Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $188 million, marking a 4% increase from $180.8 million in Q2 2024, setting a new second-quarter record for the company [34] - Adjusted EBITDA for Q2 was $25.9 million, down from $39.5 million in the same period last year, attributed to higher SG&A and R&D expenses [42][43] - Funded backlog grew to $467 million, a 25% increase compared to the first quarter of fiscal 2025 [51] Business Segment Data and Key Metrics Changes - Loitering Munition Systems (LMS) segment revenue was $77.7 million, a 157% increase from $30.2 million in Q2 2024, driven by strong demand for Switchblade products [36][57] - Uncrewed Systems (UxS) segment revenue was $85.4 million, a 36% decrease from $132.8 million in the previous year, primarily due to a decline in Ukraine-related revenue [35] - MacCready Works segment revenue increased by 42% to $25.3 million, driven by HAPS revenue from SoftBank and the US Department of Defense [37] Market Data and Key Metrics Changes - The company reported strong international demand for its products, particularly Switchblade, with new orders from Lithuania, Romania, and Sweden, as well as interest from Taiwan and Greece [20][101] - The company anticipates a significant increase in global demand for its UAS and loitering munitions, driven by evolving defense strategies [56][90] Company Strategy and Development Direction - The company is focused on expanding its production capacity and throughput to meet growing customer needs, with plans to achieve over $500 million in annual Switchblade product revenue by the end of the fiscal year [21] - The acquisition of BlueHalo is expected to enhance the company's capabilities in defense technology, positioning it as a leader in various sectors including space communication and cybersecurity [14][54] - The company aims to provide a holistic common operating picture for its entire portfolio, integrating solutions with third-party platforms [85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite potential risks from changes in administration and ongoing geopolitical tensions [109] - The company reaffirmed its revenue, adjusted EBITDA, and non-GAAP EPS guidance for fiscal year 2025, expecting to set new records [58][109] - Management highlighted the increasing importance of UAS and loitering munitions in global defense strategies, indicating a strong growth trajectory for the company [56][90] Other Important Information - The company incurred $3.7 million in acquisition-related expenses in Q2, which are expected to continue into the next fiscal year [43] - The company completed a $200 million revolving credit facility during the quarter, enhancing its financial flexibility [50] Q&A Session Summary Question: Can you describe the demand environment for Uncrewed Systems? - Management noted that the UxS segment remains a strong revenue driver, with a solid pipeline for JUMP 20 systems and expectations for growth with the introduction of P550 [66][68] Question: What is the status of deliveries to Taiwan and the IDIQ contract protest? - Management confirmed successful deliveries of Switchblade products under the Replicator program and stated that they are awaiting a decision from the Department of Justice regarding the IDIQ contract protest [71][72] Question: How is the integration of Switchblade into the Kinesis Ecosystem progressing? - Management indicated that integration plans are underway, prioritizing customer needs and training processes [80][82] Question: How did Ukraine impact the Loitering Munitions segment? - Management expressed confidence in the growth of the LMS segment, stating that demand is not solely dependent on Ukraine and is expected to continue globally [90][92] Question: What is the outlook for international Switchblade sales? - Management highlighted ongoing interest from multiple countries and plans to increase production capacity to meet anticipated demand [102][104]

