AeroVironment : FINAL AVAV Q4 FY25 Earnings Slides

Published: 2025-06-24 16:09:06 ET AVAV

Published on 06/24/2025 at 16:09

JUNE 24, 2025

Achieved record full fiscal year revenue of $821 million, and record fourth-quarter revenue of $275

million, up 14% and 40%

respectively, from the same period

last year

Completed BlueHalo acquisition on May 1, 2025, establishing AV as a

premier defense tech prime best aligned to our customers' highest priorities

Record fiscal year bookings of

$1.2 billion

FY26 year revenue guidance between

$1.9 and $2.0 billion

Metric

FY25

YoY Change

Notes

Revenue

$820.6 m

+14%

Overall increase driven by higher product sales in LMS.

GAAP

Gross Margin

$318.6 m

+12%

Increase driven by higher product gross margin offset by a slight decrease in

service gross margin.

Non-GAAP

Adjusted EBITDA1

$146.4 m

+15%

Increase due to higher revenue and gross margin.

Non-GAAP EPS

(diluted)2

$3.28

+10%

Increase due to higher revenue and gross margin.

Funded Backlog

$726.6 m

+82%

Higher YoY backlog due to increased demand for LMS products and continued interest in UxS products.

Unfunded Backlog

$774.6 m

+472%

Higher unfunded backlog due to multiple Switchblade orders.

YEAR-OVER-YEAR [YoY]

FY25 GAAP NET INCOME WAS $43.6M. REFER TO ADJUSTED EBITDA RECONCILIATION ON APPENDIX C.

FY25 GAAP EPS WAS $1.55 PER DILUTED SHARE. REFER TO RECONCILIATION OF NON-GAAP EARNINGS PER DILUTED SHARE ON APPENDIX A.

Metric

Q4FY25

YoY Change

Notes

Revenue

$275.1 m

+40%

Overall increase driven by strong product sales in LMS.

GAAP

Gross Margin

$100.3 m

+33%

Overall increase driven by higher product margin partially offset by lower service gross

margin and an acceleration of intangible amortization expenses from the UGV business.

Non-GAAP Adjusted

EBITDA1

$61.6 m

+178%

Increase driven by higher revenue, gross margin, and decrease in R&D partially offset by

an increase in SG&A.

Non-GAAP EPS (diluted)2

$1.61

+274%

Increase driven by higher revenue, gross margin, and decrease in R&D partially offset by an increase in SG&A.

Funded Backlog

$726.6 m

+82%

Higher backlog due to increased demand for LMS products and continued interest in UxS products.

Unfunded Backlog

$774.6 m

+472%

Higher unfunded backlog due to multiple Switchblade orders.

YEAR-OVER-YEAR [YoY]

1.Q4 GAAP NET INCOME WAS $16.7M. Refer to Adjusted EBITDA reconciliation on Appendix C.

2 Q4 GAAP EPS was $0.59 per diluted share. Refer to Reconciliation of Non-GAAP Earnings Per Diluted Share on Appendix A

Quarterly Revenue By Type

100%

60%

20% 12%

90% 16%

16%

17%

50%

80%

70%

43%

38%

39%

40%

38%

60%

36%

50%

30%

40%

84% 84%

80%

83%

88%

20%

30%

20%

10%

Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25

Product Revenue

Service Revenue

GAAP Gross Margin

Quarterly Revenue By Segment

$300.0

$275.1

$250.0

$200.0

$197.0

$189.5 $188.5

$167.6

$150.0

$100.0

$50.0

$- Q4 FY24

MW $19.5

LMS $73.8

UxS $103.7

Q1 FY25

$17.5

$52.0

$120.0

Q2 FY25

$25.3

$77.7

$85.4

Q3 FY25

$19.9

$83.9

$63.8

Q4 FY25

$24.1

$138.4

$112.6

Revenue in millions

Percentage Quarterly Revenue

Gross Margin

UxS: Uncrewed Systems | LMS: Loitering Munitions Systems | MW: MacCready Works

PERCENTAGE ADJUSTED GROSS MARGIN1

60%

NON-GAAP DILUTED EPS2

41%

45%

44%

40%

20%

48%

41%

40%

38%

40%

41%

39%

29%

28%

30%

20%

Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25

Adj Product Margin Adj Service Margin Total Adj Gross Margin

$2.00

$1.80

$1.60

$1.40

$1.20

$1.00

$0.80

$0.60

$0.40

$0.20

$1.61

$0.43

Q4 FY24 Q4 FY25

Q4 GAAP Product Margin of 38% and Service Margin of 27%. Refer to GAAP to NON-GAAP reconciliation of Gross Margin on Appendix B.

