AeroVironment Earnings Rise on Record Backlog
AeroVironment earnings showed record Q1 revenue and a $1.5 billion funded backlog and reaffirmed fiscal 2027 guidance, prompting trader positioning.
KEY TAKEAWAYS
- Record funded backlog hit $1.5 billion and bookings were about $683-700 million.
- Management reaffirmed fiscal 2027 revenue guidance of $2.1 billion to $2.2 billion, citing the backlog.
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AeroVironment, Inc. (NASDAQ: AVAV) reported record fiscal first-quarter 2027 revenue, bookings, and funded backlog for the quarter ended Aug. 1, 2026, and reaffirmed full-year fiscal 2027 guidance after the market close on Sept. 9.
Record Revenue, Bookings, and Backlog
AeroVironment posted fiscal Q1 2027 revenue of $480.5 million, up about 6% from the prior year, driven mainly by higher product sales and service revenue. Bookings for the quarter ranged from $683 million to $700 million, producing a book-to-bill ratio of 1.4.
The company’s funded backlog reached a record $1.5 billion, up 37% year over year and about 23% sequentially from $1.2 billion in the prior quarter. Including unfunded orders of roughly $1.4 billion, total backlog stood near $2.8 billion.
Autonomous Systems revenue accounted for about $346 million, or 72% of total sales, rising 21% year over year. Revenue from Space, Cyber and Directed Energy fell about 21% to $134 million, consistent with company expectations.
Profitability, Cash Flow, and Guidance
GAAP net loss narrowed to $5.1 million, or $0.10 per diluted share, from a loss of $67.4 million a year earlier. Non-GAAP diluted earnings per share rose to $0.59. Adjusted EBITDA was approximately $53.4 million, implying an 11% margin.
Gross profit increased 31% to $124.6 million, lifting the gross margin rate to about 26% from 21% a year earlier. This margin was reduced by roughly $18.5 million in intangible amortization and related non-cash purchase-accounting charges, down from $37.4 million in the prior year. Operating loss narrowed to $10.9 million from $69.3 million.
Operating cash flow turned positive at about $13 million to $13.5 million, compared with negative $123.7 million a year earlier. Free cash flow was negative $36 million, reflecting higher capital spending on facility expansions and inventory buildup to support production and long-lead components. Cash and investments totaled about $607 million, down roughly $38 million sequentially. Debt included approximately $747.5 million in zero-coupon convertible notes, implying net leverage near 1.6 times adjusted EBITDA.
AeroVironment reaffirmed fiscal 2027 guidance, projecting revenue between $2.125 billion and $2.225 billion and adjusted EBITDA of $305 million to $325 million. Management cited the record backlog as providing strong revenue visibility and supporting expanded production capacity for uncrewed systems, loitering munitions, and counter-drone programs. Key contract awards include a near $465 million LOCUST E-HEL contract and a roughly $500 million Titan indefinite-delivery/indefinite-quantity (IDIQ) contract.
