Stock Information
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AVAVAeroVironment Inc.

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Company Info

CEO

Wahid Nawabi

Location

Virginia, USA

Exchange

Nasdaq

Website

https://avinc.com

Summary

AeroVironment, Inc.

Company Info

CEO

Wahid Nawabi

Location

Virginia, USA

Exchange

Nasdaq

Website

https://avinc.com

Summary

AeroVironment, Inc.

AI Insights for AVAV
2 min read

Quick Summary

AeroVironment Inc. is a leading provider of unmanned aircraft systems (UAS), tactical missile systems, and related services and support to both U.S. Department of Defense agencies and allied international governments. With headquarters in Monrovia, Virginia, the company specializes in designing, engineering, manufacturing, and upgrading unmanned aerial and aircraft platforms. AeroVironment’s portfolio expands across both hardware and software segments, focusing on advanced robotics and autonomous technologies that serve critical military and commercial applications. The organization employs over 1,200 staff, reinforcing its strong engineering and project execution capabilities. Its main business is heavily skewed toward the defense sector, supplying cutting-edge drone solutions tailored for reconnaissance, surveillance, and combat missions.

The Bull Case

  • AeroVironment’s key strengths include its leadership in unmanned aircraft technology and proven track record with the U.S.
  • Department of Defense and allied governments.
  • The company boasts innovative drone and missile systems that are at the forefront of modern military applications, underpinned by strong engineering talent and proprietary intellectual property.
  • Its extensive order backlog and record contract wins demonstrate a robust demand pipeline.
  • Additionally, recent acquisitions have enhanced its technological capabilities and market reach, allowing it to provide integrated hardware and software solutions.

The Bear Case

  • The company’s main vulnerabilities stem from its heavy reliance on the U.S.
  • defense market, making it susceptible to government funding changes and political shifts.
  • Margin pressures have emerged due to rapid expansion, ERP implementation costs, and a less favorable product-service revenue mix.
  • AeroVironment trades at a notably high valuation relative to peers, which increases shareholder risk and sets high expectations for future performance.
  • Integration challenges from recent acquisitions could stretch management resources and disrupt operational efficiency.

Key Risks

  • AeroVironment faces considerable internal and external risks.
  • Reliance on a small group of government clients, primarily within the U.S.
  • defense sector, exposes the company to contract timing risks and potential funding cuts.
  • High valuation multiples create vulnerability to price corrections if growth targets are not met.

What to Watch

UpcomingIn the most recent quarter, AeroVironment secured record-breaking contract awards totaling $3.5 billion and reported a 151% year-over-year revenue increase to $472.5 million.
UpcomingHowever, while revenue numbers beat estimates, profit and key margin figures fell short of analyst expectations due to product mix and additional costs related to ERP rollout.
UpcomingFull-year revenue guidance saw an upward revision, but outlooks for earnings per share and EBITDA were trimmed.
ExpectedFor the upcoming quarter, analysts predict continued strong top-line growth boosted by government contracts, with anticipated Q4 2025 revenue of approximately $242.7 million and expected EPS at $1.22.

Price Drivers

  • AeroVironment’s stock price is primarily driven by large government contract awards, quarterly earnings results, and changes in U.S.
  • and international defense spending policies.
  • The company’s rapid revenue growth, driven by strong demand for its unmanned systems, has led to significant share price appreciation over the past year.
  • Positive announcements such as record contract wins, upgrades to product platforms, and key acquisitions provide short-term catalysts that positively impact valuation.

Recent News

  • Recent news around AeroVironment centers on its rapid growth following robust U.S.
  • Army and Air Force contract wins, which have resulted in substantial share price appreciation over the last twelve months.
  • The company reported both record revenues and significant new orders but faced a decline in gross margins and an EPS miss, triggering a partial retracement in the stock.
  • Market response has included both upgrades—driven by favorable regulatory developments and acquisition announcements—and warnings about the high valuation.

Market Trends

  • The broader market environment for AeroVironment is characterized by accelerating global defense budgets and rising demand for autonomous and unmanned systems.
  • Geopolitical instability and renewed focus on military modernization are leading to record government procurement, particularly in the U.S.
  • and allied nations.
  • Regulatory shifts, such as eased export controls on drones, are opening up new international opportunities for U.S.-based manufacturers.

AI-generated summary. Not investment advice. DYOR.

Community Research

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Topics: Company overview • Products • Competitors • Strengths & Risks

Symbol's posts

avatar
@JaneWilliams 1 month ago

Drone Tech Already Here, Not Sci-Fi

Drone Tech Already Here, Not Sci-Fi

Drone tech doesn’t even feel futuristic anymore. We’re already seeing it used for rescue missions, tough terrains, high-altitude areas, defense, even movie shoots. It’s kind of crazy how normal it’s becoming.

I’ve been looking at a few names like on the defense side, with government contracts, and which feels more early-stage and risky. Not saying any of these are winners just trying to understand the space better.

Do you think drones are a real long-term theme, or still too early? Curious what others are watching here.

avatar
@JaneWilliams 1 month ago

Drones: AeroViroment vs Ondas Holding vs Red Cat Holdings vs Unusual Machines

Drones: AeroViroment vs Ondas Holding vs Red Cat Holdings vs Unusual Machines

As you can tell from the ticker charts, drones are in the hype again, and it's deserved as the sector will only increase getting utilized until a new form of warfare is invented. I'm starting to do research between these four unprofitable companies at the moment:
- By far the most established and closest to turning profitable, high Inst Ownership, all for less room to grow. Also high Insider Ownership however. Zero hype.
- Contender for worst financials in my opinion, by far the highest hype value. Very low Insider and Inst Ownership. Feels very overvalued but will never buy puts.
- Meh financials. Medium Inst and Insider Ownership. Hype but I don't agree. The ticker is there but I can't see the point.
- Newest, smallest, highest potential for growth. Currently horrible financials, and easily the best return if they all perform the same, but Trump Jr. advisory board sellout scares me a lot and I can't bring myself to trust it.
+ Definitely should have included
I'd love to hear y'alls thoughts on them and any additions you might have to the screener.

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@democratiCrayn 2 months ago

KeyBanc names top space and defense stocks for 2026

KeyBanc names top space and defense stocks for 2026

post thumbnail

finance.yahoo.com

| These are the best aerospace and defense stocks to own in 2026: KeyBanc

avatar
@ShallowLoving 2 months ago

Fed cuts rates by 25bps, markets rally and small caps hit ATH

Fed cuts rates by 25bps, markets rally and small caps hit ATH

post thumbnail

www.investopedia.com

| Markets News, Dec. 10, 2025: Stocks Surge After Federal Reserve Cuts Interest Rates; S&P 500 Just Misses New Closing Record

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@IsabelLynn 2 months ago

When it comes to defence tech: these two stand out.

When it comes to defence tech: these two stand out.

AeroVironment vs. Kratos Defense & Security Solutions : AeroVironment is already selling battlefield-proven drones shaping modern combat, while Kratos is building futuristic unmanned jets that look straight out of a sci-fi movie: so which defense innovator would you bet on: the one winning today’s wars or the one designing tomorrow’s?

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