AeroVironment, Inc. (NASDAQ:AVAV) Q3 2025 Earnings Conference Call March 4, 2025 4:30 PM ET Company Participants Jonah Teeter-Balin - Vice President, 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 Gregory Konrad - Jefferies Peter Arment - Baird Louie DiPalma - William Blair Andre Madrid - BTIG Operator Thank you for standing by. Welcome to the AeroViro ...

AeroVironment (AVAV) came out with quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -48.28%. A quarter ago, it was expected that this maker of unmanned aircrafts would post earnings of $0.66 per share when it actually produced earnings of $0.47, delivering a surprise of -28.79%.Over the last four qu ...

THIRD QUARTER Fiscal Year 2025 March 4, 2025 Slide 1 © 2025 AeroVironment, Inc. 093024 THIRD QUARTER FISCAL YEAR 2025 Safe Harbor Statement Certain words in this presentation may contain "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," "anticipate," ...

Exhibit 99.1 AeroVironment Announces Fiscal 2025 Third Quarter Results ARLINGTON, VA, March 4, 2025 — AeroVironment, Inc. ("AeroVironment" or the "Company") reported today financial results for the fiscal third quarter ended January 25, 2025. Third Quarter Highlights: "We faced a number of short-term challenges in the third quarter, including the unprecedented high winds and fires in Southern California, which impacted our ability to meet our goals," said Wahid Nawabi, AeroVironment chairman, president and ...

Core Viewpoint - AeroVironment, Inc. (AVAV) is expected to report its third-quarter fiscal 2025 results on March 4, 2025, after market close, with a projected revenue growth despite higher expenses impacting earnings [1][6]. Revenue Segments - The Loitering Munitions Systems (LMS) segment is anticipated to show strong sales, with quarterly revenues estimated at $92.3 million, reflecting a 60% increase year-over-year [3]. - The MacCready Works (MW) segment is also expected to perform well, with revenues projected at $21.1 million, indicating a 35% growth compared to the same quarter last year [4]. - Conversely, the Uncrewed Systems (UxS) unit is likely to report disappointing figures due to declining product shipments and lower international sales, particularly to Ukraine [5]. Overall Financial Expectations - The overall revenue for AeroVironment in the fiscal third quarter is estimated at $189.3 million, suggesting a 1.4% increase from the previous year [6]. - Despite solid revenue projections, increased sales and marketing expenses, along with higher employee-related costs, may negatively impact operating margins and overall earnings [7]. - The earnings consensus estimate is set at 58 cents per share, indicating a decline of 7.9% from the prior year's figure [8]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for AeroVironment, as the Earnings ESP stands at 0.00% [9]. - AeroVironment holds a Zacks Rank 1 (Strong Buy), indicating a favorable outlook despite the earnings prediction challenges [10].

Core Insights - AeroVironment (AVAV) is expected to report quarterly earnings of $0.58 per share, reflecting a decline of 7.9% year-over-year, while revenues are forecasted to be $189.25 million, indicating a 1.4% increase compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analysts' projections [1] Revenue Estimates - The consensus estimate for 'Revenue- Contract Services' is $35.79 million, representing a year-over-year increase of 16.7% [4] - 'Revenue- Product Sales' is expected to reach $160.30 million, indicating a year-over-year change of 2.8% [4] Gross Margin Estimates - Analysts project 'Gross margin- Contract services' to be approximately $8.96 million, down from $10.85 million reported in the same quarter last year [4] - The estimated 'Gross margin- Product sales' is $64.91 million, an increase from $56.44 million reported in the same quarter of the previous year [5] Stock Performance - AeroVironment shares have decreased by 10.3% over the past month, contrasting with the Zacks S&P 500 composite's decline of 2.2% [6] - The company holds a Zacks Rank 1 (Strong Buy), indicating expectations of outperforming the overall market in the near term [6]

Company Performance - AeroVironment (AVAV) closed at $158.13, reflecting a -0.45% change from the previous day, underperforming the S&P 500's loss of 0.43% [1] - Over the past month, AeroVironment's shares have decreased by 10.7%, significantly trailing the Aerospace sector's loss of 1.55% and the S&P 500's gain of 2.6% [1] Upcoming Earnings - The upcoming earnings report for AeroVironment is scheduled for March 4, 2025, with an expected EPS of $0.58, indicating a 7.94% decline year-over-year [2] - Revenue is projected to be $189.25 million, representing a 1.43% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are estimated at $3.38 per share and revenue at $811.51 million, reflecting increases of +13.04% and +13.23% respectively from the prior year [3] Analyst Estimates - Recent changes in analyst estimates for AeroVironment are crucial as they indicate shifts in near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks AeroVironment as 1 (Strong Buy) [6] Valuation Metrics - AeroVironment has a Forward P/E ratio of 46.95, which is a premium compared to the industry average Forward P/E of 30.64 [7] - The Aerospace - Defense Equipment industry, part of the Aerospace sector, holds a Zacks Industry Rank of 129, placing it in the bottom 49% of over 250 industries [7]

