AeroVironment(AVAV) - 2025 Q2 - Quarterly Results

Financial Performance - Record second quarter revenue of $188.5 million, up 4% year-over-year from $180.8 million[3] - Net income for the second quarter was $7.5 million, or $0.27 per diluted share, compared to $17.8 million, or $0.66 per diluted share in the prior-year period[9] - Non-GAAP adjusted EBITDA for the second quarter was $25.9 million, down from $39.5 million in the same period last year[10] - Income from operations for the second quarter was $7.0 million, down from $25.2 million in the prior-year period[6] - Net income for the three months ended October 26, 2024, was $7.543 million, a decrease of 57.7% compared to $17.840 million for the same period last year[32] - Basic net income per share for the three months ended October 26, 2024, was $0.27, down from $0.66 in the same period last year, representing a decline of 59.1%[32] - Net income for the six months ended October 26, 2024, was $28.7 million, a decrease of 27.8% from $39.7 million for the same period in 2023[37] Revenue Segments - Revenue growth in Loitering Munitions Systems segment was 157%, while UnCrewed Systems segment saw a decrease of 35% year-over-year[4] - Product sales for the three months ended October 26, 2024, were $151.231 million, a 3.2% increase from $145.779 million for the same period last year[32] - Contract services revenue for the six months ended October 26, 2024, was $188.458 million, compared to $180.816 million for the same period last year, reflecting a 3.6% increase[32] - Total revenue for the three months ended October 26, 2024, was $188.5 million, compared to $180.8 million for the same period in 2023, representing a growth of 4.6%[40] Margins and Expenses - Gross margin for the second quarter decreased to 39% from 42%, reflecting a decrease in product gross margin[5] - Gross margin for product sales was $64.179 million for the three months ended October 26, 2024, down from $66.747 million in the same period last year, indicating a decrease of 3.9%[32] - Research and development expenses for the three months ended October 26, 2024, were $28.716 million, up from $22.025 million in the same period last year, reflecting a 30.3% increase[32] - Selling, general and administrative expenses for the three months ended October 26, 2024, were $37.916 million, compared to $28.147 million for the same period last year, indicating a 34.5% increase[32] - Adjusted EBITDA for the six months ended October 26, 2024, was $63.1 million, down from $76.8 million for the same period in 2023, reflecting a decrease of 17.9%[44] Assets and Liabilities - Total assets as of October 26, 2024, were $1,019.085 million, slightly up from $1,015.860 million as of April 30, 2024[35] - Total current liabilities decreased to $111.611 million as of October 26, 2024, from $144.879 million as of April 30, 2024[35] - Stockholders' equity increased to $858.397 million as of October 26, 2024, compared to $822.745 million as of April 30, 2024[35] Cash Flow and Investments - Cash and cash equivalents at the end of the period were $68.96 million, down from $100.91 million at the end of the same period in 2023, indicating a decrease of 31.6%[37] - The company reported a net cash provided by operating activities of $24.7 million for the six months ended October 26, 2024, compared to a net cash used of $25.6 million for the same period in 2023[37] - The company reported a net cash used in investing activities of $11.6 million for the six months ended October 26, 2024, compared to $37.6 million for the same period in 2023, indicating a decrease of 69.1%[37] Acquisition Activity - AeroVironment announced an agreement to acquire BlueHalo in an all-stock transaction valued at approximately $4.1 billion[3] - The company anticipates significant acquisition-related expenses contingent upon the closing of the BlueHalo acquisition[13] - The company incurred acquisition-related expenses of $3.7 million for the three months ended October 26, 2024, compared to $1.1 million for the same period in 2023[44] Other Financial Metrics - The segment adjusted gross margin for UxS was $41.4 million for the three months ended October 26, 2024, compared to $30.2 million for the same period in 2023, showing an increase of 37.0%[40] - The company experienced a loss on disposal of property and equipment amounting to $201,000 for the six months ended October 26, 2024[37]