AeroVironment (AVAV) Q1 2026 Financial Results Summary

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# AeroVironment (AVAV) Q1 2026 Financial Results Summary

AeroVironment, Inc. (NASDAQ: AVAV) released its financial results for the fiscal first quarter ended August 2, 2025, on September 9, 2025. Below is a summary of the key highlights and metrics from their earnings report.

### Key Financial Highlights

– **Revenue:**
– Total revenue reached **$454.7 million**, representing a **140% increase** compared to **$189.5 million** in Q1 of fiscal 2025.
– Legacy revenue comprised **$219.5 million**, which is a **16% increase** year-over-year.

– **Acquisition Impact:**
– The acquisition of **BlueHalo** contributed **$235.2 million** in revenue during the quarter.
– Product sales from BlueHalo accounted for **$123.7 million**, while service revenue contributed **$111.5 million**.

– **Segment Performance:**
– Autonomous Systems (“AxS”) recorded revenue of **$285.3 million**.
– Space, Cyber and Directed Energy (“SCDE”) revenue totaled **$169.4 million**.

– **Gross Margin:**
– Gross margin for Q1 was **$95.1 million**, a **17% increase** from **$81.5 million** a year ago.
– As a percentage of revenue, gross margin fell to **21%**, down from **43%** primarily due to higher intangible amortization expenses linked to the BlueHalo acquisition.

– **Operating Loss:**
– Loss from operations was **$(69.3) million**, compared to operating income of **$23.1 million** in Q1 of the prior fiscal year.
– The current quarter’s loss was affected by **$79.7 million** in non-cash amortization and related expenses.

– **Net Income/Loss:**
– AeroVironment reported a net loss of **$(67.4) million**, equating to **$(1.44)** per diluted share, contrasted with a net income of **$21.2 million** or **$0.75** per diluted share from the prior-year quarter.
– The significant decrease was mainly due to non-cash charges from the acquisition costs.

– **Adjusted Metrics:**
– Non-GAAP adjusted EBITDA was **$56.6 million** compared to **$37.2 million** in Q1 fiscal 2025.
– Non-GAAP earnings per diluted share were **$0.32**, down from **$0.89** in the previous year.

### Backlog and Bookings

– **Backlog:**
– Funded backlog as of August 2, 2025, stood at **$1.1 billion**, an increase from **$726.6 million** at the end of April 2025.
– This figures reflect the company’s strong order book and future revenue visibility.

– **Bookings:**
– Total bookings for the quarter amounted to **$399.0 million**.
– There is an **80% visibility** to the midpoint of the fiscal year 2026 revenue guidance range.

### Dividend and Share Repurchase

– AeroVironment did not declare a quarterly dividend nor indicated any share repurchase activities in the announcement.

### Outlook

– The company continues to project fiscal year 2026 revenue between **$1.9 billion and $2.0 billion**.
– Expected net loss is between **$(77) million and $(72) million**, with an anticipated non-GAAP adjusted EBITDA between **$300 million and $320 million**.
– Loss per diluted share is estimated to range from **$(1.63) to $(1.53)** with adjusted earnings per diluted share anticipated to be between **$3.60 and $3.70**.

### Summary

AeroVironment’s Q1 fiscal 2026 results demonstrate significant growth driven primarily by the BlueHalo acquisition, resulting in a substantial increase in total revenue but a net loss greatly influenced by intangible asset amortization. The company’s backlog and revenue visibility suggest strong operational foundations for the remainder of the fiscal year.

Three Months Ended August 2, 2025 (Unaudited) July 27, 2024
Product sales $313,533 $159,504
Contract services $141,143 $29,979
Total $454,676 $189,483
Cost of sales: Product sales $230,687 $85,519
Cost of sales: Contract services $128,871 $22,497
Total $359,558 $108,016
Gross margin: Product sales $82,846 $73,985
Gross margin: Contract services $12,272 $7,482
Total $95,118 $81,467
Selling, general and administrative $131,276 $33,795
Research and development $33,114 $24,613
(Loss) income from operations -69,272 $23,059
Interest expense, net -17,415 -239
Other income (expense), net $2,361 -234
(Loss) income before income taxes -84,326 $22,586
Provision for income taxes -15,169 $1,485
Equity method investment income, net of tax $1,787 $65
Net (loss) income -67,370 $21,166
Net (loss) income per share: Basic -1.44 $0.76
Net (loss) income per share: Diluted -1.44 $0.75
Weighted-average shares outstanding: Basic 46,882,350 27,959,692
Weighted-average shares outstanding: Diluted 46,882,350 28,281,827
As of August 2, 2025 April 30, 2025
Cash and cash equivalents $685,803 $40,862
Accounts receivable, net of allowance for credit losses of $773 at August 2, 2025 and $203 at April 30, 2025 $198,293 $101,967
Unbilled receivables and retentions $463,870 $290,009
Inventories, net $232,888 $144,090
Income taxes receivable $20,778 $622
Prepaid expenses and other current assets $37,707 $28,966
Total current assets $1,639,339 $606,516
Long-term investments $36,267 $31,627
Property and equipment, net $148,807 $50,704
Operating lease right-of-use assets $98,514 $31,879
Deferred income taxes $0 $61,460
Intangibles, net $1,118,848 $48,711
Goodwill $2,539,560 $256,781
Other assets $42,702 $32,889
Total assets $5,624,037 $1,120,567
Accounts payable $91,133 $72,462
Wages and related accruals $73,752 $44,253
Customer advances $61,269 $15,952
Current operating lease liabilities $16,759 $10,479
Income taxes payable $0 $356
Other current liabilities $32,017 $28,659
Total current liabilities $274,930 $172,161
Long-term debt $725,703 $30,000
Non-current operating lease liabilities $87,246 $23,812
Other non-current liabilities $2,016 $2,026
Liability for uncertain tax positions $6,061 $6,061
Deferred income taxes $101,002 $0
Common stock, $0.0001 par value: Issued and outstanding shares—49,932,300 shares at August 2, 2025 and 28,267,517 shares at April 30, 2025 $6 $4
Additional paid-in capital $4,226,012 $618,711
Accumulated other comprehensive loss -5,875 -6,514
Retained earnings $206,936 $274,306
Total stockholders’ equity $4,427,079 $886,507
Total liabilities and stockholders’ equity $5,624,037 $1,120,567