Q1 FY2026 revenue reached a record $454.7M, up 140% YoY as reported and 18% on a pro forma basis (prepared).
Autonomous Systems (AXS) segment revenue: $285M (22% increase over FY25 pro forma); Space, Cyber, and Directed Energy (SCDE) segment revenue: $169M (12% increase over FY25 pro forma) (CFO).
Q1 bookings were nearly $400M; funded backlog grew to $1.1B; unfunded backlog at $3.1B (CEO, CFO).
Q1 adjusted EBITDA: $56.6M (12.4% of revenue); adjusted gross margin: 29% (CFO). GAAP net loss: $57.4M due to acquisition-related amortization and costs (CFO).
Cash and investments at quarter-end: $722M; completed $1.7B financing in Q1; used ~$950M to pay down Blue Halo acquisition debt (CFO).
Announced $240M award for long-haul space laser communications terminals (delivery over 3.5 years); $95M contract for FE1 long-range kinetic interceptor (CEO).
Delivered two LOCUST laser weapon systems under US Army AMP HEL program; two more expected next month (CEO).
Pursuing >20 programs of record with >$20B potential value over next five years (CEO).
Official FY2026 guidance: Revenue $1.9B to $2.0B; adjusted EBITDA $304M to $320M; non-GAAP adjusted EPS $3.60 to $3.70 (CFO). Visibility to revenue midpoint at 82% (CFO).
Prepared Metrics
Metric
Value
Speaker/Context
Q1 Revenue
$454.7M
CFO, record Q1
AXS Segment Revenue
$285M
CFO, Q1 result
SCDE Segment Revenue
$169M
CFO, Q1 result
Q1 Adjusted EBITDA
$56.6M (12.4% of rev)
CFO
Q1 Adjusted Gross Margin
29%
CFO, expects improvement to mid-30s by Q4
Funded Backlog
$1.1B
CFO
Unfunded Backlog
$3.1B
CFO
Q1 Bookings
~$400M
CEO
Cash & Investments
$722M
CFO, end of Q1
FY2026 Revenue Guidance
$1.9B – $2.0B
CFO
FY2026 Adjusted EBITDA Guidance
$304M – $320M
CFO
FY2026 Non-GAAP Adj. EPS Guidance
$3.60 – $3.70
CFO
Mgmt Quotes
“We achieved another record first quarter with revenue of nearly $455 million.” (CEO)
“Our long-haul space laser communications terminals award… is a strategic and critical milestone… and we’re now excited to move it from development into full-rate production.” (CEO)
“AeroVironment is uniquely positioned as a leading defense tech prime with our innovative product offerings, along with the experience and capacity necessary to scale manufacturing on an expedited timeline.” (CEO)
“We are very pleased with the results of the new AeroVironment on all metrics, delivering solid top-line and EBITDA growth.” (CFO)
“Our strong first-quarter results underscore the confidence we have in the future of AeroVironment, and our ability to reshape the future of defense.” (CEO)
Q1 results were strong, but only the first quarter; three quarters remain.
Full-year revenue outlook kept at $1.9 billion (implies near $2 billion); budgets not totally set and potential CR (continuing resolution) exists but not expected to affect the year.
Management sees record revenues ($2 billion) and record adjusted EBITDA ($300 million) on track.
Mgmt stance: Neutral – optimistic about record year but cautious due to budget uncertainty and DOD transformation; guided to maintain rather than raise.
Q2 — Anthony Valentini
Topic: Increased competition and pricing risk from "American drone dominance" push
Key points:
Competition is not new; company has faced drone industry hype cycles for over a decade.
Key differentiators: manufacturing scale, capacity for urgent short-cycle production, tens of thousands of systems deployed globally.
Pricing pressure likely more on low-end (Group 1) than in AeroVironment's categories (Group 2 and above); value proposition is cost-efficient vs. alternatives.
Mgmt stance: Bullish – confident in market leadership, track record, and ability to retain pricing at higher tiers.
Q3 — Louie DiPalma
Topic: AeroVironment Halo software platform openness to third parties
Key points:
AeroVironment Halo combines best of both AeroVironment and BlueHalo software into one ecosystem.
Platform strategy aims to simplify integration and interoperability across multiple systems.
No specific mention of third-party developer access or application marketplace (unlike Palantir Maven).
Mgmt stance: Neutral – describes platform as an integration umbrella, but no explicit commitment to open developer ecosystem.
Q4 — Louie DiPalma
Topic: Closing follow-up (no specific answer given)
Key points:
Analyst stated he will save remaining questions for Albuquerque open house.
No new information or management guidance provided.
Mgmt stance: Neutral – no substantive content.
Q5 — Jan Engelbrecht
Topic: Exportability of BlueHalo products (LOCUST, Titan, space); Red Dragon I US cleared list
Key points:
BlueHalo products: Space Force program ($1.5B+), Vulcan (directed energy CUAS on JLTV), Titan RF (international orders already), LOCUST laser CUAS – all multi-billion-dollar opportunities.
