ARLINGTON, Va.--(BUSINESS WIRE)--AeroVironment’s Tomahawk product line has been awarded a $2.67 million contract from Advanced Technology International (ATI) that will be managed by the U.S. Marine Corps Warfighting Lab (MCWL). This contract supports the Marine Corps’ Force Design 2030 and other Department of Defense (DoD) initiatives of enhancing lethality and mission success across the warfighting functions. Under the contract, AeroVironment will deliver prototype Tomahawk Grip Tab Active (Grip TA) con ...

James Rolevink AeroVironment (NASDAQ:AVAV) continues to thrive in the rapidly evolving aerospace and defense industries. The company, known for being one of the pioneers in unmanned aircraft systems (UAS) and tactical missile systems, continues to be at the forefront of an industry that has become increasingly vital to the military and commercial sectors. Aerovironment has grown dramatically compared to when I had previously written about the company. Since then, small UAS and tactical missile systems h ...

Diversifying your portfolio can help you tap into more opportunities and mitigate the risk of significant losses. While tech stocks are often favored due to their high-growth potential, these stocks can fall the hardest during an economic slowdown.Investors looking to take some risk off their portfolios while giving themselves the potential for good returns may want to consider defense stocks. These corporations have government contracts and other revenue streams less likely to falter during slowdowns. Inve ...

Outperforming the S&P 500 is the holy grail achievement for most investors. After all, who wouldn’t want to beat the benchmark that most mutual funds and ETFs fail to surpass annually? However, while we all have dreams of our stocks soaring well beyond the broader market, the reality is that it’s extremely difficult to consistently pick winners that can deliver market-trouncing returns over the long-run.Still, there are exceptional stocks with distinct competitive advantages operating in rapidly-growing ind ...

ARLINGTON, Va.--(BUSINESS WIRE)--AeroVironment, Inc. announced today the first successful multi-drop, live fire GPS-guided Shryke munitions from the VAPOR® 55 MX, all-electric unmanned aircraft system in collaboration with Corvid and L3Harris Technologies. The VAPOR 55 MX carried four rounds simultaneously and flawlessly showcased the live fire effects of this capability. The integration of Shryke munitions on the VAPOR 55 MX allows for multiple targets to be designated in one single flight. “Shryke’s size ...

