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AeroVironment Posts Strong Q4 Beat but Gives Softer EPS Outlook

Strong quarterly sales and a bigger funded backlog point to rising defense demand ahead of a July 8 investor day.

Overview

  • AeroVironment, which reported results Monday, delivered a fiscal Q4 beat with revenue of about $641.6 million and adjusted EPS of $1.84, driven mainly by its Autonomous Systems unit.
  • Funded backlog rose to roughly $1.2 billion year‑over‑year and recent acquisitions BlueHalo and ESAero contributed about $282 million to the quarter’s revenue.
  • Management set fiscal 2027 revenue guidance of $2.13 billion to $2.23 billion and adjusted EPS guidance of $3.02 to $3.34, with the EPS range below current analyst consensus and seen as the main disappointment.
  • The terminated U.S. Space Force SCAR Badger contract (estimated at $1.7 billion) and an $89 million goodwill restatement tied to the space unit remain unresolved and have prompted securities lawsuits, creating a material overhang on the company’s outlook.
  • Investors reacted positively to the beat, sending shares up sharply in after‑hours and premarket trade, and the results underscore rising demand for expendable drones and counter‑drone systems that could reshape defense procurement and production plans.