Part I [**Item 1. Financial Statements (Unaudited)**](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q2 FY2025 financials show total assets at $1.019 billion, revenue growth with declining net income, and improved six-month operating cash flow [**Condensed Consolidated Balance Sheets**](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to $1.019 billion, liabilities decreased to $160.7 million due to term loan repayment, and equity rose to $858.4 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Oct 26, 2024 (Unaudited) | Apr 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $514,845 | $515,581 | | **Total Assets** | **$1,019,085** | **$1,015,860** | | **Total Current Liabilities** | $111,611 | $144,879 | | **Total Liabilities** | **$160,688** | **$193,115** | | **Total Stockholders' Equity** | **$858,397** | **$822,745** | [**Condensed Consolidated Statements of Operations**](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 FY2025 revenue grew 4.2% to $188.5 million, but operating income and net income significantly declined, while six-month revenue increased 13.4% Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Oct 26, 2024 | Three Months Ended Oct 28, 2023 | Six Months Ended Oct 26, 2024 | Six Months Ended Oct 28, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $188,458 | $180,816 | $377,941 | $333,163 | | **Gross Margin** | $73,638 | $75,350 | $155,105 | $141,010 | | **Income from Operations** | $7,006 | $25,178 | $30,065 | $51,545 | | **Net Income** | $7,543 | $17,840 | $28,709 | $39,735 | | **Diluted EPS** | $0.27 | $0.66 | $1.02 | $1.50 | [**Condensed Consolidated Statements of Cash Flows**](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six-month operating cash flow improved to a $24.7 million inflow, investing cash outflow decreased, and financing cash flow shifted to a $17.5 million outflow Cash Flow Summary for the Six Months Ended (in thousands) | Cash Flow Activity | Oct 26, 2024 | Oct 28, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $24,709 | $(25,590) | | Net cash used in investing activities | $(11,630) | $(37,635) | | Net cash (used in) provided by financing activities | $(17,471) | $31,544 | | **Net decrease in cash and cash equivalents** | **$(4,341)** | **$(31,951)** | [**Notes to Condensed Consolidated Financial Statements (Unaudited)**](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail segment reorganization into UxS, LMS, MW, the BlueHalo acquisition, credit facility amendment, and goodwill impairment risk - Effective May 1, 2023, the company reorganized into three reportable segments: Uncrewed Systems (UxS), Loitering Munitions Systems (LMS), and MacCready Works (MW) to drive operational improvements and synergies[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - As of October 26, 2024, the company had approximately **$467.1 million** of remaining performance obligations (funded backlog), with **72%** expected to be recognized as revenue in fiscal 2025[44](index=44&type=chunk) - The MUAS reporting unit, with a goodwill balance of **$135.8 million**, is considered at an increased risk of failing future goodwill impairment tests as its fair value exceeded its carrying value by only **10%** at the last annual test[94](index=94&type=chunk)[188](index=188&type=chunk) - On October 4, 2024, the company amended its credit agreement, increasing the revolving credit facility to **$200 million** and repaying the existing Term Loan Facility in full As of October 26, 2024, **$175.2 million** was available under the revolving facility[106](index=106&type=chunk)[109](index=109&type=chunk) - On November 19, 2024, the company announced a definitive agreement to acquire BlueHalo in an all-stock transaction, issuing **18,548,698** shares of common stock[155](index=155&type=chunk)[156](index=156&type=chunk) - In connection with the BlueHalo acquisition, the company secured a debt commitment for a new **$700 million** Term Loan A facility to refinance a portion of BlueHalo's debt[164](index=164&type=chunk)[252](index=252&type=chunk) [**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 13% six-month revenue growth driven by LMS, offset by UxS decline, decreased gross margin, increased operating expenses, and strong liquidity [**Results of Operations**](index=53&type=section&id=Results%20of%20Operations) Q2 revenue grew 4% YoY, driven by LMS segment's 157% increase, offset by UxS decline, with gross margin falling and operating expenses rising Revenue by Segment - Three Months Ended (in millions) | Segment | Q2 FY25 (Oct 26, 2024) | Q2 FY24 (Oct 28, 2023) | % Change | | :--- | :--- | :--- | :--- | | Uncrewed Systems (UxS) | $85.4 | $132.8 | (36%) | | Loitering Munitions (LMS) | $77.7 | $30.2 | 157% | | MacCready Works (MW) | $25.3 | $17.8 | 42% | | **Total Revenue** | **$188.5** | **$180.8** | **4%** | - The increase in Q2 revenue was primarily driven by a **$47.9 million** increase in Switchblade product production, reflecting strong global demand and a **$9.9 million** cumulative