Financial Data and Key Metrics - Q2 2024 revenue reached $180.8 million, up 62% YoY, marking a record Q2 for the company [6] - Adjusted EBITDA for Q2 2024 was $40 million, a significant increase from $7 million in Q2 2023 [25] - Net income for Q2 2024 was $17.8 million, compared to a net loss of $6.7 million in Q2 2023 [27] - Funded backlog at the end of Q2 2024 stood at $487 million, providing strong visibility for future quarters [6][29] - Adjusted gross margins improved to 43% in Q2 2024, up from 27% in Q2 2023 [24] Business Segment Performance Unmanned Systems (UMS) - UMS revenue more than doubled YoY to $132.8 million, driven by strong international demand for Puma systems and initial shipments of JUMP 20 to Ukraine [11][21] - The segment benefited from the integration of Tomahawk Robotics, which is now part of UMS [9][21] Loitering Munitions Systems (LMS) - LMS revenue was $30.2 million, a 3% decrease YoY, primarily driven by Switchblade 600 sales [21] - The company is negotiating a large multi-year IDIQ contract with the U.S. DoD for LMS products, with significant demand from both U.S. and international allies [14][45] MacCready Works - Revenue for MacCready Works was $17.8 million, a 6% decrease YoY, due to lower SoftBank-funded HAPS revenue [22] - The segment is focused on developing next-generation technologies, including the Sunglider and SOAR programs [17][18] Market and Geographic Performance - The company has nine unmanned platforms deployed in Ukraine, receiving high praise for their effectiveness [8] - Strong demand for Puma and JUMP 20 systems in international markets, particularly in Ukraine, contributed to record deliveries [11][12] - The company is engaged with over 20 countries for Switchblade sales, with about a third in the U.S. DoD export approval process [15][44] Strategic Direction and Industry Competition - The company is leveraging its acquisition of Tomahawk Robotics to enhance interconnectivity and interoperability across its portfolio, offering a common operating picture for customers [9][10] - AeroVironment is positioned as a leader in contested environment operations, autonomous missions, and loitering munitions capabilities [32] - The company is investing in R&D to develop next-generation solutions, including autonomous systems and advanced munitions, to meet evolving customer needs [26][76] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about future growth, driven by strong demand for unmanned systems and loitering munitions, particularly in international markets [7][33] - The company expects uneven revenue distribution in the second half of FY 2024, with LMS becoming a stronger contributor to revenue growth [30][51] - Gross margins are expected to decline in the second half due to a shift in product mix towards lower-margin LMS products [23][46] Other Important Information - The company has revised its FY 2024 revenue guidance to $685 million - $705 million, reflecting strong performance and the impact of the Tomahawk acquisition [30] - AeroVironment has appointed retired General Joseph Votel to its Board of Directors, bringing extensive military expertise to guide the company's strategic direction [34] Q&A Session Summary Question: Contribution from Tomahawk Robotics and revised guidance - The increase in revenue guidance is attributed to both organic growth and the acquisition of Tomahawk Robotics, with both factors equally represented in the demand for the second half of the year [36] Question: Integration roadmap for Tomahawk Robotics - Integration is on track, with Tomahawk already part of the UMS segment. The company is working on integrating Tomahawk's common controller with its existing products, with significant synergies expected in the future [38][39] Question: Status of Switchblade 600 production - The company has significant production capacity for Switchblade 600, with deliveries expected to increase in the second half of FY 2024. Over 20 countries are interested in acquiring Switchblade, with about a third in the export approval process [43][44] Question: Gross margin outlook for the second half of FY 2024 - Gross margins are expected to decline in the second half due to a shift towards lower-margin LMS products, with adjusted gross margins anticipated to be in the high-30s to low-40s [46][47] Question: Growth outlook for LMS in the second half of FY 2024 - LMS is expected to be the strongest driver of growth in FY 2024, with robust demand for Switchblade 300 and 600 products. The pipeline for LMS is strong, with significant opportunities not yet reflected in the backlog [50][51] Question: Path to improving LMS gross margins - LMS gross margins are improving, with strategies focused on increasing production volume, reducing costs, and enhancing manufacturing efficiency. Switchblade Block 20 products are easier to manufacture, contributing to margin improvements [57][58] Question: LASSO contract and Switchblade IDIQ - The LASSO contract is part of the U.S. Army's program of record, while the IDIQ contract is a larger multi-year agreement that will streamline procurement for Switchblade products. Both contracts are expected to drive significant revenue growth [60][61] Question: SoftBank's funding for HAPS - SoftBank remains committed to funding the HAPS program, although funding has slowed due to macroeconomic conditions. AeroVironment is also investing in HAPS to protect its IP and expects additional funding from the U.S. DoD in FY 2024 [68][69] Question: EPS guidance for the second half of FY 2024 - The decline in EPS guidance for the second half is primarily due to a shift in product mix and increased R&D spending, as the company invests in next-generation technologies [73][75]

Second Quarter Fiscal Year 2024 Earnings Presentation December 5, 2023 026250 Slide 1 | © 2022 AeroVironment, Inc. Safe Harbor Statement Certain statements in this presentation may constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “believe,” “anticip ...

