AeroVironment(AVAV) - 2026 Q2 - Quarterly Results

Revenue and Growth - Revenue for Q2 fiscal 2026 was $472.5 million, a 151% increase from $188.5 million in Q2 fiscal 2025, driven by higher product sales of $173.8 million and service revenue of $110.2 million[2] - The acquisition of BlueHalo contributed $134.4 million in product revenue and $110.7 million in service revenue for the current quarter[2] - Product sales revenue for the three months ended November 1, 2025, was $325,037,000, a significant increase from $151,231,000 for the same period in 2024, representing a growth of 114.5%[24] - Total revenue for the six months ended November 1, 2025, reached $927,184,000, compared to $377,941,000 for the same period in 2024, marking a 145.9% increase[24] - Bookings for the quarter were $1.4 billion, with a book-to-bill ratio of 2.9[6] Profitability and Loss - Gross margin for Q2 fiscal 2026 was $104.1 million, up 41% from $73.6 million in Q2 fiscal 2025, but as a percentage of revenue, it fell to 22% from 39% due to increased service revenue and amortization expenses[3] - Loss from operations for Q2 fiscal 2026 was $(30.2) million, compared to income from operations of $7.0 million in the prior year, primarily due to increased SG&A expenses of $60.4 million[4] - Net loss for Q2 fiscal 2026 was $(17.1) million, or $(0.34) per diluted share, compared to net income of $7.5 million, or $0.27 per diluted share, in the prior-year period[8] - The company reported a net loss of $17,103,000 for the three months ended November 1, 2025, compared to a net income of $7,543,000 for the same period in 2024[24] - Basic net loss per share for the three months ended November 1, 2025, was $(0.34), compared to earnings of $0.27 per share in the same period last year[24] Cash Flow and Liquidity - Cash and cash equivalents increased to $359,434,000 as of November 1, 2025, from $40,862,000 at the beginning of the period, reflecting a significant improvement in liquidity[28] - The company incurred a net cash used in operating activities of $(168,810,000) for the six months ended November 1, 2025, compared to cash provided of $24,709,000 in the same period last year[28] Assets and Liabilities - Total assets as of November 1, 2025, were $5,638,466,000, a substantial increase from $1,120,567,000 as of April 30, 2025[26] - Long-term debt increased to $726,793,000 as of November 1, 2025, compared to $30,000,000 as of April 30, 2025, reflecting significant financing activities[26] Future Projections - For fiscal year 2026, the company expects revenue between $1.95 billion and $2.0 billion, with a net loss between $(38) million and $(30) million[11] - The forecast for the fiscal year ending April 30, 2026, indicates a net loss per diluted share ranging from $0.76 to $0.61, while the adjusted earnings per diluted share is projected to be between $3.40 and $3.55[36] - The company expects adjusted EBITDA for the fiscal year ending April 30, 2026, to be between $300 million and $320 million, significantly higher than the $146 million reported for the fiscal year ended April 30, 2025[37] Adjusted EBITDA and Non-GAAP Measures - Non-GAAP adjusted EBITDA for Q2 fiscal 2026 was $45.0 million, compared to $25.9 million in Q2 fiscal 2025[9] - The company reported a segment adjusted EBITDA of $44,958,000 for the three months ended November 1, 2025, compared to $25,862,000 for the same period in 2024, indicating a growth of 73.7%[30] - Adjusted EBITDA for the six months ended November 1, 2025, was $101.5 million, up from $63.1 million for the same period in 2024, reflecting a year-over-year increase of 60.5%[34] - The company emphasizes the importance of non-GAAP measures, such as adjusted EBITDA, to provide a clearer view of long-term profitability trends and operational performance[38] - The company excludes certain expenses from its non-GAAP earnings per diluted share calculation to facilitate consistent comparisons of operating results over time[39] - Adjusted EBITDA is defined as net income before interest, taxes, and depreciation, adjusted for specific non-cash items, and is frequently used by analysts and investors in the industry[40] Expenses and Compensation - Stock-based compensation for the fiscal year ending April 30, 2026, is projected to be $38 million, compared to $22 million for the previous fiscal year[37] - Acquisition-related expenses are forecasted to be between $37 million and $39 million for the fiscal year ending April 30, 2026, up from $19 million in the prior year[37] - The company reported a depreciation and amortization expense of $279 million for the fiscal year ending April 30, 2026, compared to $41 million for the fiscal year ended April 30, 2025[37] Strategic Focus - The company is focused on integrating acquisitions and expanding manufacturing capacity to meet evolving defense needs[1]