catch-up adjustment from the definitization of LMS contracts[196](index=196&type=chunk)[210](index=210&type=chunk) - The decrease in Q2 UxS revenue was primarily due to a **$41.8 million** drop in product deliveries, mainly from reduced international sales compared to the prior year[196](index=196&type=chunk)[206](index=206&type=chunk) - SG&A expense for Q2 increased by **$9.8 million** (**35%** YoY) due to higher employee-related costs, increased sales and marketing efforts, and acquisition-related expenses[199](index=199&type=chunk) - R&D expense for Q2 increased by **$6.7 million** (**30%** YoY) due to heightened development activities for product enhancements, new product lines, and support for acquired businesses[200](index=200&type=chunk) [**Liquidity and Capital Resources**](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is strong with positive operating cash flow and an amended $200 million revolving credit facility, but future indebtedness will increase with the BlueHalo acquisition - Funded backlog increased to **$467.1 million** as of October 26, 2024, up from **$400.2 million** as of April 30, 2024 Unfunded backlog stood at **$1.83 billion**[241](index=241&type=chunk)[242](index=242&type=chunk) - The company amended its credit facility, increasing the revolving credit line to **$200 million** and repaying the term loan As of October 26, 2024, **$175.2 million** was available for borrowing[248](index=248&type=chunk) - Cash flow from operations for the six-month period was a positive **$24.7 million**, a **$50.3 million** improvement from the negative **$25.6 million** in the prior-year period, primarily due to favorable changes in working capital[255](index=255&type=chunk) [**Item 3. Quantitative and Qualitative Disclosures About Market Risk**](index=71&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations on its variable-rate credit facility and foreign currency exposure from Euro-denominated cash - The company has interest rate risk due to its **$15.0 million** outstanding balance on a variable-rate revolving credit facility[262](index=262&type=chunk) - Foreign currency exchange rate risk exists as the acquisition of Telerob resulted in a portion of the company's cash balance being held in Euros[263](index=263&type=chunk) [**Item 4. Controls and Procedures**](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of October 26, 2024, with no material changes to internal controls - The CEO and CFO concluded that as of October 26, 2024, the company's disclosure controls and procedures were effective[267](index=267&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[268](index=268&type=chunk) Part II [**Item 1. Legal Proceedings**](index=73&type=section&id=Item%201.%20Legal%20Proceedings) The company faces two ongoing legal proceedings in California from former employees regarding alleged labor code violations - The company is facing a class action complaint filed by a former employee in California alleging violations of the state's Labor Code regarding wages, meal breaks, and overtime[271](index=271&type=chunk) - A separate complaint was filed by another former employee seeking penalties under California's Private Attorney General Act (PAGA) for similar labor code violations[272](index=272&type=chunk) [**Item 1A. Risk Factors**](index=73&type=section&id=Item%201A.%20Risk%20Factors) New risk factors include BlueHalo acquisition completion uncertainty, integration challenges, failure to realize synergies, increased indebtedness, and stockholder dilution - The acquisition of BlueHalo is subject to numerous closing conditions, including regulatory and shareholder approvals, and may be terminated, potentially requiring AeroVironment to pay a **$200 million** termination fee under certain circumstances[275](index=275&type=chunk)[277](index=277&type=chunk)[280](index=280&type=chunk) - Integrating BlueHalo's business may be more difficult, costly, or time-consuming than expected, and the combined company may fail to realize the anticipated synergies and benefits, which could adversely affect business results[308](index=308&type=chunk)[311](index=311&type=chunk) - The company will incur substantial non-recurring costs associated with the transaction and integration, and its consolidated indebtedness is expected to increase substantially, heightening financial risks[302](index=302&type=chunk)[337](index=337&type=chunk)[338](index=338&type=chunk) - Current AeroVironment stockholders will experience significant ownership dilution, owning approximately **60.5%** of the combined company post-transaction, and may not realize a commensurate benefit if synergies are not achieved[331](index=331&type=chunk)[336](index=336&type=chunk) - Following the closing, funds affiliated with Arlington Capital Partners are expected to own approximately **26.2%** of the company's common stock and will have the right to designate up to two directors, allowing them to exert significant influence[326](index=326&type=chunk)[328](index=328&type=chunk) [**Item 5. Other Information**](index=91&type=section&id=Item%205.