Revenue and Income - Revenue for the three months ended October 28, 2023, was $180.8 million, a 62% increase from $111.6 million for the same period in 2022[181]. - Revenue for the six months ended October 28, 2023 was $333.2 million, an increase of $113.1 million or 51% compared to $220.1 million for the same period in 2022[196]. - Net income for the three months ended October 28, 2023, was $17.8 million, compared to a net loss of $6.6 million for the same period in 2022[181]. - Net income for the six months ended October 28, 2023 was $39.7 million, compared to a net loss of $15.0 million for the same period in 2022[194]. - Adjusted income from operations for the three months ended October 28, 2023 was $30.7 million, compared to a loss of $5.9 million for the same period in 2022[184]. Gross Margin and Expenses - Gross margin for the three months ended October 28, 2023, was $75.4 million, compared to $25.9 million for the same period in 2022, reflecting a significant improvement[181]. - Gross margin for the six months ended October 28, 2023 was $141.0 million, an increase of $81.4 million or 137% compared to $59.6 million for the same period in 2022[200]. - Research and development expenses for the three months ended October 28, 2023, were $22.0 million, up from $16.6 million in the same period in 2022[181]. - Selling, general, and administrative expenses for the three months ended October 28, 2023, were $28.1 million, compared to $23.6 million for the same period in 2022[181]. - SG&A expense for the six months ended October 28, 2023 was $52.0 million, or 16% of revenue, down from $45.6 million or 21% of revenue in the prior year[201]. - R&D expense for the six months ended October 28, 2023 was $37.5 million, or 11% of revenue, compared to $31.6 million or 14% of revenue for the same period in 2022[201]. Cash Flow and Backlog - Net cash used in operating activities for the six months ended October 28, 2023 was $(25.6) million, a decrease from net cash provided of $31.9 million in the prior year[218]. - Funded backlog as of October 28, 2023 was approximately $487.0 million, up from $424.1 million as of April 30, 2023[206]. - Unfunded backlog as of October 28, 2023 was $173.2 million, which does not guarantee future orders[207]. Adjustments and Impairments - Favorable cumulative catch-up adjustments for the three months ended October 28, 2023, amounted to $4.1 million, primarily due to final cost adjustments on seven contracts[165]. - Unfavorable cumulative catch-up adjustments for the same period were $1.3 million, related to higher than expected costs on seven contracts[165]. - For the six months ended October 28, 2023, favorable cumulative catch-up adjustments totaled $5.6 million, while unfavorable adjustments were $2.0 million[170]. - The company recognized a goodwill impairment charge of $156.0 million in the MUAS reporting unit during the fiscal year ended April 30, 2023, due to decreased projected future cash flows[176]. - The company has not identified any events that could trigger an impairment review prior to the annual goodwill impairment test as of October 28, 2023[177]. Financing and Investments - The company sold 807,370 shares for total gross proceeds of $91.3 million during the three and six months ended October 28, 2023[209]. - The total purchase price for the Tomahawk acquisition was $134.5 million, consisting of $109.8 million in stock and $24.2 million in cash[216]. - Net cash used in investing activities increased by $41.1 million to $37.6 million for the six months ended October 28, 2023, compared to net cash provided of $3.4 million for the same period in 2022[221]. - Net cash provided by financing activities increased by $42.5 million to $31.5 million for the six months ended October 28, 2023, compared to net cash used of $10.9 million for the same period in 2022[222]. Market Risks and Accounting - The current outstanding balance of the Credit Facilities is $80.0 million, bearing a variable interest rate, which may increase if market interest rates continue to rise[225]. - The company is exposed to various market risk factors, including fluctuations in interest rates and foreign currency exchange rates[224]. - The company has not experienced significant foreign exchange gains or losses, as a significant part of sales and expenses are denominated in U.S. dollars[226]. - The company engages in forward contracts in foreign currencies to limit exposure on non-U.S. dollar transactions[226]. - The company did not adopt any new accounting standards during the six months ended October 28, 2023[223].

AeroVironment, Inc. (NASDAQ:AVAV) Q1 2024 Earnings Call September 5, 2023 4:30 PM ET Company Participants Jonah Teeter-Balin - Senior Director of Corporate Development and Investor Relations Wahid Nawabi - Chairman, President and Chief Executive Officer Kevin McDonnell - Senior Vice President and Chief Financial Officer Conference Call Participants Greg Konrad - Jefferies Peter Arment - Baird Ken Herbert - RBC Bryce Sandberg - William Blair Pete Skibitski - Alembic Global Operator Good day, and thank you fo ...

First Quarter Fiscal Year 2024 Earnings Presentation September 5, 2023 026250 Slide 1 © 2023 AeroVironment, Inc. Safe Harbor Statement Certain statements in this presentation may constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “believe,” “anticipat ...