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AeroVironment Announces Fiscal 2025 Fourth Quarter and Fiscal Year Results

1. AVAV reported record revenue of $275.1 million for Q4 2025. 2. Fiscal year net income increased to $43.6 million, despite goodwill impairment of $18.4 million. 3. Company expects 2026 revenue between $1.9 billion and $2.0 billion from improved product demand. 4. Record fiscal year bookings reached $1.2 billion, reflecting strong market positioning. 5. Acquisition of BlueHalo enhances AVAV's defense technology portfolio and market competitiveness.

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FAQ

Why Bullish?

The strong performance in revenue and bookings suggests solid demand, similar to previous periods where increased demand led to stock price upticks.

How important is it?

Record revenues, net income growth, and a strong outlook significantly influence investor confidence and stock price.

Why Long Term?

Given the projected revenue increase for FY 2026 and strategic acquisitions, AVAV may see sustained growth over the long term.

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ARLINGTON, Va.--(BUSINESS WIRE)--AeroVironment, Inc. (NASDAQ: AVAV) (“AeroVironment” or the “Company”) reported today financial results for the fiscal fourth quarter and year ended April 30, 2025.“AeroVironment finished out fiscal year 2025 with a remarkable fourth quarter, which included record revenue, significantly higher profits and a robust backlog nearly double that from fiscal year 2024,” said Wahid NawabiShare Fourth Quarter and Fiscal Year Highlights: Record fourth quarter revenue of $275.1 million and fiscal year revenue of $820.6, up 40% and 14% year-over-year, respectively Fourth quarter and fiscal year net income of $16.7 million and $43.6 million, respectively and record fourth quarter and fiscal year non-GAAP adjusted EBITDA of $61.6 million and $146.4 million, respectively Record fiscal year bookings of $1.2 billion “AeroVironment finished out fiscal year 2025 with a remarkable fourth quarter, which included record revenue, significantly higher profits and a robust backlog nearly double that from fiscal year 2024,” said Wahid Nawabi, AeroVironment chairman, president and chief executive officer. “The investments we’ve consistently made in our multi-generational Uncrewed Systems and Loitering Munition Systems products coupled with our strong execution, continue to pay off, as evidenced by significantly higher demand and key strategic wins leading to a record $1.2 billion in total bookings throughout this fiscal year.” Nawabi continued, “Our acquisition of BlueHalo further advances our leadership position within the defense-technology sector by adding a complementary portfolio of innovative products and capabilities aligned to our customers’ highest priorities. With integrated solutions across every domain of modern warfare, enhanced innovation and domestic manufacturing scale, we believe we are well positioned to meet the rising demand across the globe and drive strong growth and value creation in fiscal year 2026 and beyond.” FISCAL 2025 FOURTH QUARTER RESULTS Revenue for the fourth quarter of fiscal 2025 was $275.1 million, an increase of 40% as compared to $197.0 million for the fourth quarter of fiscal 2024, primarily due to higher product sales of $77.6 million. From a segment standpoint, the year-over-year increase was due to revenue increases in Loitering Munitions Systems (“LMS”), MacCready Works (“MW”) and Uncrewed Systems (“UxS”) of 87%, 24% and 9%, respectively. Gross margin for the fourth quarter of fiscal 2025 was $100.3 million, an increase of 33% as compared to $75.6 million for the fourth quarter of fiscal 2024, reflecting higher product margin of $26.9 million, partially offset by lower service gross margin of $2.3 million. Gross margin in the fiscal 2025 fourth quarter was negatively impacted by an accelerated intangible amortization expense of $4.6 million, resulting from a decrease in forecasted results of the Uncrewed Ground Vehicle (“UGV”) business. As a percentage of revenue, gross margin fell to 36% from 38%, primarily due to the UGV accelerated intangible amortization expense. Impairment of goodwill for the fourth quarter of fiscal 2025 was $18.4 million resulting from a decrease in forecasted results of the UGV business unit. As part of the annual goodwill impairment analysis, the carrying value of the UGV reporting unit was determined to be above its fair value and an impairment was recorded. Income from operations for the fourth quarter of fiscal 2025 was $13.8 million as compared to $5.9 million for the fourth quarter of last fiscal year. The increase year-over-year was primarily due to an increase in gross margin of $24.7 million and a decrease in research and development (“R&D”) expense of $10.2 million, partially offset by the UGV goodwill impairment of $18.4 million and an increase in selling, general and administrative (“SG&A”) expense of $8.6 million, which includes an increase of $5.2 million of acquisition related expenses resulting from our acquisition of BlueHalo, which