Refer to Reconciliation of Non-GAAP Diluted Earnings Per Share on Appendix A.

AS OF 06/24/2025

FY25 RESULTS

FY26 GUIDANCE

NOTES / ASSUMPTIONS

Revenue

$821 million

$1.9 to $2.0 billion

1st Half = 45% 2nd Half = 55%

Adjusted EBITDA 17.8% of Revenue

$146 million2

$300 million-$320 million1

~16% at mid-point

intangible amortization and deal and integration

expenses)

Non-GAAP Earnings Per Share (diluted)

$3.283

$2.80 - $3.001

Debt Outstanding Entire Year

Capital Expenditures

6% - 8%

Expenditures

Other

Deal & Integration Expenses

$40M-$45M

Excluding Capital Expenditures

1 THE COMPANY CANNOT PROVIDE A RECONCILIATION TO GAAP NET INCOME OR EARNINGS PER DILUTED SHARE WITHOUT UNREASONABLE EFFORTS DUE TO THE SIZE AND COMPLEXITY OF THE BLUEHALO ACQUISITION AND THE INHERENT DIFFICULTY OF

EBITDA % Trending 10%-12% in Q1 to High Teens % by Q4

Adj. Gross Margins 29% to 31%

IRAD 6% to 7%

SG&A 11% to 13% (excludes

Stock Based Compensation of approx. $35 Million

Includes Cloud Implementation Capital Expenditures

Excludes Integration Related Capital

FORECASTING THE AMORTIZATION OF ACQUIRED INTANGIBLES AND PURCHASE PRICE ADJUSTMENTS. AMORTIZATION EXPENSE OF INTANGIBLES ACQUIRED IN THE BLUEHALO TRANSACTION FOR THE FISCAL YEAR ENDING APRIL 30, 2026, WHICH IS EXPECTED TO BE SIGNIFICANT, WILL BE MATERIALLY IMPACTED BY THE VALUATION OF THE INTANGIBLES. DUE TO THE SIZE, COMPLEXITY AND TIMING OF THE ACQUISITION, THE COMPANY HAS NOT COMPLETED THE VALUATION OF THE INTANGIBLES AND CANNOT ESTIMATE THE AMORTIZATION EXPENSE WITH A REASONABLE DEGREE OF ACCURACY, AND THE COMPANY BELIEVES SUCH RECONCILIATION COULD IMPLY A DEGREE OF PRECISION THAT MIGHT BE CONFUSING OR MISLEADING TO INVESTORS.

2 REFER TO ADJUSTED EBITDA RECONCILIATION ON APPENDIX C.

3 REFER TO RECONCILIATION OF FISCAL YEAR 2025 NON-GAAP DILUTED EARNINGS PER SHARE ON APPENDIX A.

$2,500

$2,250

$2,000

$1,750

$1,500

$1,250

$1,000

$750

$500

$250

70%

visibility 1

$245.4

$112.0

$1,003.8

Q4 FY25 (6/24/25) Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26

Revenue Guidance Range:

$1.9 to $ 2.0B

Revenue - Unfunded Backlog

Anticipated this FY

Revenue - Qtr-to-Date Bookings Anticipated this FY

Revenue - Funded Backlog Anticipated this FY

Revenue Year-to-Date

Company visibility supports revenue guidance range

1 BASED ON MIDPOINT OF GUIDANCE RANGE OF $1.9 TO $2.0 BILLION

AV Consolidated

FY26 Guidance

Revenue: $1.9B to $2.0B

Adj. EBITDA $: $300M to $320M1

Non-GAAP EPS: $2.80 to $3.001

Autonomous Systems Space, Cyber & Directed Energy

FY25 Pro Forma Revenue FY26 Guidance

Revenue: $1.2B to $1.4B

Other

$174 M

FY25 Pro Forma Revenue

Space and Directed Energy

$231 M

FY26 Guidance

Revenue: $0.7B to $0.8B

Counter-UAS and Precision Strike

$523 M

Cyber and

Mission Systems

$415 M

Uncrewed Aircraft Systems

$352 M

FY26 Growth Drivers:

SB-600 JUMP20-X P550

Titan 4 Red Dragon

FY26 Growth Drivers:

Badger

CUAS-DE

Space Communications

FIGURES ARE $USD IN MILLIONS UNLESS OTHERWISE NOTED ABOVE

1 THE COMPANY CANNOT PROVIDE A RECONCILIATION TO GAAP NET INCOME, OR EARNINGS PER DILUTED SHARE WITHOUT UNREASONABLE EFFORTS DUE TO THE SIZE AND COMPLEXITY OF THE BLUEHALO ACQUISITION AND THE INHERENT DIFFICULTY OF FORECASTING THE AMORTIZATION OF ACQUIRED INTANGIBLES AND PURCHASE PRICE ADJUSTMENTS. AMORTIZATION EXPENSE OF INTANGIBLES ACQUIRED IN THE BLUEHALO TRANSACTION FOR THE FISCAL YEAR ENDING APRIL 30, 2026, WHICH IS EXPECTED TO BE SIGNIFICANT, WILL BE MATERIALLY IMPACTED BY THE VALUATION OF THE INTANGIBLES. DUE TO THE SIZE, COMPLEXITY AND TIMING OF THE ACQUISITION, THE COMPANY HAS NOT COMPLETED THE VALUATION OF THE INTANGIBLES AND CANNOT ESTIMATE THE AMORTIZATION EXPENSE WITH A REASONABLE DEGREE OF ACCURACY, AND THE COMPANY BELIEVES SUCH RECONCILIATION COULD IMPLY A DEGREE OF PRECISION THAT MIGHT BE CONFUSING OR MISLEADING

TO INVESTORS.

o 2025 AEROVIRONMENT, INC.

Financial Tables

APPENDIX A - FINANCIAL TABLES

Amortization of acquired intangible assets and other purchase accounting adjustments

$0.25

$0.15

$0.66

$0.54

Equity Method and equity securities investments activity, net

$(0.10)

$0.05

$(0.18)

$0.21

Three months ended April 30, 2025

Three months ended April 30, 2024

Fiscal year ended April 30, 2025

Fiscal Year ended April 30, 2024

Earnings per diluted share $0.59 $0.22 $1.55 $2.18

Acquisition-related expenses $0.16 $0.01 $0.54 $0.06

Legal accrual $0.06 0 $0.06 0

Goodwill impairment $0.65 0 $0.65 0

Earnings per diluted share as adjusted (non-GAAP)

$1.61 $0.43 $3.28 $2.99

APPENDIX B - FINANCIAL TABLES

(in thousands)

Products

Fiscal 4th Quarter FY2024

Fiscal 1st Quarter FY2025

Fiscal 2nd Quarter FY2025

Fiscal 3rd Quarter FY2025

Fiscal 4th Quarter FY2025

Gross Margin $ 64,550 $ 73,985 $ 64,179 $ 58,752 $ 91,459

Intangible Amortization $ 2,637 $ 2,617 $ 2,623 $ 2,606 $ 7,172

Adjusted Gross Margin $ 67,187 $ 76,602 $ 66,802 $ 61,358 $ 98,631

Adj. Prod GM% 40.8% 48.0% 44.2% 43.9% 40.7%

Services

Gross Margin $ 11,084 $ 7,482 $ 9,459 $ 4,447 $ 8,873

Intangible Amortization $ 1,266 $ 1,097 $ 1,097 $ 1,097 $ 1,097

Adjusted Gross Margin $ 12,350 $ 8,579 $ 10,556 $ 5,544 $ 9,970

Adj. Service GM% 38.1% 28.6% 28.4% 19.9% 30.4%

APPENDIX C - FININACIAL TABLES

Full Fiscal Year

Fiscal 1st Quarter

Fiscal 2nd Quarter 2025

7,453

Fiscal 3rd Quarter 2025

(1,754)

Fiscal 4th Quarter 2025

16,664

Full Fiscal Year

(in thousands)

Fiscal 4th Quarter 2024

2024

2025

Net Income (loss) from continued operations

6,047

59,607

21,166

43,619

Interest Expense / (Income), net

148

4,220

239

690

248

1,011

2,188

Tax provision / (benefit)

1,818

1,892

1,485

(221)

(605)

223

882

Depreciation and amortization

10,780

35,749

8,852

9,002

9,290

13,854

40,998

EBITDA (Non-GAAP)

15,157

101,528

31,742

17,014

7,179

31,752

87,687

Cloud amortization

551

1,445

644

606

644

646

2,540

Stock-based compensation

4,644

17,069

4,536

5,601

5,381

5,943

21,461

Acquisition-related expenses

383

2,095

3,684

10,015

5,591

19,291

UGV Goodwill Impairment

18,360

Equity method and equity security investment activity

1,412

5,618

256

(1,044)

(1,454)

(2,773)

(5,015)

Legal Accrual

2,100

Adjusted EBITDA (Non-GAAP)

$ 22,147

$ 127,754

$ 37,178

$ $ 25,862

$ 21,766

$ 61,619

$ 146,425

Disclaimer

AeroVironment Inc. published this content on June 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 24, 2025 at 20:08 UTC.