AeroVironment (AVAV) Q4 2025 Earnings
How Did AVAV Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: +5.00%.
Did AVAV Beat Earnings? Q4 2025 Results
Yes. AeroVironment reported Q4 2025 earnings of $1.61 a share on Jun 24, 2025, beating the $1.41 consensus estimate by 13.9%. Revenue was $275.1M against a $242.7M estimate.
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
What Was AeroVironment's Outlook in Q4 2025?
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
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $275.1M | $197.0M | +39.6% |
| Gross Profit | $100.3M | $75.6M | +32.7% |
| Operating Income | $13.8M | $5.9M | +132.4% |
| Net Income | $16.7M | $6.0M | +175.6% |
AVAV Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.