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AeroVironment Misses Q3, Cuts 2026 Outlook as SCAR Options Fall Away

Management flagged SCAR-related awards as unlikely, raising questions over roughly $1.4 billion within a $3 billion unfunded backlog.

Overview

  • Q3 EPS was $0.64 on revenue of $408 million, both missing Wall Street estimates of roughly $0.68–$0.72 and $476–$484 million.
  • The company lowered fiscal 2026 guidance to adjusted EPS of $2.75–$3.10 and revenue of $1.85–$1.95 billion.
  • AeroVironment said SCAR contract options in its unfunded backlog are no longer expected to be awarded, and the Space, Cyber, and Directed Energy segment fell 19%.
  • Unfunded backlog stands near $3 billion with about $1.4 billion tied to SCAR, while bookings reached $2.1 billion and funded backlog rose to $1.1 billion.
  • Shares dropped roughly 8–9% after hours as gross margin contracted to 27% from 40% and reported revenue growth of 143% reflected the BlueHalo acquisition, with comparable growth near 38%.