AeroVironment(AVAV) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenue for fiscal 2025 was $275.1 million, a 40% increase from $197.0 million in the same quarter of fiscal 2024, driven by higher product sales of $77.6 million[2] - Fiscal year 2025 total revenue reached $820.6 million, representing a 14% year-over-year growth[5] - Record bookings for fiscal year 2025 totaled $1.2 billion, nearly double the backlog from fiscal year 2024[1] - Net income for the fourth quarter was $16.7 million, or $0.59 per diluted share, compared to $6.0 million, or $0.22 per diluted share, in the prior-year period[8] - Non-GAAP adjusted EBITDA for the fourth quarter was $61.6 million, up from $22.2 million in the same quarter of fiscal 2024[9] - Product sales revenue for the three months ended April 30, 2025, was $242.234 million, a 47.2% increase from $164.598 million in the same period of 2024[24] - Total revenue for the year ended April 30, 2025, reached $820.627 million, up 14.5% from $716.720 million in 2024[24] - Earnings per diluted share for Q2 2025 was $0.59, significantly higher than $0.22 in Q2 2024, indicating improved profitability[32] - Net income for Q2 2025 was $16.7 million, up from $6.0 million in Q2 2024, reflecting a strong upward trend in profitability[34] Margins and Expenses - Gross margin for the fourth quarter was $100.3 million, a 33% increase from $75.6 million in the prior year, although gross margin percentage fell to 36% from 38% due to accelerated intangible amortization expenses[3] - Gross margin for product sales increased to $91.459 million for the three months ended April 30, 2025, compared to $64.550 million in the same period of 2024, reflecting a gross margin percentage increase[24] - Segment adjusted gross margin for the total was $49.11 million for UxS, $52.12 million for LMS, and $7.37 million for MW, reflecting strong profitability across segments[30] - Acquisition-related expenses for Q2 2025 amounted to $5.6 million, indicating ongoing investments in growth through acquisitions[34] - Goodwill impairment for the fourth quarter was recorded at $18.4 million due to decreased forecasted results of the Uncrewed Ground Vehicle business unit[4] - Goodwill impairment recorded in Q2 2025 was $18.4 million, which may impact future financial performance[34] Future Outlook - The company expects fiscal year 2026 revenue to be between $1.9 billion and $2.0 billion, with non-GAAP adjusted EBITDA projected between $300 million and $320 million[11] - Future outlook remains positive with continued focus on product innovation and market expansion strategies[36] Assets and Liabilities - Total current assets increased to $606.516 million as of April 30, 2025, compared to $515.581 million in 2024, marking a 17.6% growth[26] - Cash and cash equivalents decreased to $40.862 million as of April 30, 2025, from $73.301 million in 2024, a decline of 44.5%[26] - Total liabilities increased to $234.668 million as of April 30, 2025, compared to $184.746 million in 2024, reflecting a 27.0% increase[26] Research and Development - Research and development expenses for the year ended April 30, 2025, were $100.729 million, compared to $97.687 million in 2024, an increase of 3.1%[24] Cash Flow - The company reported a net cash used in operating activities of $1.318 million for the year ended April 30, 2025, compared to $15.292 million provided in 2024[28]