closed on May 1, 2025. Other loss, net, for the fourth quarter of fiscal 2025 was $0.7 million, as compared to $1.5 million for the fourth quarter of last fiscal year. Provision for income taxes for the fourth quarter of fiscal 2025 was $0.2 million, as compared to benefit from income taxes of $(1.8) million for the fourth quarter of last fiscal year. Net income for the fourth quarter of fiscal 2025 was $16.7 million, or $0.59 per diluted share, as compared to $6.0 million, or $0.22 per diluted share, in the prior-year period, respectively. The fourth quarter of fiscal 2025 was negatively impacted by non-cash UGV goodwill impairment charges of $18.4 million, or $0.65 per diluted share. Non-GAAP adjusted EBITDA for the fourth quarter of fiscal 2025 was $61.6 million and non-GAAP earnings per diluted share were $1.61, as compared to $22.2 million and $0.43, respectively, for the fourth quarter of fiscal 2024. BACKLOG As of April 30, 2025, funded backlog (defined as remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $726.6 million, as compared to $400.2 million as of April 30, 2024. Bookings (defined as firm orders entered into) during the fiscal year ending April 30, 2025 were $1.2 billion. FISCAL 2026 — OUTLOOK FOR THE FULL YEAR For fiscal year 2026 inclusive of the projected results of the BlueHalo acquisition, which closed May 1, 2025, the Company expects revenue of between $1.9 billion and $2.0 billion, non-GAAP adjusted EBITDA of between $300 million and $320 million, and non-GAAP earnings per diluted share, which excludes amortization of intangible assets, other non-cash purchase accounting expenses and equity securities investments gains or losses, of between $2.80 and $3.00. 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. The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, subject to certain risks and uncertainties, including certain assumptions with respect to our ability to efficiently and on a timely basis integrate acquisitions, obtain and retain government contracts, changes in the timing and/or amount of government spending, react to changes in the demand for our products and services, activities of competitors, changes in the regulatory environment, and general economic and business conditions in the United States and elsewhere in the world. Investors are reminded that actual results may differ materially from these estimates and investors should review all risks related to achievement of the guidance reflected under “forward-looking statements” below and in the Company’s filings with the Securities and Exchange Commission. CONFERENCE CALL AND PRESENTATION In conjunction with this release, AeroVironment, Inc. will host a conference call today, Tuesday, June 24, 2025, at 4:30 pm Eastern Time that will be webcast live. Wahid Nawabi, chairman, president and chief executive officer; Kevin P. McDonnell, executive vice president and chief financial officer and Denise Pacioni, investor relations director, will host the call. Investors may access the call by registering via the following participant registration link up to ten minutes prior to the start time. Participant registration URL: https://register-conf.media-server.com/register/BI7c8f067ba6664132925fef2e6130428b Investors may also listen to the live audio webcast via the Investor Relations page of the AeroVironment, Inc. website, http://investor.avinc.com. Please allow 15 minutes prior to the call to download and install any necessary audio software. A supplementary investor presentation for the fourth quarter fiscal year 2025 can be accessed at https://investor.avinc.com/events-and-presentations. Audio Replay An audio replay of the event will be archived on the Investor Relations section of the Company's website at http://investor.avinc.com. ABOUT AEROVIRONMENT, INC. AeroVironment (“AV”) (NASDAQ: AVAV) is a defense technology leader delivering integrated capabilities across air, land, sea, space, and cyber. The company develops and deploys autonomous systems, precision strike systems, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities—built to meet the mission needs of today’s warfighter and tomorrow’s conflicts. With a national manufacturing footprint and a deep innovation pipeline, AV delivers proven systems and future-defining capabilities with speed, scale, and operational relevance. For more information visit: www.avinc.com. FORWARD-LOOKING STATEMENTS This press release contains "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 “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the impact of our ability to successfully close and integrate acquisitions into our operations and avoid disruptions from acquisition transactions that will harm our business; the recording of goodwill and other intangible assets as part of acquisitions that are subject to potential impairments in the future and any realization of such impairments; any actual or threatened disruptions to our relationships with our distributors, suppliers, customers and employees, including shortages in components for our products, including due to restrictions and sanctions