Group 1: Stock Performance - AeroVironment's stock closed at $179.35, reflecting a -1.54% change from the previous day, underperforming the S&P 500's gain of 0.03% [1] - The stock has increased by 12.36% over the past month, outperforming the Aerospace sector's gain of 4.66% and the S&P 500's gain of 4.19% [1] Group 2: Upcoming Financial Results - AeroVironment is expected to report earnings of $0.58 per share, indicating a year-over-year decline of 7.94% [2] - The projected revenue for the upcoming release is $189.25 million, which represents a 1.43% increase from the previous year [2] Group 3: Annual Forecasts - For the entire year, earnings are forecasted at $3.38 per share and revenue at $811.51 million, reflecting increases of +13.04% and +13.23% respectively compared to the previous year [3] - Recent analyst estimate revisions suggest a positive outlook for the company's business [3] Group 4: Valuation Metrics - AeroVironment has a Forward P/E ratio of 53.84, which is a premium compared to the industry's average Forward P/E of 30.79 [6] - The Aerospace - Defense Equipment industry ranks in the bottom 44% of all industries, with a current Zacks Industry Rank of 141 [6] Group 5: Zacks Rank System - AeroVironment currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining steady over the past month [5] - The Zacks Rank system has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988 [5]

Company Performance - AeroVironment (AVAV) closed at $185.96, reflecting a slight decrease of -0.09% from the previous day, underperforming compared to the S&P 500's gain of 0.39% [1] - Over the last month, AeroVironment's shares increased by 14.16%, significantly outperforming the Aerospace sector's gain of 2.81% and the S&P 500's gain of 1.7% [1] Upcoming Earnings - The upcoming earnings per share (EPS) for AeroVironment is projected at $0.58, indicating a 7.94% decline compared to the same quarter last year [2] - Revenue is anticipated to be $189.25 million, reflecting a 1.43% increase from the same quarter last year [2] Full Year Estimates - For the full year, Zacks Consensus Estimates project earnings of $3.38 per share and revenue of $811.51 million, showing increases of +13.04% and +13.23% respectively from the previous year [3] - Recent changes to analyst estimates for AeroVironment may indicate a shifting business landscape, with positive revisions suggesting optimism about the company's outlook [3] Valuation Metrics - AeroVironment's current Forward P/E ratio is 55.01, which is a premium compared to the industry average Forward P/E of 29.93 [6] - The Aerospace - Defense Equipment industry, to which AeroVironment belongs, has a Zacks Industry Rank of 136, placing it in the bottom 46% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates AeroVironment at 3 (Hold) [5] - The Zacks Rank has a historical track record of outperforming expectations, with 1 rated stocks delivering an average annual return of +25% since 1988 [5]

Core Insights - Kuehn Law, PLLC is investigating potential claims related to several proposed mergers, focusing on whether the boards acted to maximize shareholder value, failed to disclose material information, and conducted a fair process [1][2][3]. Group 1: Proposed Mergers - Paragon 28, Inc. has entered into a definitive agreement with Zimmer Biomet Holdings Inc. for $13.00 per share, with the deal expected to close in the first half of 2025, pending shareholder approval and regulatory clearances [1]. - Triumph Group, Inc. has agreed to be acquired by affiliates of Warburg Pincus and Berkshire Partners for $26.00 per share in cash, with the transaction set to close in the second half of 2025 [2]. - AeroVironment, Inc. has entered into a definitive agreement with BlueHalo LLC, where AeroVironment shareholders will own 60.5% and BlueHalo equity holders will hold 39.5% after closing adjustments [2]. - Inari Medical, Inc. has agreed to be acquired by Stryker for $80.00 per share in cash, with the transaction expected to close in Q1 2025 [3]. Group 2: Shareholder Involvement - Kuehn Law emphasizes the importance of shareholder participation in ensuring the integrity and fairness of financial markets, encouraging concerned shareholders to get involved [4]. - The firm covers all case costs and does not charge its investor clients, advising shareholders to act promptly due to the time-sensitive nature of legal rights [4].