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AeroVironment, Inc.
$7.9B
Market Cap
97.8
P/E
2.54
PEG
-10.4%
ROCE
-10.0%
ROE
0.19
D/E
-15.7%
OPM
-63.8%
% from 52W High
15
α RS
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About

AeroVironment, Inc., a defense technology provider, 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.

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⭐ Superinvestors Holding AVAV
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Manager Shares Value % of Fund Period
Cathie Wood ARK Investment Management 559.3K $102.4M 0.80% Mar 2026
Jim Simons Renaissance Technologies LLC 48.0K $8.8M 0.01% Mar 2026
Steve Cohen Point72 Asset Management 2.20M $2.2M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED AeroVironment Q3 FY2026 revenue $408M, backlog $1.1B, full-year guidance lowered.
Revenue & Profitability
Q3 FY2026 revenue was $408 million (up 143% reported, 6% pro forma; legacy organic growth 38%). Adjusted EBITDA was $44 million (11% margin), and non-GAAP diluted EPS was $0.64. Full-year FY2026 guidance was revised to revenue of $1.85-$1.95 billion, Adjusted EBITDA of $265-$285 million, and non-GAAP EPS of $2.75-$3.10. A $151 million non-cash goodwill impairment was recorded related to the SCAR program.
Outlook
Management sees unprecedented demand for cost-efficient AI-enabled autonomous drones and counter-drone systems, driven by the Iran conflict and ongoing global security needs. Industry-wide government funding delays and the November shutdown affected Q3 orders, but the demand environment is described as 'generational'. The company expects a record fourth quarter and solid start to FY2027, with funding from new budgets expected to drive contracting upticks in Q1 and Q2 of next fiscal year.
Growth Drivers
Key growth drivers include the Switchblade family (300 Block 20, 600 Block 2, and new 400 variant for LASSO), Puma AE, JUMP 20/20-X, P550 UAS (with a recent $13 million LRR contract), Titan counter-UAS (production increasing 4x this year, targeting 10x by FY2030), Red Dragon one-way attack drones, and LOCUST directed energy systems (delivered to U.S. Army, proposed for Golden Dome). International demand is strong from Taiwan, Japan, South Korea, and Europe.
Balance Sheet & CapEx
AeroVironment is building a new 140,000 sq ft manufacturing facility in Salt Lake City, Utah, expected operational in about a year, with potential annual production capacity exceeding $2 billion worth of Switchblade or other products. The company is also scaling production of Titan counter-UAS (4x this year, plan for 10x by FY2030) and JUMP 20-X (3x in FY2027). Investment in the AV Halo software platform continues, and a Golden Dome for America initiative is expected to represent approximately $500 million in opportunity over three years.
Margins
Q3 adjusted gross margin was 27% (flat vs Q2), impacted by $40 million of high-margin revenue pushed to Q4 and a higher service mix from early-stage products. Management expects Q4 adjusted gross margins to improve to low- to mid-30%, with full-year margins in the high-20s% to low-30% range. Adjusted EBITDA margin was 11% in Q3, with full-year guidance of 14-15%. Longer term, as products commercialize, margins are expected to expand, with the business model targeting improved profitability.
Key Risks
Risks flagged include government funding delays and the impact of the government shutdown, which pushed orders to the right. The termination of the SCAR contract for convenience (non-cash goodwill impairment of $151 million) creates uncertainty and reduces revenue in the near term. The company also faces execution risk in scaling production while maintaining quality, and risk of building excess inventory if technology evolves rapidly.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-06-29
Record FY26 results with nearly $2B revenue and 31% Q4 organic growth, driven by strong demand for drones, counter-UAS, and space/cyber solutions. FY27 guidance targets 10% revenue growth, major CapEx for capacity expansion, and continued backlog strength amid government funding uncertainty.
Q3 2026 Q3 2026 2026-03-10
Q3 results missed expectations due to SCAR program termination and funding delays, but strong order flow and backlog position the company for record Q4 and FY27 growth. Revised FY26 guidance reflects lower revenue and EBITDA, yet demand for autonomous and counter-UAS products remains robust.
Q2 2026 Q2 2026 2025-12-09
Record Q2 results with $3.5B in contract awards, $1.4B bookings, and $473M revenue, driven by strong demand for autonomous and counter-UAS products. Fiscal 2026 guidance raised, with significant growth expected in Q4 as new contracts and funding materialize.
Q1 2026 Q1 2026 2025-09-09
Record Q1 revenue and bookings driven by BlueHalo acquisition and organic growth, with strong performance across both business segments. FY26 guidance maintained, supported by robust backlog and new contract wins in space, counter-UAS, and missile defense. Significant investments in manufacturing and software position the company for continued growth.
Q4 2025 Q4 2025 2025-06-24
Record FY25 revenue and bookings, strong Q4 growth, and a major acquisition position the company for 15%+ revenue growth in FY26. New products and expanded international demand drive optimism, with robust guidance and increased CapEx to support scaling.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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