AeroVironment delivered a record start to fiscal year 2025 with total quarterly revenue of $189.5 million, up 24% year over year, marking the first-quarter revenue record for the company. The strongest growth driver remained Loitering Munition Systems (LMS), which reported $52 million in revenue, a 68% YoY increase, underscoring elevated demand for Switchblade variants (600 and 300) amid expanding production capacity. Uncrewed Systems (UxS) followed as the second-largest contributor at $120 million, up 22% YoY, supported by Puma, JUMP 20, and new P550 opportunities; Puma deliveries to Ukraine are progressing, with the company noting its 475th delivery to Ukraine and active Ukraine-related opportunities under the recently announced aid package.
Management reaffirmed guidance for FY2025, highlighting a robust backlog and a pipeline that supports a higher activity level through the year. Notably, AeroVironment secured a significant 1B1 IDIQ (LUS/LASSO umbrella) with the U.S. Army, including a $128 million first task order booked in Q1 against a near $1B ceiling. The IDIQ structure provides for progress payments, improving cash flow and working capital, while enabling multi-year procurements for Switchblade variants, Ukraine aid, and potential international acquisitions under FMS programs.
The company signaled constructive margin and profitability dynamics: GAAP gross margins were 43% with adjusted gross margins at 45%; products margins were 48% (down slightly from 49% prior year) and services margins were 29% (up from 28%). Adjusted EBITDA was $37 million, flat versus the prior-year quarter as higher revenue and gross margin were offset by rising R&D and SG&A investments. Net income totaled $21.2 million with adjusted EPS of $0.89, while GAAP diluted EPS was $0.75. Management emphasized continued investment in R&D (about 13% of revenue) and 12â13% company-wide R&D for FY2025, aiming to sustain long-term growth in UxS capabilities, autonomous systems, and MacCready Works programs.