and full-year results, exceeding expectations.
Revenue Growth: Fiscal year 2025 revenue reached $821 million (up 14%), with Q4 revenue at $275 million (up 40%).
Strong Bookings: The company secured $1.2 billion in total bookings for fiscal year 2025.
Backlog: Funded backlog at the end of fiscal year 2025 was $726 million, an 82% increase year-over-year.
Acquisition: AV completed the acquisition of Blue Halo, expanding its portfolio across air, land, sea, space, and cyber domains.
New Products: Three new products were launched: P550, Jump 20X, and Red Dragon.
Switchblade Demand: International demand for Switchblade products is strong, with orders from eight countries.
Future Guidance: Fiscal year 2026 revenue is projected between $1.9 billion and $2 billion.

Financial Performance:

Loitering Munition Systems (LMS) revenue increased significantly, with a large contract award for Switchblade products.
Unmanned Systems (UXS) segment revenue also showed growth, driven by PUMA and Jump 20 products.
Adjusted EBITDA for Q4 was $61.6 million, and for the full year, it was $146.4 million (17.8% of revenue).
Adjusted gross margins were slightly lower compared to the previous year due to service mix.
R&D spending was 12% of total revenue.

Strategic Updates:

AV is well-positioned to benefit from increased defense spending and is aligned with U.S. Department of Defense priorities.
The company is expanding manufacturing capacity to meet rising demand.
Starting in fiscal year 2026, AV will operate under two segments: Autonomous Systems (AXS) and Space, Cyber, and Directed Energy (SCDE).

Fiscal Year 2026 Guidance:

Revenue: $1.9 billion to $2 billion.
Adjusted EBITDA: $300 million to $320 million.
Non-GAAP Adjusted EPS: $2.80 to $3.00.
Adjusted Gross Margins: 29% to 31%.
R&D Spend: 6% to 7% of revenue.
Blue Halo deal integration expenses: $40 million to $45 million.

Key Discussion Points from Q&A:

The U.S. Army's transformation initiative and its potential impact on AV's business.
The strong foreign military sales pipeline.
The market opportunities for P550 and Red Dragon.
Revenue and cost synergies related to the Blue Halo acquisition.
Visibility into fiscal year 2026 revenue.
Capital expenditure plans.

About this video

AeroVironment, Inc. (NASDAQ: AVAV), a leader in unmanned and robotic defense systems, reported record Q4 2025 results on 06/25/2025. Quarterly revenue surged 40% year-over-year to $275.1 million, significantly beating analyst estimates and driven by robust sales in the Loitering Munition Systems segment. Adjusted earnings per share (EPS) for the quarter reached $1.61, up 274% from $0.43 in Q4 FY2024 and exceeding forecasts by 15%. Non-GAAP adjusted EBITDA for Q4 was $61.6 million, a 178% year-over-year increase. For the full fiscal year, AeroVironment delivered revenue of $821 million, up 14% from the prior year, with total bookings reaching $1.2 billion and a funded backlog of $726 million—an 82% increase year-over-year. Fiscal year adjusted EBITDA rose 15% to $146.4 million, and net income was $43.6 million. The company ended Q4 with $72.5 million in cash and investments. CEO Wahid Nawabi highlighted the successful launch of three new products and the strategic BlueHalo acquisition, which closed after quarter-end and is expected to further strengthen AeroVironment’s defense technology portfolio. Looking ahead, management issued strong FY2026 guidance: revenue between $1.9 billion and $2.0 billion, and adjusted EBITDA of $300–$320 million. Despite the earnings beat and positive outlook, shares dipped post-announcement, reflecting high investor expectations and recent market volatility. Outlook: FY2026 revenue guidance: $1.9–$2.0 billion Adjusted EBITDA guidance: $300–$320 million Continued focus on innovation, integration of BlueHalo, and expanding defense and autonomous systems offerings About Inside Ticker: For more expert analysis and real-time updates on AeroVironment, Inc. (NASDAQ: AVAV) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #AeroVironment #AVAV #Q42025 #Earnings #Defense #Drones #FinancialResults #BlueHalo #InsideTicker

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