AeroVironment (AVAV) Q1 2027 earnings summary

Executive summary

• Achieved record first-quarter revenue of $480.5 million, up 6% year-over-year, led by Autonomous Systems (AxS) sales and higher product and service revenue.

• Bookings reached $683 million with a book-to-bill ratio of 1.4; funded backlog hit a record $1.5 billion, up 37% year-over-year.

• Net loss narrowed significantly to $5.1 million from $67.4 million in the prior year, reflecting improved gross margin and lower SG&A and R&D expenses.

• Major contract wins across all product categories, including multi-mission ISR, precision strike, counter-UAS, and space/advanced technologies, contributed to backlog growth.

• Major acquisitions of BlueHalo and ESAero were integrated, expanding capabilities and contributing to revenue growth.

Financial highlights

• Revenue grew 6% year-over-year to $480.5 million, with product sales up $15.5 million and service revenue up $10.3 million.

• Adjusted EBITDA for Q1 was $53.4 million (11% margin), up from the prior year.

• Adjusted EPS was $0.59, up 84% year-over-year; GAAP net loss was $5.1 million.

• Gross margin improved to 30% (adjusted) and 26% (GAAP), with product gross margin at 40%.

• Operating cash flow was positive at $13 million, with free cash flow negative $36 million due to capital investments.

Outlook and guidance

• Fiscal 2027 revenue guidance reaffirmed at $2.125–$2.225 billion, representing 10% growth at midpoint.

• Adjusted EBITDA guidance of $305–$325 million and non-GAAP EPS of $3.02–$3.34.

• Revenue expected to be 45% in H1 and 55% in H2, with EBITDA and EPS weighted to the second half due to sales mix and margin improvement.

• R&D investment projected at 7–9% of revenue; CapEx at 12–14%.

• Revenue visibility for FY27 is 86% based on current backlog and anticipated orders.