%20Other%20Information) The Compensation Committee approved an amended Executive Severance Plan for top executives and a new Executive Transaction Severance Plan - The company's Board approved an amended and restated Executive Severance Plan for its CEO, CFO, General Counsel, and Chief Accounting Officer[344](index=344&type=chunk)[346](index=346&type=chunk) - A new Executive Transaction Severance Plan was also approved for three Senior Vice Presidents, providing severance benefits upon termination without cause on or before November 18, 2025[348](index=348&type=chunk)[349](index=349&type=chunk) [**Item 6. Exhibits**](index=95&type=section&id=Item%206.%20Exhibits) Key exhibits filed include the BlueHalo merger agreement, credit agreement amendment, and new executive severance plans - Key exhibits filed include the merger agreement with BlueHalo, the third amendment to the credit agreement, and new executive severance plans[354](index=354&type=chunk)

PROCEED WITH CERTAINTY SECOND QUARTER Fiscal Year 2025 EARNINGS PRESENTATION December 4, 2024 SECOND QUARTER FISCAL YEAR 2025 Safe Harbor Statement Certain words in this presentation may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as "believe," "anti ...

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]

Revenue and Income - Revenue for the three months ended July 27, 2024, was $189.5 million, an increase of 24.4% compared to $152.3 million for the same period in 2023[173]. - Revenue for the three months ended July 27, 2024, was $189.5 million, an increase of $37.2 million, or 24%, compared to $152.3 million for the same period in 2023[176]. - Net income for the three months ended July 27, 2024, was $21.2 million, slightly down from $21.9 million in the same period of 2023[173]. - The company reported an income from operations of $23.1 million for the three months ended July 27, 2024, compared to $26.4 million in the same period of 2023[173]. Expenses - Gross margin for the three months ended July 27, 2024, was $81.5 million, representing a gross margin percentage of 43.0%, up from $65.7 million and 43.1% in the prior year[173]. - Research and development expenses increased to $24.6 million for the three months ended July 27, 2024, compared to $15.5 million in the same period of 2023, reflecting a 59.2% increase[173]. - SG&A expenses for the three months ended July 27, 2024, were $33.8 million, or 18% of revenue, compared to $23.8 million, or 16% of revenue, for the same period in 2023[178]. - R&D expenses for the three months ended July 27, 2024, were $24.6 million, or 13% of revenue, compared to $15.5 million, or 10% of revenue, for the same period in 2023[179]. - Cost of sales for the three months ended July 27, 2024, was $108.0 million, an increase of $21.3 million, or 25%, compared to $86.7 million in the prior year[177]. Segment Performance - The company has three reportable segments: Uncrewed Systems (UxS), Loitering Munitions Systems (LMS), and MacCready Works (MW), with segment revenue and adjusted gross margin reported for each[173]. - UxS revenue for the three months ended July 27, 2024, was $120.0 million, representing an increase of $21.8 million, or 22%, compared to $98.2 million in the prior year[183]. - LMS revenue for the three months ended July 27, 2024, was $52.0 million, an increase of $21.1 million, or 68%, compared to $30.9 million for the same period in 2023[186]. - Product sales increased by $40.0 million, primarily driven by a $21.9 million increase from Switchblade products and a $19.1 million increase from UxS products[176]. Cash Flow and Liquidity - For the three months ended July 27, 2024, net cash provided by operating activities increased by $45.4 million to $28.4 million, compared to a net cash used of $(17.1) million for the same period in 2023[204]. - The net cash used in investing activities increased by $3.0 million to $6.6 million