Sponsored by SPX Communication Technologies (TCI & ECS)
www.tcibr.com
www.enterprisecontrol.co.uk
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09 Sep 25. AeroVironment, Inc. (NASDAQ: AVAV) (“AeroVironment” or the “Company”) reported today financial results for the fiscal first quarter ended August 2, 2025.
First Quarter Highlights:
- Successfully closed our acquisition of BlueHalo, which contributed $235.2m of revenue in the first quarter
- Record first quarter revenue of $454.7m up 140% year-over-year; legacy revenue of $219.5 m up 16% year-over year
- Record first quarter backlog of $1.1bn and bookings of $399.0m
- Visibility of 82% to the midpoint of fiscal year 2026 revenue guidance range as of September 9, 2025
“As we complete the first quarter of our new fiscal year, we are excited by the continued strength across both our Autonomous Systems and Space, Cyber and Directed Energy segments with record revenue and backlog,” said Wahid Nawabi, AeroVironment chairman, president and chief executive officer. “With a broad and diversified portfolio of solutions, we are confident in our ability to deliver best-in-class solutions that are aligned to our customers’ highest priorities in all domains across air, land, sea, space and cyber.”
Nawabi continued, “AV is exceptionally well positioned to capture growing demand due to our innovative solutions and manufacturing capacity that can quickly scale to meet our customers’ expedited delivery timelines. Our continued strong results underscore our confidence in the future of AV, and we are optimistic about the growth opportunities that lie ahead as we redefine the future of defense.”
FISCAL 2026 FIRST QUARTER RESULTS
Revenue for the first quarter of fiscal 2026 was $454.7m, an increase of 140% as compared to $189.5m for the first quarter of fiscal 2025, due to higher product sales of $154.0m and higher service revenue of $111.2m. The acquisition of BlueHalo on May 1, 2025 contributed to $123.7m and $111.5 m of the current quarter product and service revenue, respectively. From a segment standpoint, Autonomous Systems (“AxS”) recorded revenue of $285.3 m and Space, Cyber and Directed Energy (“SCDE”) recorded revenue of $169.4m.
Gross margin for the first quarter of fiscal 2026 was $95.1 m, an increase of 17% as compared to $81.5m for the first quarter of fiscal 2025, reflecting higher product margin of $8.9m and higher service gross margin of $4.8m. Gross margin in the fiscal 2026 first quarter was negatively impacted by $37.4 m of intangible amortization expense and other related non-cash purchase accounting expenses in the first quarter of fiscal 2026, as compared to $3.7m in the first quarter of fiscal 2025. As a percentage of revenue, gross margin fell to 21% from 43%, primarily due to increased amortization and other non-cash purchase accounting expenses and an increase in the proportion of service revenue resulting from the BlueHalo acquisition.
Loss from operations for the first quarter of fiscal 2026 was $(69.3)m as compared to income from operations of $23.1m for the first quarter of last fiscal year. The current quarter was negatively impacted by $79.7m of intangible amortization and other related non-cash purchase accounting expenses in the first quarter of fiscal 2026 as compared to $4.8m in the first quarter of fiscal 2025. The decrease year-over-year was primarily due to an increase in selling, general and administrative (“SG&A”) expense of $97.5 m, which includes an increase of $41.2 m of intangible amortization, an increase of $23.7 m of acquisition related expenses and incremental headcount resulting from our acquisition of BlueHalo, which closed on May 1, 2025, and an increase in research and development (“R&D”) expense of $8.5 m, partially offset by an increase in gross margin of $13.7 m.
Other loss, net, for the first quarter of fiscal 2026 was $15.1 m, as compared to $0.5 m for the first quarter of fiscal 2025. The increase year-over-year was primarily due to an increase in interest expense related to the term and revolver facility loans obtained in conjunction with the BlueHalo acquisition on May 1, 2025 and subsequently settled with proceeds from the issuances of convertible notes and equity in July 2025.
Benefit from income taxes for the first quarter of fiscal 2026 was $(15.2) m, as compared to provision for income taxes of $1.5m for the first quarter of last fiscal year. The decrease year-over-year was primarily due to the loss before income taxes.
Net loss for the first quarter of fiscal 2026 was $(67.4) m, or $(1.44) per diluted share, as compared to net income of $21.2m, or $0.75 per diluted share, in the prior-year period, respectively. The current quarter was negatively impacted by $79.7 m, or $1.34 per diluted share, of intangible amortization and other related non-cash purchase accounting expenses in the first quarter of fiscal 2026 as compared to $4.8m, or $0.13 per diluted share, in the first quarter of fiscal 2025.
Non-GAAP adjusted EBITDA for the first quarter of fiscal 2026 was $56.6 m and non-GAAP earnings per diluted share were $0.32, as compared to $37.2 m and $0.89, respectively, for the first quarter of fiscal 2025.
BACKLOG
As of August 2, 2025, funded backlog (defined as remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $1.1bn, as compared to $726.6m as of April 30, 2025. Bookings (defined as firm orders entered into) during the quarter ending August 2, 2025 were $399.0 m. We have visibility of 80% of fiscal year 2026 revenue.
FISCAL 2026 — OUTLOOK FOR THE FULL YEAR
For fiscal year 2026, the Company continues to expect revenue of between $1.9 bn and $2.0 bn, net loss of between $(77)m and $(72)m, non-GAAP adjusted EBITDA of between $300m and $320m, loss per diluted share of between $(1.63) and $(1.53) and non-GAAP earnings per diluted share, which excludes amortization of intangible assets, other non-cash purchase accounting expenses and equity securities investments gains or losses, of between $3.60 and $3.70. (Source: BUSINESS WIRE)
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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR).
For more information visit www.tcibr.com and www.enterprisecontrol.co.uk
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