REFILE-AeroVironment's Q2 revenue up 151%, slightly above estimates

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Overview

• Defense technology leader's fiscal Q2 revenue rose 151% yr/yr, slightly above analyst expectations

• Company swung to an operating loss in fiscal Q2 due to increased non-cash purchase accounting expenses

• Fiscal Q2 gross margin fell to 22% from 39%, impacted by amortization expenses

Outlook

• AeroVironment expects fiscal 2026 revenue between $1.95 bln and $2.0 bln

• Company forecasts fiscal 2026 net loss between $38 mln and $30 mln

• AeroVironment anticipates fiscal 2026 adjusted EBITDA of $300 mln to $320 mln

Result Drivers

• BLUEHALO ACQUISITION - Significant revenue contribution from BlueHalo acquisition, adding $245.1 mln to Q2 results

• RECORD BOOKINGS - Co reported all-time high bookings of $1.4 bln, indicating strong demand and future revenue potential

• INCREASED EXPENSES - Operating loss impacted by $48.2 mln in intangible amortization and other acquisition-related expenses

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for AeroVironment Inc is $403.00, about 42.7% above its December 8 closing price of $282.47

• The stock recently traded at 68 times the next 12-month earnings vs. a P/E of 63 three months ago

Press Release: ID:nBw5fMTbva

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)