AeroVironment (AVAV) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 and FY26 revenue, with Q4 at $642M and full-year at $1.98B, driven by strong demand for drones, counter-UAS, and space/cyber solutions.

• Organic revenue growth was 31% for Q4 and 30% for the full year, supported by major contract wins and portfolio diversification through acquisitions like BlueHalo.

• Bookings reached $2.7B for FY26, with a book-to-bill ratio of 1.4 and funded backlog at $1.2B.

• Major portfolio diversification and expansion into counter-UAS, space, and cyber technologies through acquisitions.

• Significant contract wins in loitering munitions, counter-UAS, and space, including LASSO, LRR, MRR, LRKI, and long-haul laser communications.

Financial highlights

• Q4 revenue was $642M, up 31% year-over-year; full-year revenue nearly $2B.

• Q4 adjusted EBITDA was $140M (22% margin); full-year adjusted EBITDA $286M (14% margin).

• Non-GAAP EPS for FY26 was $3.31; Q4 adjusted EPS was $1.84.

• Bookings totaled $2.7B for the year; funded backlog at $1.2B, unfunded backlog at $1.5B.

• Q4 adjusted gross margin was 34%; full-year adjusted gross margin 30%.

Outlook and guidance

• FY27 revenue guidance: $2.125B–$2.225B (10% growth at midpoint); adjusted EBITDA: $305M–$325M; non-GAAP EPS: $3.02–$3.34.

• FY27 GAAP net income forecast: $8M–$24M; GAAP EPS: $0.16–$0.48.

• Revenue and EBITDA expected to be weighted toward the second half of FY27 due to order timing and government funding delays.

• CapEx planned at 12–14% of revenue for production capacity expansion; R&D at 7–9% of revenue.

• Free cash flow not expected to be positive in FY27 due to high CapEx.