AeroVironment (AVAV) Q4 2025 earnings summary

Executive summary

• Achieved record fiscal year 2025 revenue of $821 million, up 14% year-over-year, and record Q4 revenue of $275.1 million, up 40% year-over-year.

• Secured $1.2 billion in total bookings and ended the year with a funded backlog of $726.6 million, nearly doubling from the prior year.

• Completed BlueHalo acquisition on May 1, 2025, expanding capabilities and positioning as a premier defense tech prime.

• Launched new products including P550, Jump 20-X, and Red Dragon, targeting high-priority customer needs.

• Positioned for strong organic and acquisition-driven growth in fiscal 2026 and beyond.

Financial highlights

• FY25 revenue: $820.6 million (+14% YoY); Q4 revenue: $275.1 million (+40% YoY).

• FY25 adjusted EBITDA: $146.4 million (17.8% of revenue, +15% YoY); Q4 adjusted EBITDA: $61.6 million.

• FY25 GAAP net income: $43.6 million; Q4 GAAP net income: $16.7 million.

• Q4 adjusted EPS: $1.61, up from $0.43 in Q4 FY24; FY25 non-GAAP EPS: $3.28.

• Q4 GAAP gross margin was 36%, impacted by non-cash amortization; adjusted gross margin was 39%.

Outlook and guidance

• FY2026 revenue guidance is $1.9–$2.0 billion, with adjusted EBITDA of $300–$320 million and non-GAAP EPS of $2.80–$3.00.

• Revenue growth expected at nearly 15% over pro forma FY25; 70% visibility to midpoint of guidance.

• Adjusted gross margins expected at 29–31%, with R&D spend at 6–7% of revenue.

• Capital expenditures projected at 6–8% of revenue; deal and integration expenses of $40–$45 million.

• Autonomous systems segment revenue expected at $1.2–$1.4 billion (20%+ growth); space, cyber, and directed energy at $700–$900 million (double-digit growth).