AeroVironment (AVAV) Reports Fiscal 2026 Second Quarter Earnings Results

AeroVironment, Inc. (AVAV) today announced its financial results for the fiscal quarter, revealing a challenging performance. The company reported a quarterly revenue of $4.669 million, significantly below the estimated $468.7 million, marking a substantial miss of $464 million. Additionally, AeroVironment posted a diluted earnings per share of -$0.34, falling short of the expected $0.78, resulting in a disappointing earnings miss of $1.12.

Key Highlights

• Record second quarter revenue of $472.5 million, up 151% year-over-year.
• Bookings of $1.4 billion with a book-to-bill ratio of 2.9.
• Acquisition of BlueHalo contributed significantly to revenue.
• Gross margin decreased to 22% from 39% due to increased service revenue and amortization expenses.
• Fiscal 2026 revenue outlook revised to between $1.95 billion and $2.0 billion.

Summary

AeroVironment, Inc. reported remarkable financial results for the second quarter of fiscal 2026, achieving a record revenue of $472.5 million, which represents a 151% increase compared to the same quarter last year. This growth was significantly bolstered by the acquisition of BlueHalo, which alone contributed $245.1 million to the revenue. The company also reported strong bookings of $1.4 billion, resulting in a book-to-bill ratio of 2.9, indicating robust demand for its products and services. CEO Wahid Nawabi remarked, “AV is operating from a position of strength as evidenced by our record second quarter results, all-time high bookings and long-term contract wins.”

Despite the impressive revenue growth, AeroVironment experienced a net loss of $(17.1) million for the quarter, primarily due to substantial intangible amortization expenses related to the BlueHalo acquisition. The gross margin fell to 22% from 39% in the previous year. Looking ahead, the company has revised its revenue outlook for fiscal 2026 to between $1.95 billion and $2.0 billion, while also projecting a net loss for the year. Management remains optimistic about future growth, supported by a robust backlog of $1.1 billion and a commitment to addressing evolving defense needs through strategic partnerships and innovation.

AeroVironment, Inc. (AVAV) has experienced a rollercoaster ride in its stock price, with a notable 6.22% increase over the past week, suggesting a potential rebound after a challenging month where the stock fell by 14.63%. Over the last three months, AVAV has shown impressive resilience, climbing 21.83%, and over the past six months, it has surged by 43.79%. However, the one-year performance is particularly striking, with a remarkable 75.43% increase, indicating strong investor confidence despite some underlying financial challenges. The company’s price-to-earnings ratio stands at a staggering -416.05, reflecting significant losses, while the net profit margin remains negative at -1.45%. Additionally, the two-year compound annual growth rate (CAGR) for earnings per share is troubling at -32.32%, although revenue has grown at a robust 36.31%. With a return on invested capital of just 3.41%, investors may be cautious about the sustainability of this growth. Overall, while the stock’s recent price movements are encouraging, the fundamental metrics suggest that AeroVironment still has significant hurdles to overcome.

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.