for the three months ended July 27, 2024, primarily due to increased property and equipment acquisitions[205]. - The company anticipates funding its normal recurring trade payables and ongoing R&D costs through existing working capital and cash provided by operating activities, which are expected to be sufficient for the next twelve months[197]. - The company’s liquidity needs include financing working capital, investing in capital expenditures, and supporting product development efforts[198]. Backlog and Contracts - Funded backlog as of July 27, 2024, was approximately $372.9 million, down from $400.2 million as of April 30, 2024[190]. - The company’s backlog is subject to large variations and does not guarantee future sales, as many contracts do not obligate the U.S. government to purchase goods or services[194]. - The company received $128 million of initial funding under a new IDIQ contract for LMS systems with a ceiling value of $990 million in August 2024[190]. Goodwill and Impairment - The MUAS reporting unit had a goodwill balance of $135.8 million as of July 27, 2024, following a goodwill impairment charge of $156.0 million recognized in the fiscal year ended April 30, 2023[168]. - The estimated fair value of the MUAS reporting unit does not substantially exceed its carrying value, indicating an increased risk of future impairment[168]. Tax and Interest - The effective income tax rate for the three months ended July 27, 2024, was 6.6%, compared to 5.7% for the same period in 2023[181]. - Interest expense decreased significantly to $239,000 for the three months ended July 27, 2024, from $2.0 million in the prior year[173]. - The current outstanding balance of the Credit Facilities is $17.5 million, which bears a variable interest rate, and the company is exposed to increased interest costs due to rising market rates[210]. Capital Contributions and Acquisitions - The company paid a total purchase price of $134.4 million for the Tomahawk acquisition, consisting of $109.8 million in stock and $24.2 million in cash on hand[202]. - The company has committed to make capital contributions totaling $20.0 million to a limited partnership fund, with $10.0 million remaining as of July 27, 2024[202]. Adjustments and Revenue Recognition - Favorable cumulative catch-up adjustments in revenue for the three months ended July 27, 2024, amounted to $0.8 million, while unfavorable adjustments were $0.3 million[161].

Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2025 was $189.5 million, a 24% increase from $152.3 million in Q1 fiscal 2024, setting a new first-quarter revenue record for the company [7][20] - Adjusted gross margin for Q1 was 45%, consistent with the same period last year, while GAAP gross margins were 43% [24][25] - Adjusted EBITDA for Q1 was $37 million, flat compared to the previous year, as higher revenue and gross margin were offset by increased R&D and SG&A expenses [25][28] Business Segment Data and Key Metrics Changes - Uncrewed Systems (UxS) segment revenue was $120 million, a 22% increase from $98.2 million in the same quarter last year, driven by strong demand for the Puma franchise and JUMP 20 platforms [14][21] - Loitering Munition Systems (LMS) segment revenue reached $52 million, a 68% increase from $30.9 million in Q1 fiscal 2024, with significant contributions from Switchblade products [11][22] - MacCready Works segment revenue was $17.5 million, a decrease of 24% from $23.2 million in the same quarter last year, impacted by U.S. government delayed approvals [17][22] Market Data and Key Metrics Changes - The company is experiencing strong demand for its autonomous systems, particularly in the defense sector, with a robust pipeline of opportunities both domestically and internationally [10][31] - The U.S. Army's recent $1 billion IDIQ contract is expected to increase funded backlog in the coming quarters [8][30] - The company anticipates continued momentum in international demand for Switchblade and JUMP 20 solutions [31] Company Strategy and Development Direction - The company is focused on expanding production capacity to meet increasing demand, with plans to select an additional manufacturing location for Loitering Munition production [13][80] - The company aims to leverage its strong relationships with the U.S. Department of Defense and international customers to secure additional contracts and orders [10][76] - The strategic emphasis is on innovation in autonomous systems and