Red Dragon I placed on US cleared list in August – enables easier sales to US DoD, government agencies, and international customers.
Golden Dome opportunity: laser comms (LEO, MEO, GEO) and phased arrays – company has separate product (Panther) for LEO/MEO; RF is vulnerable to jamming.
Mgmt stance: Bullish – sees BlueHalo portfolio as highly complementary, with strong growth trajectory and leading position in laser communications for space.
Q&A Batch (6-10 of 13)
Q6 — Jonathan Siegman
Topic: Funded backlog clarification and near-term booking outlook
Key points:
Blue Halo/SCDE division had funded backlog of just over $300 million at period start, and increased it during the quarter.
Total funded backlog was roughly $1.1 billion; unfunded backlog is almost three times larger.
Management expects contract signings in Q2 could be well over $1 billion, approaching $2 billion (citing the laser contract as evidence).
Mgmt stance: Bullish – optimistic about Q2 and Q3 funded order momentum due to large unfunded obligations and pending congressional fund releases.
Q7 — Greg Conrad
Topic: 20-program pipeline ($20B over 5 years) – competitive vs. follow-on, and Golden Dome timing
Key points:
Majority of the 20+ programs are competitive; management claims a very high win rate and top-contender status on most.
Golden Dome is not included in the 20 programs; it is additive.
For Golden Dome, management believes a solution can be implemented at a site this calendar year with almost no R&D cost, using existing hardware and software.
Mgmt stance: Bullish – confident in win rate and scalability; emphasized off-the-shelf proven capabilities and partner Sierra Nevada Corporation.
Q8 — Andre Madrid
Topic: LRR program decision timing and P550 international opportunity
Key points:
LRR decision still within the 3–6 month window previously guided; management expects an announcement “quite soon.”
Army likely to down-select to two vendors; AeroVironment has ramped up manufacturing for P550.
P550 is expected to become a global franchise similar to Puma, Switchblade 300/600, and Raven; multiple international countries are engaged.
Mgmt stance: Bullish – believes P550 solution meets Army requirements better than any other; expects first order and international wins in the next quarter.
Q9 — Colin Canfield
Topic: Cash flow bridge and normalized working capital for FY2026
Key points:
Goal is to be cash flow positive and achieve cash conversion this year vs. last year.
Working capital improvement (especially in unbilled receivables) can offset any CapEx increases above guidance.
Management stated working capital for the year should not go much higher than current levels.
Mgmt stance: Neutral – balancing cash generation with growth-driven ramp-up needs; comfortable that working capital savings can offset CapEx.
Q10 — Trevor Walsh
Topic: $240M laser terminal award – revenue flow and upside opportunity
Key points:
Award covers development, first article, and transition to initial low-rate production; full-rate production expected well over a year later.
Laser communication market is “huge” due to satellite demand; AeroVironment claims best-in-class technology with no comparable competitor.
Expects this to be a significant growth driver beyond fiscal 2026 once full-rate production and space deployment begin.
Mgmt stance: Bullish – landmark event; bullish on long-term growth from laser communication as more satellites come online.
Q&A Batch (11-13 of 13)
Q11 — Austin Moeller
Topic: LaunchDefact budget allocation and LOCUST laser system energy requirements
Key points:
The $68 million in the budget for LaunchDefact is only for U.S. domestic consumption of different FX variants (small, medium, different sizes), not for FMS customers.
LOCUST laser system is roughly 15 to 20 kilowatts, with plans to go higher; it has been installed and delivered to the U.S. Army on a JLTV.
The system’s secret sauce is delivering photons accurately at the target, requiring less power than bulkier, more expensive systems.
Mgmt stance: Bullish — management highlights unique core competency in directed energy, with the U.S. Army pleased with performance, and sees this as a large part of counter-UAS and counter-hypersonic missile defense, including Golden Dome.
Q12 — Austin Moeller (continued)
Topic: Follow-up on LOCUST laser system energy requirements
Key points:
The system does not require a lot of power; it is roughly 15 to 20 kilowatts.
It has been installed on a JLTV and delivered to the U.S. Army, with more deliveries planned.
Management believes the market is just being scratched, with implications for counter-UAS, counter-hypersonic missile defense, and Golden Dome.
Mgmt stance: Bullish — management is encouraged and enthused by the system’s performance and market potential.
Q13 — Austin Bollig
Topic: Full-year guidance and OBD funding inclusion
Key points:
Some OBD funding is baked into current guidance, but not all, due to fluid timing and how long it takes for dollars to hit accounts and be contracted.
If budgets are not approved or a continuing resolution occurs, it adds risk for funding not to materialize this year, but it will happen in the following year.
Management expects a great year, finishing strong with a strong pipeline in bookings, setting up for success beyond fiscal 2026.
Mgmt stance: Bullish — management feels very strong about current guidance, with prospects for growth never better, driven by urgent requirements for drones, loitering munitions, counter-UAS RF, lasers, Golden Dome, software solutions (AeroVironment Halo, Titan jammers), space laser communication, and phased arrays.