Core Viewpoint - AeroVironment's stock price is projected to reach new highs this year, supported by strong Q4 results and positive guidance, indicating a bullish market sentiment [1][2]. Financial Performance - AeroVironment reported a nearly 40% year-over-year revenue growth in Q4, with significant contributions from various segments: Loitering Munitions Systems grew by 87%, MacReady Works by 24%, and Uncrewed Systems by 8% [6]. - The company's income from operations, net income, adjusted EBITDA, and adjusted EPS all more than doubled, with adjusted EBITDA and EPS growing more than 3x and 4x, respectively [7]. Market Guidance - The guidance for FY2026 anticipates robust growth, driven by the acquisition of BlueHalo, a defense contractor focused on advanced automated systems, with expected revenue growth exceeding 135% [8]. - Bookings reached record levels in FY2025, surpassing $1.2 billion, and are expected to continue accelerating due to increased demand for automated systems amid geopolitical tensions [9]. Analyst Sentiment - Analysts have shown a bullish sentiment towards AeroVironment, with upgrades and price target increases leading up to the release, and a positive report from Stifel highlighting the company's position in next-gen defense technology [3][4]. - The stock's price forecast ranges from a low of $190 to a high of $245, with an average target of $213, indicating potential for further price appreciation [10]. Institutional Support - Institutional ownership exceeds 85%, with strong buying activity noted in Q1 and Q2 of 2025, contributing to a robust support base for the stock [10]. - Short interest reached nearly 15% ahead of the report, with short-covering contributing to the stock's price rise [10].

Core Insights - The article discusses the expertise of a DevOps Engineer specializing in AI tools and applications, highlighting their deep knowledge in generative AI systems and machine learning algorithms [1] - The engineer is pursuing advanced AWS machine learning certifications to enhance their expertise in AI and machine learning [1] - The engineer contributes insights on AI and machine learning through an investment-focused lens on Seeking Alpha [1] Group 1 - The engineer works for a major subsidiary of a large-cap Fortune 500 company, indicating a strong corporate backing and resources [1] - The engineer ranks 792 out of 31,393 financial bloggers and 1,308 out of 41,021 experts according to TipRanks, showcasing their credibility and recognition in the field [1] - The engineer has no current stock or derivative positions in any mentioned companies, ensuring an unbiased perspective in their analysis [1]

Core Insights - AeroVironment, Inc. (NASDAQ:AVAV) has seen a significant stock increase of 27%, trading at $244.55, following strong fourth-quarter earnings of $1.61 per share and $275 million in revenue, both surpassing analyst expectations [1] - The stock is on track for its best single-session gain since March 2024, reaching a record high of $250, and has increased 56% in 2025, with a 139% rise from its 19-month low of $102.25 [2] Short Interest and Trading Activity - A short squeeze may support the stock's upward momentum, with short interest rising nearly 20%, accounting for 10.1% of the total float, and it would take over eight trading days for shorts to cover their positions at the current trading pace [3] - Options traders are leaning bearish, indicated by a put/call open interest ratio of 1.05, which is in the 88th percentile of the past month, and a 10-day put/call volume ratio ranking in the 83rd percentile of its annual range [4] Volatility and Options Trading - The stock has consistently exceeded options traders' volatility expectations, reflected in a Schaeffer's Volatility Scorecard (SVS) score of 96 out of 100, indicating a history of larger-than-expected price swings [5]

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Financial Performance & Guidance - The company enters fiscal year 2026 with a backlog exceeding $750 million [1] - Revenue guidance for fiscal year 2026 is set between $19 billion and $2 billion [1] - The company delivered over 40% quarter-over-quarter growth in topline revenue from last year's fourth quarter to this year's fourth quarter [1] - The company's Q4 revenue was $275 million [5] - The company's total revenue is less than $1 billion [5] Strategic Focus & Market Positioning - The company is purpose-built for US national security and its allies' critical strategic priorities [2] - The company is identified as a primary drone company [3] - The company possesses counter-drone technology, including a laser system [3][7] - The company acquired Blue Halo for $4 billion, indicating a strategy of industry consolidation [4] - The company's counter-drone laser technology is positioned as a cost-effective solution compared to traditional counter-drone measures [7][8]

Core Viewpoint - AeroVironment's stock surged over 20% following the release of its fourth-quarter financial results, which exceeded analyst expectations on both revenue and earnings [1][4]. Financial Performance - The company achieved record fiscal year revenue of $820.6 million, representing a 14% increase compared to the previous period [1]. - For the fourth quarter, AeroVironment reported a net income of $16.66 million, or 59 cents per share, a significant rise from $6.05 million, or 22 cents per share, in the same quarter last year [2]. - Adjusted earnings per share were reported at $1.61, surpassing the expected $1.39 per share [4]. - Revenue for the fourth quarter was $275 million, exceeding the anticipated $242 million [4].

