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1. Company Snapshot

1.a. Company Description

AeroVironment, Inc.designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally.It operates through four segments: Unmanned Aircraft Systems (UAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS).


The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense and to international allied governments.It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems.In addition, the company offers small UAS products, including spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support, as well as multiple aircraft, hand-held ground control system, and spare parts and accessories.


Further, it develops high-altitude pseudo-satellite UAS systems.The company was incorporated in 1971 and is headquartered in Arlington, Virginia.

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1.b. Last Insights on AVAV

Breaking News: AeroVironment Inc recently announced the appointment of Sean T Woodward as Executive Vice President and Chief Financial Officer effective May 1 2026. The company has been on an acquisition spree strengthening its defense capabilities and enhancing tech integration. This push is expected to unlock new revenue opportunities. Additionally the counter-unmanned aircraft system market is expanding. With these developments and no recent earnings release to report AeroVironment seems to be positioning itself for future growth. Some analysts recommend a buy based on the companys growth path.

1.c. Company Highlights

2. AeroVironment Q3 Misses, but Backlog Booms

Revenue topped $408 million, a 143% jump YoY and 38% organic growth, yet fell short of forecasts. Adjusted EBITDA rose to $44 million (11% margin) and EPS hit $0.64 versus a $0.678 estimate (Staff). The P/E sits at –39.06, while EV/EBITDA is 66.71, underscoring the market’s valuation of future upside.

Publication Date: Apr -12

📋 Highlights
  • Revised Revenue Guidance:: FY26 revenue guidance adjusted to $1.85–$1.95 billion (prior: $2.0–$2.1 billion), driven by $151 million goodwill impairment from SCAR program stop-work order and supply chain delays.
  • Funded Backlog Growth:: $1.1 billion funded backlog (up from $900M YOY) with $4.6 billion total awards YTD, including $168 million Switchblade task order and $874 million Army UAS contract.
  • New Manufacturing Facility:: Salt Lake City plant (140,000 sq ft) to produce $2 billion annually, scaling production of AI-enabled drones and counter-UAS systems to meet demand spikes driven by conflicts like Iran.
  • Segment Performance:: Autonomous Systems revenue rose 25% ($279 million), while Space/Cyber segment fell 19% due to SCAR issues; gross margins at 27% (vs. 32% prior) but expected to improve to mid-30s in Q4.
  • Commercialization Strategy:: $0.5 billion potential from Golden Dome initiative and BADGER Phased Array system commercialization, with 80–90% of existing design reusable for cost-effective scaling.

Order Flow & Backlog Surge

The company’s funded backlog climbed to $1.1 billion, with $4.6 billion in year‑to‑date awards, driven largely by a $874 million U.S. Army UAS/Counter‑UAS contract.

New Salt Lake Facility

A 140,000‑sq‑ft plant in Salt Lake City is slated to launch in a year, projected to produce $2 billion of products annually, bolstering capacity amid rising demand.

Autonomous Systems Revenue

Commercially‑mature Puma AE and P550 UAS systems lifted revenue, and a $168 million Army task order for Switchblade 300/600 loitering munitions signals robust sales momentum.

Space & Directed Energy Highlights

Nearly one‑third of Q3 revenue came from Space, Cyber and Directed Energy, with two LOCUST laser systems delivered to the Army and plans to commercialize the platform.

Software & BlueHalo Integration

Investments in AV_Halo and BlueHalo integration are delivering synergies, and the Golden Dome initiative could generate ~$0.5 billion over three years.

Scar Program Setback

A stop‑work order forced a $151 million goodwill impairment; the customer’s convenience termination limits future revenue to <5% of FY 27, though legal fees and profit fees are expected.

Guidance Revision & Margin Outlook

FY 26 revenue guidance tightened to $1.85–$1.95 billion, adjusted EBITDA to $265–$285 million, with non‑GAAP EPS projected at $2.75–$3.10, and a margin outlook of 14–15%.

Demand from Geopolitical Tensions

Conflict in Iran is spurring orders for Freedom Eagle‑1, LOCUST, and Switchblade families, positioning the company to capture a growing market for autonomous and counter‑UAS solutions.

Investor Valuation Snapshot

With a P/S of 5.57 and a P/B of 2.05, the stock trades at a discount to peers, reflecting the market’s caution amid Q3 miss but optimism for backlog‑driven growth.

3. NewsRoom

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AI Eyes Move Onto The Counter-Drone Battlefield As Defense Tech Companies Race To Fuse Video With RF

Apr -13

Source: prnewswire.com

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Are AeroVironment's Acquisitions Powering Its Future Growth Path?