imposed by foreign governments; the ability to timely and sufficiently integrate international operations into our ongoing business and compliance programs; reliance on sales to the U.S. government, including uncertainties in classification, pricing or potentially burdensome imposed terms for certain types of government contracts; availability of U.S. government funding for defense procurement and R&D programs; our ability to win U.S. and international government R&D and procurement programs, including foreign military financing aid; changes in the timing and/or amount of government spending, including due to continuing resolutions; adverse impacts of a U.S. government shutdown; our ability to realize the anticipated benefits of the BlueHalo transaction; our reliance on limited relationships to fund our development of HAPS UAS; our ability to execute contracts for anticipated sales, perform under such contracts and other existing contracts and obtain new contracts; risks related to our international business, including compliance with export control laws; the extensive and increasing regulatory requirements governing our contracts with the U.S. government and international customers; the consequences to our financial position, business and reputation that could result from failing to comply with such regulatory requirements; unexpected technical and marketing difficulties inherent in major research and product development efforts; the impact of potential security and cyber threats or the risk of unauthorized access to and resulting misuse of our, our customers’ and/or our suppliers’ information and systems; failure to remain a market innovator, to create new market opportunities or to expand into new markets; our ability to increase production capacity to support anticipated growth; unexpected changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; any increase in litigation activity or unfavorable results in legal proceedings, including pending class actions; or litigation that may arise from our recent acquisition of BlueHalo; our ability to respond and adapt to legal, regulatory and government budgetary changes; our ability to comply with the covenants in our loan documents; and our merger agreement with BlueHalo; our ability to attract and retain skilled employees, including retention of BlueHalo employees; the impact of inflation; and general economic and business conditions in the United States and elsewhere in the world; and the failure to establish and maintain effective internal control over financial reporting. For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. NON-GAAP MEASURES In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. See in the financial tables below the calculation of these measures, the reasons why we believe these measures provide useful information to investors, and a reconciliation of these measures to the most directly comparable GAAP measures. Statement Regarding Non-GAAP Measures The non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing our results that, when reconciled to the corresponding GAAP measures, help our investors to understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. In addition, management uses these non-GAAP measures to evaluate our operating and financial performance. Non-GAAP Earnings per Diluted Share We exclude acquisition-related expenses, amortization of acquisition-related intangible assets, equity method investment gains and losses, equity securities investments gains or losses, goodwill impairment and one-time non-operating items because we believe this facilitates more consistent comparisons of operating results over time between our newly acquired and existing businesses, and with our peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation and that intangible asset amortization will recur in future periods until such intangible assets have been fully amortized. Adjusted EBITDA (Non-GAAP) Adjusted EBITDA is defined as net income before interest income, interest expense, income tax expense (benefit) and depreciation and amortization, adjusted for the impact of certain other non-cash items, including amortization of implementation of cloud computing arrangements, stock-based compensation, acquisition related expenses, equity method investment gains or losses, equity securities investments gains or losses, goodwill impairment and one-time non-operating gains or losses. We present Adjusted EBITDA, which is not a recognized financial measure under U.S. GAAP, because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe this facilitates more consistent comparisons of operating results over time between our newly acquired and existing businesses, and with our peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation, intangible asset amortization will recur in future periods until such intangible assets have been fully amortized and that interest and income tax expenses will recur in future periods. In addition, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries. More News From AeroVironment, Inc.

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