Core Insights - The company achieved record total revenue of $821 million for FY2025, a 14% increase year-over-year, with Q4 revenue reaching $275 million, up 40% compared to the previous year [4][19][37] - Total bookings for FY2025 amounted to $1.2 billion, indicating strong demand for the company's core offerings [4][15] - The funded backlog at the end of FY2025 was $726 million, an 82% increase from the prior fiscal year [4][15] - The company secured a nearly $1 billion five-year U.S. Army IDIQ sole-source contract, marking the largest contract in its history [4][6] - International revenue accounted for 52% of total revenue in FY2025, with non-Ukraine European customers contributing over 24% [4][20] Financial Performance - Adjusted EBITDA for Q4 FY2025 was $61.6 million, significantly up from $22.2 million in the same quarter last year, and $146.4 million for the full fiscal year, representing 17.8% of revenue [4][22] - GAAP net income for Q4 FY2025 was $16.7 million, an increase of $10.6 million year-over-year, while full-year GAAP net income was $43.6 million, down $16 million due to various impairments and costs [5][28] - Adjusted EPS for Q4 FY2025 was $1.61, compared to $0.43 for the same period in FY2024 [8][28] Segment Performance - Loitering Munitions Systems (LMS) revenue rose 87% to $138 million in Q4 FY2025 and 83% to $352 million for the full fiscal year [4][17] - The UXS segment reported Q4 revenue of $113 million, a nearly 9% increase, while full-year revenue was slightly lower at $382 million [4][17] - McCready Works segment revenue increased 24% to $24 million in Q4 FY2025, with full-year revenue at $87 million, a 14% increase [4][17] Strategic Initiatives - The company closed the acquisition of Blue Halo, enhancing its position in the defense technology sector with a comprehensive portfolio across multiple domains [15][38] - FY2026 revenue guidance is set between $1.9 billion and $2 billion, with adjusted EBITDA expected to be between $300 million and $320 million [8][33] - The company plans to operate under two distinct business segments starting in FY2026: Autonomous Systems and Space Cyber Directed Energy [18][31] Market Outlook - The company anticipates strong organic growth driven by increased demand for its innovative solutions, particularly in the U.S. Department of Defense sector [6][9] - The P550 and Red Dragon products are expected to generate significant revenue in the coming years, with initial orders anticipated soon [9][53] - The company is well-positioned to capitalize on emerging global defense priorities, with a focus on delivering next-generation solutions [18][39]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended April 30, 2025 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-33261 AEROVIRONMENT, INC. (Exact name of registrant as specified in its charter) | Delaware | 95-2705790 | | --- | --- | | (State or ...

Company Performance - AeroVironment reported quarterly earnings of $1.61 per share, exceeding the Zacks Consensus Estimate of $1.44 per share, and significantly up from $0.43 per share a year ago, representing an earnings surprise of +11.81% [1] - The company posted revenues of $275.05 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 12.88%, compared to $196.98 million in the same quarter last year [2] - Over the last four quarters, AeroVironment has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - AeroVironment shares have increased approximately 24.3% since the beginning of the year, outperforming the S&P 500's gain of 2.4% [3] - The current consensus EPS estimate for the upcoming quarter is $1.41 on revenues of $285.78 million, and for the current fiscal year, it is $4.13 on revenues of $995.41 million [7] Industry Outlook - The Aerospace - Defense Equipment industry, to which AeroVironment belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially impact stock performance [5][8]

Financial Data and Key Metrics Changes - The company achieved record fiscal year revenue of $821 million, which is 14% higher than the prior year period, and record fourth quarter revenues of $275 million, which is 40% higher than the prior year period [7][38] - The total bookings for fiscal year 2025 reached $1.2 billion, indicating robust demand for the company's solutions [7][39] - The funded backlog at the end of fiscal year 2025 was $726 million, which is 82% higher than the prior fiscal year [7][39] - Adjusted EBITDA for Q4 was $61.6 million, up from $22.2 million in the previous year, driven by higher revenue and gross margins [24] - Full year adjusted EBITDA was $146.4 million, representing 17.8% of revenue, a 15% increase over FY 2024 [24] Business Segment Data and Key Metrics Changes - The Loitering Munition Systems (LMS) segment saw revenues for Q4 rise 87% to $138 million, with full fiscal year revenues of $352 million, an 83% increase [11] - The Uncrewed Systems (UXS) segment posted Q4 revenues of $113 million, a nearly 9% increase year-over-year, while full year revenues were slightly lower at $382 million [12] - The McCready Works segment reported Q4 revenues of $24 million, a 24% increase, with full year revenues of $87 million, which was 14% higher than the prior year [16] Market Data and Key Metrics Changes - 52% of the company's revenues were from international customers, with over 24% coming from non-Ukraine European customers [23] - The company received orders from eight countries for Switchblade products worth nearly $250 million in FY 2025 [23] Company Strategy and Development Direction - The company closed the acquisition of BlueHalo, enhancing its position as a defense tech leader with a comprehensive portfolio across air, land, sea, space, and cyber [7][39] - Starting in fiscal year 2026, the company will operate under two distinct business segments: Autonomous Systems and Space, Cyber, and Directed Energy [18][32] - The company plans to continue investing in R&D, having invested nearly $2 billion over the past decade to develop disruptive solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to meet rising demands from the U.S. Department of Defense and its allies, particularly in loitering munitions and autonomous systems [49][90] - The company anticipates strong organic growth in fiscal year 2026 and beyond, with revenue guidance set between $1.9 billion and $2 billion [7][39] Other Important Information - The company expects adjusted gross margins in the range of 29% to 31% for fiscal year 2026 [34] - The company plans to invest in expanding its manufacturing capacity to meet increased demand for its products [12][63] Q&A Session Summary Question: Discussion on Army's transformation initiative and its impact on Switchblade orders - Management highlighted the strong growth in the Switchblade business and expressed optimism about additional opportunities stemming from the Army's modernization efforts [45][49] Question: Inquiry about write-downs in unfunded backlog related to foreign military sales - Management confirmed there were no write-downs related to the LMS business or foreign military sales in the quarter [52][53] Question: Market opportunity for P550 and Red Dragon - Management indicated strong market potential for both products, with expectations for initial orders and significant future revenue generation [61][64] Question: Clarification on revenue guidance and visibility - Management explained that the guidance reflects a range of potential outcomes based on timing of contracts and funding approvals from the U.S. Department of Defense [74][86] Question: Assessment of NATO's potential 5% GDP spending pledge - Management noted that increased international demand for their systems is expected, particularly in Europe, due to ongoing global security challenges [105]