AeroVironment (AVAV) AI Stock Analysis

• Market Cap: $18.90B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: 44.04%
• EPS Growth: -129.81%
• Country: US
• Employees: 1,403
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.32
• Shares Outstanding: 49,932,205
• 10 Day Avg. Volume: 1,123,625
• 30 Day Avg. Volume: 1,290,319
• PEG Ratio: -3.38
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 5.17
• P/FCF Ratio: -175.91
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 11.36
• Enterprise Value/Gross Profit: 36.65
• Enterprise Value/Ebitda: 195.49
• 1Y Price Target: $392.33
• Price Target Upside: 3.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 68 Neutral
• Price Target: $411.00 ▲(8.12% Upside)

AeroVironment's strong revenue growth and positive earnings call sentiment are significant strengths, driving the overall score. However, profitability challenges and a negative P/E ratio weigh down the valuation, while technical indicators support a bullish outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for AeroVironment's products, enhancing its market position and supporting long-term financial health.

Strategic Partnerships

This strategic partnership with Korean Air enhances AeroVironment's market reach and potential for sustained revenue through local production and R&D.

Innovative Product Development

Continuous innovation in product offerings positions AeroVironment to capture emerging market opportunities and maintain competitive advantage.

Negative Factors

Profitability Challenges

Decreased gross margins indicate cost pressures, which could impact profitability and require strategic adjustments to maintain financial performance.

Cash Flow Issues

Negative cash flows highlight inefficiencies in converting revenue into cash, potentially limiting AeroVironment's ability to invest in growth opportunities.

High Operating Expenses

Rising operating expenses, largely due to acquisitions, may strain profitability unless offset by increased revenue or cost management strategies.

AeroVironment Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

AeroVironment generates revenue primarily through the sale of its unmanned aircraft systems and tactical missile systems to government and commercial customers. The company has a diverse revenue model that includes product sales, service contracts, and recurring revenue from maintenance and support services. Key revenue streams include direct sales of UAS and accessories, training services for military personnel, and long-term contracts with defense agencies. Significant partnerships, including collaborations with the U.S. Department of Defense and other international military organizations, enhance its earnings potential through sustained demand for advanced drone technology and tactical solutions.

AeroVironment Financial Statement Overview

Summary

AeroVironment shows a strong gross profit margin and a robust balance sheet with low leverage, indicating financial stability. However, the company faces challenges with cash flow management, as evidenced by negative free cash flow, which needs improvement to sustain growth.

Income Statement

AeroVironment has shown fluctuating revenue growth over the years, with a significant increase from 2022 to 2023. The gross profit margin for the latest year stands at around 46%, which is strong for the industry, indicating effective cost management. However, the net profit margin is relatively low at approximately 6.3%, reflecting higher operating and financing costs. The company has struggled with consistent profitability, as seen in the past negative net incomes, but recent improvements in EBIT and EBITDA margins show a positive trend towards operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of approximately 79%, indicating a solid financial foundation with low leverage. The debt-to-equity ratio is low at around 0.04, which suggests a conservative approach to debt financing. Return on Equity (ROE) for the latest year is approximately 4.9%, which, while positive, indicates room for improvement in generating returns from equity. The balance sheet reflects stability and a low-risk profile in terms of financial leverage.

Cash Flow

The cash flow situation presents challenges, with a negative free cash flow in the latest year due to negative operating cash flow. This indicates potential issues in converting revenue into cash. The free cash flow to net income ratio is negative, highlighting inefficiencies in cash generation relative to reported profits. However, the past positive operating cash flow years show potential for recovery if operational adjustments are made.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09B	820.63M	716.72M	540.54M	445.73M	394.91M
Gross Profit	336.59M	322.94M	283.93M	173.51M	141.24M	164.56M
EBITDA	63.11M	82.85M	102.50M	-79.08M	43.35M	54.24M
Net Income	-44.92M	43.62M	59.67M	-173.71M	-8.77M	33.83M
Balance Sheet
Total Assets	5.62B	1.12B	1.02B	824.58M	914.20M	928.57M
Cash, Cash Equivalents and Short-Term Investments	685.80M	40.86M	73.30M	132.86M	101.95M	180.71M
Total Debt	829.71M	64.29M	59.68M	162.82M	216.57M	222.77M
Total Liabilities	1.20B	234.06M	193.12M	273.61M	305.99M	316.46M
Stockholders Equity	4.43B	886.51M	822.75M	550.97M	607.97M	612.09M
Cash Flow
Free Cash Flow	-183.06M	-24.13M	-9.19M	-3.47M	-31.91M	75.27M
Operating Cash Flow	-153.40M	-1.32M	15.29M	11.40M	-9.62M	86.53M
Investing Cash Flow	-898.52M	-28.49M	-51.71M	-7.00M	-52.29M	-378.77M
Financing Cash Flow	1.66B	-2.86M	-22.85M	50.83M	-16.61M	194.16M