Apr -13

Source: zacks.com

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AV Appoints Sean Woodward as Chief Financial Officer

Apr -13

Source: businesswire.com

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AVAV Stock Down 52.1% in 3 Months: Should Investors Be Concerned?

Apr -10

Source: zacks.com

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The 3 Numbers You Need to Know About the Economics of War

Apr -09

Source: 247wallst.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of AeroVironment, Inc. - AVAV

Apr -09

Source: prnewswire.com

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AV Appoints Dr. Robert Smith as Chief Operating Officer

Apr -09

Source: businesswire.com

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U.S. politician makes 5th super suspicious military stock trade

Apr -08

Source: finbold.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.12%)

6. Segments

Small Unmanned Aircraft Systems

Expected Growth: 15%

AeroVironment's Small Unmanned Aircraft Systems' 15% growth is driven by increasing adoption in military and commercial markets, rising demand for surveillance and reconnaissance capabilities, and growing need for efficient and cost-effective solutions. Additionally, advancements in drone technology, expanding use cases in agriculture, infrastructure inspection, and public safety, and strategic partnerships and contracts also contribute to the growth.

Tactical Missile Systems

Expected Growth: 10%

AeroVironment's Tactical Missile Systems growth is driven by increasing demand for unmanned aerial systems, rising adoption of loitering munitions, and growing need for precision strike capabilities. Additionally, the company's focus on innovation, expanding international sales, and strategic partnerships contribute to its 10% growth.

All Other

Expected Growth: 8%

AeroVironment's All Other segment growth is driven by increasing adoption of its electric vehicle charging solutions, expansion of its PosiCharge industrial electric vehicle charging business, and growing demand for its unmanned aerial systems (UAS) from international customers, resulting in an 8% growth rate.

Medium Unmanned Aircraft Systems

Expected Growth: 13%

AeroVironment's Medium Unmanned Aircraft Systems' 13% growth is driven by increasing adoption in military and commercial markets, advancements in autonomous technology, and rising demand for surveillance and reconnaissance capabilities. Government contracts, foreign military sales, and expansion into new geographies also contribute to growth.

7. Detailed Products

Raven

A small unmanned aerial vehicle (UAV) designed for military and commercial use, providing real-time video and photographic reconnaissance.

Puma

A small, portable, and rugged UAV designed for military and commercial use, providing real-time video and photographic reconnaissance.

Wasp

A small, lightweight, and portable UAV designed for military and commercial use, providing real-time video and photographic reconnaissance.

Quantix

A hybrid vertical takeoff and landing (VTOL) UAV designed for commercial use, providing real-time video and photographic reconnaissance.

EV Charging Solutions

A range of electric vehicle (EV) charging solutions designed for commercial and residential use, providing fast and efficient charging.

TurboCord

A portable and compact EV charging cable designed for Level 1 and Level 2 charging.

8. AeroVironment, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AeroVironment, Inc. faces moderate threat from substitutes due to the presence of alternative solutions in the unmanned aircraft systems (UAS) market.

Bargaining Power Of Customers

AeroVironment, Inc. has a diverse customer base, including the US military and commercial customers, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

AeroVironment, Inc. relies on a few key suppliers for components and materials, which gives them some bargaining power, but the company's size and reputation help mitigate this risk.

Threat Of New Entrants

The UAS market is rapidly evolving, and new entrants with innovative technologies and business models pose a significant threat to AeroVironment, Inc.'s market share.

Intensity Of Rivalry

The UAS market is highly competitive, with several established players and new entrants vying for market share, leading to intense rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.81%
Debt Cost 6.12%
Equity Weight 77.19%
Equity Cost 6.12%
WACC 6.12%
Leverage 29.55%

11. Quality Control: AeroVironment, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Spirit AeroSystems

A-Score: 5.0/10

Value: 9.6

Growth: 1.1

Quality: 5.2

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
AeroVironment

A-Score: 5.0/10

Value: 6.9

Growth: 6.1

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Kratos Defense

A-Score: 4.5/10

Value: 2.4

Growth: 5.2

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Hexcel

A-Score: 4.3/10

Value: 1.6

Growth: 4.3

Quality: 4.3

Yield: 1.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
AAR

A-Score: 4.2/10

Value: 4.8

Growth: 4.8

Quality: 3.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Leonardo DRS

A-Score: 4.1/10

Value: 2.3

Growth: 3.7

Quality: 6.2

Yield: 1.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

194.52$

Current Price

194.52$

Potential

-0.00%

Expected Cash-Flows