AeroVironment (AVAV) AI Stock Analysis

• Market Cap: $12.73B
• Dividend Yield: N/A
• Average Volume (3M): 999.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 79.89%
• EPS Growth: -171.81%
• Country: US
• Employees: 1,403
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.44
• Shares Outstanding: 49,925,877
• 10 Day Avg. Volume: 931,634
• 30 Day Avg. Volume: 999,709
• 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: 1.46
• Enterprise Value/Revenue: 13.60
• Enterprise Value/Gross Profit: 54.01
• Enterprise Value/Ebitda: 162.08
• 1Y Price Target: $385.29
• Price Target Upside: 51.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $266.00 ▲(4.31% Upside)

The score is held back primarily by weak current financial performance (losses and negative operating cash flow) and bearish-to-neutral technical momentum (negative MACD and trading below key moving averages). These are partially offset by a strong, confident earnings call with raised guidance, record bookings/awards, and improved manufacturing/capacity outlook; valuation remains a headwind due to negative earnings and no dividend yield provided.

Positive Factors

Revenue Growth

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

Contract Awards

Record contract awards bolster AeroVironment's future revenue streams and highlight its competitive edge in securing large-scale defense contracts.

Manufacturing Expansion

Expanding manufacturing capacity supports increased production capabilities, aligning with future growth and demand for AeroVironment's products.

Negative Factors

Operational Inefficiencies

Operational inefficiencies from ERP upgrades can disrupt business processes, impacting productivity and profitability in the short to medium term.

Declining Gross Margins

Decreasing gross margins suggest cost pressures or pricing challenges, which could affect AeroVironment's profitability if not addressed.

Negative Cash Flow

Negative cash flow indicates challenges in covering operational expenses, potentially limiting AeroVironment's ability to invest in growth initiatives.

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 through several key streams, primarily from the sale of its UAV systems and related services to military and government customers. The company benefits from long-term contracts and recurring revenue from maintenance and support services. Additionally, AeroVironment has a growing presence in the commercial sector, particularly through its EV charging solutions, which are sold to businesses and municipalities. Strategic partnerships with defense contractors and government agencies enhance its revenue potential, while ongoing investments in research and development ensure innovative product offerings that meet evolving market demands.

AeroVironment Financial Statement Overview

Summary

AeroVironment faces significant financial challenges with declining revenue and profitability. The income statement shows a negative net profit margin and reduced gross profit margin. The balance sheet is stable with low leverage, but returns on equity are negative. Cash flow issues persist, although there is some improvement in free cash flow growth.

Income Statement

AeroVironment's income statement shows a challenging period with a negative net profit margin of -4.14% TTM, indicating losses. The gross profit margin has decreased to 30.99% TTM from 39.35% in the previous annual report, reflecting reduced profitability. Revenue growth has also declined by 42% TTM, suggesting significant revenue contraction. These factors highlight a need for strategic improvements to regain profitability.

Balance Sheet

The balance sheet reflects a stable financial structure with a low debt-to-equity ratio of 0.19 TTM, indicating conservative leverage. However, the return on equity is negative at -2.55% TTM, pointing to inefficiencies in generating returns from equity. The equity ratio remains strong, suggesting a solid capital base, but the company needs to improve its return metrics.

Cash Flow

Cash flow analysis reveals challenges with negative operating cash flow of -$194.8 million TTM and a free cash flow to net income ratio of 1.19, indicating cash flow issues despite net losses. Free cash flow growth is positive at 13.19% TTM, showing some improvement, but overall cash flow management requires attention to support operations and growth.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	820.63M	716.72M	540.54M	445.73M	394.91M
Gross Profit	322.94M	283.93M	173.51M	141.24M	164.56M
EBITDA	104.39M	109.45M	61.20M	51.88M	69.54M
Net Income	43.62M	59.67M	-176.21M	-4.19M	23.33M
Balance Sheet
Total Assets	1.12B	1.02B	824.58M	914.20M	928.57M
Cash, Cash Equivalents and Short-Term Investments	40.86M	73.30M	132.86M	101.95M	180.71M
Total Debt	64.29M	59.68M	162.82M	216.57M	222.77M
Total Liabilities	234.06M	193.12M	273.61M	305.99M	316.46M
Stockholders Equity	886.51M	822.75M	550.97M	607.97M	612.09M
Cash Flow
Free Cash Flow	-24.13M	-9.19M	-3.47M	-31.91M	75.27M
Operating Cash Flow	-1.32M	15.29M	11.40M	-9.62M	86.53M
Investing Cash Flow	-28.49M	-51.71M	-7.00M	-52.29M	-378.77M
Financing Cash Flow	-2.86M	-22.85M	50.83M	-16.61M	194.16M

AeroVironment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 255.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAV, the sentiment is Negative. The current price of 255 is below the 20-day moving average (MA) of 257.14, below the 50-day MA of 302.46, and above the 200-day MA of 240.33, indicating a neutral trend. The MACD of -12.91 indicates Negative momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 87.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVAV.

AeroVironment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRS	70 Outperform	$9.12B	34.77	10.35%	1.04%	12.27%	33.16%
SARO	67 Neutral	$9.75B	52.85	9.86%	―	17.79%	815.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KRMN	62 Neutral	$10.26B	905.96	―	―	―	―
KTOS	60 Neutral	$13.12B	632.74	1.20%	―	14.00%	23.78%
MRCY	57 Neutral	$4.46B	-131.83	-2.24%	―	8.63%	72.72%
AVAV	54 Neutral	$12.73B	-203.35	-2.64%	―	79.89%	-171.81%

AeroVironment Corporate Events

AeroVironment Expands Operations with Long-Term Utah Facility Lease

On December 18, 2025, AeroVironment, Inc. signed a long-term lease for approximately 130,733 square feet of space at 4387 West 2100 South in West Valley City, Utah, with base monthly rent starting at $146,420.96 and escalating through the 126-month term, and with the company also responsible for a proportionate share of operating expenses such as property taxes. The lease includes two options to extend the term for additional five-year periods at then-current market rents (but not less than the final month’s base rent), indicating a significant and potentially enduring expansion of AeroVironment’s operational footprint that could support future growth and capacity needs in its defense and unmanned systems business.

The most recent analyst rating on (AVAV) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Reports Record Q2 Revenue Growth

AeroVironment, Inc. reported record revenue of $472.5 million for the second quarter of fiscal 2026, marking a 151% increase year-over-year, largely driven by the acquisition of BlueHalo. Despite the revenue growth, the company experienced a net loss of $17.1 million due to increased intangible amortization and acquisition-related expenses. The company’s backlog reached $1.1 billion, reflecting strong bookings and a book-to-bill ratio of 2.9, positioning AeroVironment as a key player in the evolving defense sector.

The most recent analyst rating on (AVAV) stock is a Buy with a $400.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Updates Bylaws to Enhance Governance

On November 20, 2025, AeroVironment, Inc. amended its bylaws to introduce several changes. These amendments include a right to cure process for director nomination deficiencies, the ability for the Board to manage stockholder meetings, updates to align with Delaware law, and provisions for special meetings and severability, impacting the company’s governance structure.

The most recent analyst rating on (AVAV) stock is a Buy with a $415.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

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.