AeroVironment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 380.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAV, the sentiment is Positive. The current price of 380.13 is above the 20-day moving average (MA) of 376.06, above the 50-day MA of 304.34, and above the 200-day MA of 213.33, indicating a bullish trend. The MACD of 18.32 indicates Positive momentum. The RSI at 59.67 is Neutral, neither overbought nor oversold. The STOCH value of 44.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVAV.

AeroVironment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRS	―	$10.78B	43.54	9.99%	0.65%	11.43%	32.31%
AVAV	―	$18.90B	―	-1.70%	―	44.04%	-129.81%
SARO	―	$9.68B	72.68	7.25%	―	16.09%	―
KTOS	―	$15.39B	972.96	0.88%	―	7.76%	40.33%
KRMN	―	$11.13B	―	―	―	―	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	―	$4.77B	―	-2.57%	―	9.19%	72.88%

AeroVironment Corporate Events

AeroVironment Stockholders Approve Equity Plan Amendment

On September 25, 2025, AeroVironment, Inc. held its Annual Meeting of Stockholders, where stockholders approved the amendment and restatement of the company’s 2021 Equity Incentive Plan, increasing the shares reserved for issuance by 1,200,000. The plan, effective immediately upon approval, allows for up to 5,000,000 shares to be issued through incentive stock options. Additionally, the meeting saw the election of directors, ratification of Deloitte & Touche LLP as independent auditors, and approval of executive compensation, reflecting strong shareholder support for the company’s strategic initiatives.

The most recent analyst rating on (AVAV) stock is a Buy with a $350.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment’s Earnings Call Highlights Growth and Optimism

AeroVironment’s recent earnings call painted a picture of optimism and growth, despite some challenges. The company started the fiscal year with record revenue and strong bookings, driven by strategic acquisitions and innovative product introductions. While there were concerns about decreased gross margins and a reported net loss due to acquisition-related expenses, the overall sentiment remained positive. The highlights of the earnings call significantly outweighed the lowlights, indicating strong growth potential for AeroVironment.

AeroVironment Reports Record Revenue Amid BlueHalo Acquisition

AeroVironment, Inc. is a defense technology company specializing in autonomous systems, precision strike systems, and cyber and electronic warfare capabilities across various domains including air, land, sea, space, and cyber. The company recently reported its fiscal 2026 first-quarter results, highlighting a significant increase in revenue and backlog due to the acquisition of BlueHalo. AeroVironment achieved a record first-quarter revenue of $454.7 million, marking a 140% increase year-over-year, with BlueHalo contributing $235.2 million to this figure. Despite the revenue growth, the company reported a net loss of $67.4 million, primarily due to increased amortization and acquisition-related expenses. AeroVironment’s backlog reached a record $1.1 billion, reflecting strong demand for its innovative solutions. Looking ahead, the company remains optimistic about its growth prospects, driven by its ability to meet expedited delivery timelines and capture increasing demand in the defense sector.

AeroVironment Reports Record Revenue Amid BlueHalo Acquisition

On September 9, 2025, AeroVironment announced its fiscal 2026 first quarter results, reporting a record revenue of $454.7 million, a 140% increase year-over-year, largely due to the acquisition of BlueHalo. Despite the revenue growth, the company faced a net loss of $67.4 million, impacted by significant intangible amortization and non-cash purchase accounting expenses. The acquisition of BlueHalo contributed significantly to both product and service revenue, and the company reported a record backlog of $1.1 billion. AeroVironment remains optimistic about future growth opportunities, citing strong demand for its innovative solutions and its ability to scale manufacturing to meet expedited delivery timelines.

The most recent analyst rating on (AVAV) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment EVP Brett Hush Resigns for New Opportunities

On August 25, 2025, Brett Hush resigned as Executive Vice President and General Manager of Loitering Munition Systems at AeroVironment, effective September 5, 2025, to pursue other opportunities. His departure is not due to any disagreements with the company’s policies or practices, indicating a smooth transition for AeroVironment’s operations.

The most recent analyst rating on (AVAV) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.