AeroVironment (AVAV) AI Stock Analysis

• Market Cap: $13.06B
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 170.5
• Beta (1Y): 1.37
• Revenue Growth: 14.50%
• EPS Growth: -29.76%
• Country: US
• Employees: 1,403
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 1.61
• Shares Outstanding: 49,342,503
• 10 Day Avg. Volume: 861,921
• 30 Day Avg. Volume: 2,139,262
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 5.47
• Enterprise Value/Gross Profit: 13.59
• Enterprise Value/Ebitda: 72.15
• 1Y Price Target: $294.00
• Price Target Upside: 9.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 68 Neutral
• Price Target: $288.00 ▲(7.48% Upside)

AeroVironment's positive earnings call, highlighting significant growth and strategic acquisitions, is a major contributor to the score. The technical indicators support a bullish trend, while the high P/E ratio suggests potential overvaluation concerns. Financial stability is evident from a strong balance sheet but cash flow inefficiencies need addressing.

Positive Factors

Financial Flexibility

The refinancing provides AeroVironment, Inc. with substantial financial flexibility, boasting $600 million in cash and a $650 million 0% coupon convertible note.

International Growth Opportunities

Rising European demand and NATO's 5% GDP pledge for defense spending could unlock more international growth opportunities for AeroVironment.

Investor Sentiment

Investors are increasingly viewing AeroVironment shares as aligned with Kratos, suggesting at least 30% upside potential.

Negative Factors

Goodwill Impairment

$18.4 million impairment of goodwill is linked to weaker forecasted results in the Uncrewed Ground Vehicle business.

Sales Projections

The FY2026 sales and adjusted EBITDA outlook is weaker than expected, although management conservatism is considered a factor.

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 the sale of its unmanned aircraft systems and tactical missile systems primarily to government and defense organizations. A significant portion of its income comes from contracts with the U.S. Department of Defense, as well as international military customers. The company also earns from providing support services, including training and maintenance for its products. Additionally, it engages in research and development contracts to create advanced solutions, which further contribute to its earnings. Key partnerships and collaborations with defense agencies and commercial entities enhance AeroVironment's market reach and revenue potential.

AeroVironment Financial Statement Overview

Summary

AeroVironment shows strong operational efficiency with a solid gross profit margin, but faces challenges in consistent profitability and cash flow management. The balance sheet is robust with low leverage, suggesting financial stability, but negative free cash flow highlights issues in cash management.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	692.72M	716.72M	540.54M	445.73M	394.91M
Gross Profit	318.64M	283.93M	173.51M	141.24M	164.56M
EBITDA	40.80M	102.50M	-79.08M	43.35M	54.24M
Net Income	43.62M	59.67M	-173.71M	-8.77M	33.83M
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	34.29M	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	-1.32M	-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: Positive
• Last Price: 267.95
• 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 267.95 is above the 20-day moving average (MA) of 265.37, above the 50-day MA of 230.03, and above the 200-day MA of 182.34, indicating a neutral trend. The MACD of 9.75 indicates Positive momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.32 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
KTOS	72 Outperform	$9.89B	466.59	1.45%	―	7.32%	―
AVAV	68 Neutral	$13.06B	170.47	5.10%	―	14.50%	-29.76%
KRMN	65 Neutral	$6.67B	―		―	―	―
Sector *	59 Neutral	AU$1.62B	9.94	2.84%	3.53%	9.79%	5.94%
MRCY	58 Neutral	$3.24B	―	-4.45%	―	5.66%	52.71%
SPR	49 Neutral	$4.61B	―	81.63%	―	-2.91%	-109.95%
ACHR	49 Neutral	$6.55B	―	-73.89%	―	―	17.43%

AeroVironment Corporate Events

AeroVironment Raises $126.3 Million Through Share Offering

On July 3, 2025, AeroVironment, Inc. completed a public offering of 3,528,226 shares at $248.00 per share, with an additional 529,234 shares sold on July 15, 2025, through an over-allotment option, raising approximately $126.3 million in net proceeds. This capital influx is expected to bolster the company’s financial position and potentially enhance its market competitiveness in the aerospace and defense sector.

The most recent analyst rating on (AVAV) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Completes Stock and Convertible Notes Issuance

On July 1, 2025, AeroVironment, Inc. entered into agreements to issue and sell 3,528,226 shares of common stock and $747,500,000 of 0% Convertible Senior Notes due 2030. The issuance of these financial instruments was completed by July 3, 2025, with the notes governed by an indenture agreement. These financial moves are aimed at strengthening the company’s capital structure and may impact its market positioning by providing additional liquidity and flexibility for future operations.

The most recent analyst rating on (AVAV) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Announces Public Offerings to Repay Loans

On May 1, 2025, AeroVironment, Inc. completed the acquisition of BlueHalo Financing Topco, LLC, utilizing a $700 million term loan and $225 million from its revolving credit facility to settle BlueHalo’s existing debts and transaction expenses. Subsequently, on June 30, 2025, AeroVironment announced plans for public offerings of $750 million in common stock and $600 million in convertible senior notes to repay the aforementioned loans and for general corporate purposes, though the completion of these offerings remains subject to market conditions.

The most recent analyst rating on (AVAV) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Reports Record Q4 and FY 2025 Results

AeroVironment reported record financial results for the fourth quarter and fiscal year 2025, with a 40% increase in fourth-quarter revenue and a 14% rise in annual revenue. The company achieved significant growth in its Uncrewed Systems and Loitering Munition Systems, leading to record bookings of $1.2 billion. The acquisition of BlueHalo is expected to enhance AeroVironment’s position in the defense-technology sector, aligning with strategic priorities and expanding capabilities. Despite a goodwill impairment charge in the Uncrewed Ground Vehicle business, the company anticipates strong growth in fiscal year 2026, projecting revenue between $1.9 billion and $2.0 billion.

The most recent analyst rating on (AVAV) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Highlights BlueHalo Acquisition at Conference

On June 3, 2025, AeroVironment, Inc. presented an overview of its business at the William Blair Annual Growth Stock Conference in Chicago. The company highlighted its recent acquisition of BlueHalo, which closed on May 1, 2025, and is expected to enhance revenue and market position. The acquisition is anticipated to provide significant synergies and strengthen AeroVironment’s portfolio of mission-critical capabilities, positioning it as a diversified defense technology provider. The company also outlined its strategic focus on expanding into new markets and maintaining its role as a market innovator, despite the inherent risks and uncertainties involved.

The most recent analyst rating on (AVAV) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Completes Acquisition of BlueHalo

AeroVironment, Inc. announced that it will meet with investors from May 5-8, 2025, to discuss its recent acquisition of BlueHalo, which was completed on May 1, 2025. The acquisition is expected to drive significant growth and strengthen AeroVironment’s position in the defense technology sector. The company aims to leverage BlueHalo’s capabilities to enhance its product offerings and expand into new markets, despite potential risks and uncertainties associated with the integration process.