enhancing manufacturing capabilities to support future growth [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance for fiscal 2025, supported by a healthy backlog and strong demand for autonomous solutions [30][31] - The company is optimistic about the potential for additional orders under the new IDIQ contract and expects to see progress payments that will improve cash flow [38][55] - Management highlighted the importance of international sales and the growing pipeline of opportunities, particularly for Switchblade products [72][76] Other Important Information - The company reported a total cash and investments amounting to $103 million at the end of Q1, an increase from $94.3 million at the end of the previous quarter [29] - Free cash flow during the quarter was $23 million, largely due to decreased inventories [29] Q&A Session Summary Question: How should we think about the task order timing and amounts under the IDIQ contract? - Management confirmed that the $1 billion IDIQ contract is expected to contribute to fiscal 2025 guidance, with initial task orders already booked [36][37] Question: Do you expect other releases or tranches during this fiscal year? - Management anticipates multiple additional Switchblade orders throughout the fiscal year, with a robust pipeline of opportunities [42][43] Question: What programs are associated with the $990 million Switchblade IDIQ? - The $990 million IDIQ contract is intended to fulfill various needs, including U.S. Army requirements and potential international sales [48][49] Question: Will the IDIQ contract help facilitate international sales? - Yes, the IDIQ contract is designed to accommodate international sales, improving the speed of the procurement process [74][76] Question: What is the current status of the FMS pipeline for Switchblade? - The company is engaged with over 50 countries, with a growing number of active customers in the pipeline [70][72]

Financial Performance - Q1 FY25 - Revenue for Q1 FY25 reached $189.5 million, a 24% increase compared to Q1 FY24[8] - GAAP Gross Margin for Q1 FY25 was $81.5 million, also a 24% increase year-over-year[8] - Adjusted EBITDA for Q1 FY25 was $37.2 million, in line with the same quarter last year[8] - Non-GAAP EPS (diluted) was $0.89, an 11% decrease compared to last year[8] - Funded Backlog was $372.9 million, a 31% decrease due to contract award timing[8] Segment Performance - Loitering Munition Systems (LMS) segment achieved a first-quarter revenue record of $52 million[5] FY25 Guidance (as of September 4, 2024) - Revenue is projected to be between $790 million and $820 million, representing a 12% increase at the midpoint compared to FY24 revenue of $717 million[20] - Net Income is expected to be between $74 million and $83 million, a 31% increase at the midpoint compared to FY24 net income of $60 million[20] - Adjusted EBITDA is projected to be between $143 million and $153 million, a 16% increase at the midpoint compared to FY24 adjusted EBITDA of $128 million[20] - Earnings Per Share (diluted) is expected to be between $2.61 and $2.92, a 27% increase at the midpoint compared to FY24 EPS of $2.18[20] - Non-GAAP Earnings Per Share (diluted) is projected to be between $3.18 and $3.49, an 11% increase at the midpoint compared to FY24 Non-GAAP EPS of $2.99[20]

Exhibit 99.1 FISCAL 2025 FIRST QUARTER RESULTS AeroVironment Announces Fiscal 2025 First Quarter Results ARLINGTON, VA, September 4, 2024 — AeroVironment, Inc. ("AeroVironment" or the "Company") reported today financial results for the fiscal first quarter ended July 27, 2024. First Quarter Highlights: ● Record first quarter revenue of $189.5 million up 24% year-over-year ● First quarter net income of $21.2 million and adjusted EBITDA of $37.2 million ● In August 2024 awarded U.S. Army Lethal Unmanned Syste ...

AeroVironment, Inc. (NASDAQ:AVAV) Q4 2024 Earnings Conference Call June 26, 2024 4:30 PM ET Company Participants Jonah Teeter-Balin - Senior Director, Corporate Development & Investor Relations Wahid Nawabi - Chairman, President & Chief Executive Officer Kevin McDonnell - Senior Vice President & Chief Financial Officer Conference Call Participants Greg Konrad - Jefferies Peter Arment - Baird Ken Herbert - RBC Bryce Sandberg - William Blair Andre Madrid - BTIG Operator Good day, and thank you for standing by ...

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, 2024 ☐ 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 other jurisdiction of ...