AeroVironment (AVAV) AI Stock Analysis

• Market Cap: $14.54B
• Dividend Yield: N/A
• Average Volume (3M): 948.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• 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: 825,884
• 30 Day Avg. Volume: 948,220
• 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: 0.85
• Enterprise Value/Revenue: 11.36
• Enterprise Value/Gross Profit: 36.65
• Enterprise Value/Ebitda: 195.49
• 1Y Price Target: $389.46
• Price Target Upside: 38.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $336.00 ▲(19.59% Upside)

AeroVironment's strong revenue growth and positive earnings call sentiment are overshadowed by profitability challenges and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh on the stock's attractiveness. The company's robust pipeline and strategic acquisitions offer potential for future growth, but current financial and technical weaknesses limit the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective execution of strategic initiatives, enhancing long-term business prospects.

Strong Backlog

A robust backlog provides revenue visibility and stability, supporting sustained growth and operational planning over the coming quarters.

Innovative Product Introductions

New product introductions in high-demand areas position the company to capture emerging market opportunities, driving future growth and competitive advantage.

Negative Factors

Decreased Gross Margins

Declining gross margins may pressure profitability, suggesting challenges in cost management and pricing strategy that could affect long-term financial health.

Net Loss Reported

The net loss highlights financial strain from acquisitions, indicating potential risks in integration and cost control that could impact future profitability.

High Operating Expenses

Elevated operating expenses from acquisitions may erode margins and cash flow, challenging the company's ability to sustain long-term profitability.

AeroVironment Business Overview & Revenue Model

Company Description

AeroVironment, Inc. (AVAV) is a leading technology company specializing in unmanned aircraft systems (UAS), tactical missile systems, and advanced solutions for the defense and commercial sectors. With a focus on innovative drone technology, AeroVironment designs and manufactures a range of products including small and medium-sized UAVs, such as the Raven, Wasp, and Puma systems, which are utilized by military and government customers worldwide. The company also offers services related to its products, including training, support, and maintenance, contributing to its reputation as a key player in the aerospace and defense industries.

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 strong revenue growth but faces profitability and cash flow challenges. The balance sheet is robust with low leverage, but negative return on equity and cash flow issues highlight areas for improvement.

Income Statement

AeroVironment's revenue has shown strong growth, particularly with a 32.3% increase in the TTM period. However, profitability metrics such as the net profit margin and EBIT margin are negative, indicating challenges in cost management and operational efficiency. The gross profit margin has decreased from previous periods, suggesting pressure on pricing or cost increases.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.19 in the TTM period, indicating low leverage and financial stability. However, the return on equity is negative, reflecting the company's struggle to generate profits from its equity base. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

AeroVironment's cash flow situation is concerning, with negative operating and free cash flows in the TTM period. Despite a significant increase in free cash flow growth, the operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income.

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	103.20M	-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: Negative
• Last Price: 280.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 280.95 is below the 20-day moving average (MA) of 342.63, below the 50-day MA of 335.57, and above the 200-day MA of 226.41, indicating a neutral trend. The MACD of -16.14 indicates Positive momentum. The RSI at 27.45 is Positive, neither overbought nor oversold. The STOCH value of 8.60 is Positive, 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	68 Neutral	$9.27B	35.34	10.35%	1.05%	12.27%	33.16%
SARO	64 Neutral	$8.57B	44.70	9.86%	―	17.79%	815.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KTOS	61 Neutral	$12.23B	571.99	1.20%	―	14.00%	23.78%
AVAV	58 Neutral	$14.54B	―	-1.70%	―	44.04%	-129.81%
KRMN	58 Neutral	$7.97B	680.84	―	―	―	―
MRCY	52 Neutral	$4.26B	―	-2.24%	―	8.63%	72.72%

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.