AeroVironment Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.00%.
Did AVAV Beat Earnings? Q4 2025 Results
AeroVironment closed fiscal Q4 2025 with a convincing beat on both the top and bottom lines, as the drone and munitions maker reported earnings per share of $1.61 against a consensus estimate of $1.39 — a 15.83% positive surprise — while revenue of $275.05 million topped expectations by 13.85% and rose 39.6% year-over-year. The primary engine behind those results was an 87% surge in Loitering Munition Systems revenue, with the Switchblade product line fueling record full-year bookings of $1.20 billion and driving unfunded backlog up 472% to $774.60 million. The strong operating performance, however, was partially offset by an $18.36 million goodwill impairment and $4.60 million in accelerated amortization tied to the Uncrewed Ground Vehicle unit, which together clipped GAAP EPS by $0.65. The transformational BlueHalo acquisition, which closed May 1, 2025, reshapes the company's scale entirely, with <a href="https://247wallst.com/investing/2025/12/10/aerovironment-posts-record-revenue-but-swings-to-67-million-loss-on-integration-costs/">FY26 guidance reflecting the combined entity</a> at $1.90 billion to $2.00 billion in revenue and non-GAAP EPS of $2.80 to $3.00, though investors have grown cautious about dilution from the $1.35 billion capital raise accompanying the deal.
- 87% year-over-year growth in Loitering Munition Systems revenue driven by strong product sales
- Record fiscal year bookings of $1.2 billion reflecting significantly higher demand
- Higher product sales of $77.6 million driving Q4 revenue growth
- Decrease in R&D expense of $10.2 million contributing to operating income improvement
- Multiple Switchblade orders driving unfunded backlog growth of 472%
“AeroVironment finished out fiscal year 2025 with a remarkable fourth quarter, which included record revenue, significantly higher profits and a robust backlog nearly double that from fiscal year 2024. The investments we've consistently made in our multi-generational Uncrewed Systems and Loitering Munition Systems products coupled with our strong execution, continue to pay off, as evidenced by significantly higher demand and key strategic wins leading to a record $1.2 billion in total bookings throughout this fiscal year.”
AeroVironment CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, inclusive of the BlueHalo acquisition which closed May 1, 2025, AeroVironment expects revenue of $1.9 billion to $2.0 billion, non-GAAP adjusted EBITDA of $300 million to $320 million (~16% margin at midpoint), and non-GAAP earnings per diluted share of $2.80 to $3.00. Revenue seasonality is expected at 45% first half / 55% second half. EBITDA margins are expected to trend from 10-12% in Q1 to high teens by Q4. Adjusted gross margins are guided at 29-31%, IRAD at 6-7%, and SG&A at 11-13%. Deal and integration expenses are expected at $40-$45 million, with capital expenditures at 6-8% of revenue. The company has approximately 70% revenue visibility based on backlog and quarter-to-date bookings.
AVAV YoY Financials
AVAV Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.