Revenue rose to $188 million, representing a new second-quarter record for the company. LMS was the strongest revenue growth driver with nearly $78 million in Q2 revenue; a 61% year-over-year increase.
— Wahid Nawabi
03Detailed Report
AVAV
Company AVAV
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 13, 2026
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Executive Summary
AeroVironment reported a robust second quarter of fiscal 2025 (QQ2 2025) with revenue of $188.46 million, a new quarterly record and up 4.2% year over year. The strength was driven primarily by the Loitering Munition Systems (LMS) segment, which posted $77.7 million in revenue, a 157% YoY increase, underscoring the strong demand for Switchblade variants and the stabilization of the UCAS awards. The Uncrewed Systems (UxS) segment delivered approximately $85.4 million in revenue, but was down 36% YoY largely due to a sharp drop in Ukraine-related sales, highlighting AVAV’s ongoing strategic pivot to diversify revenue sources away from Ukraine exposure. MacCready Works contributed $25.3 million, with HAPS-related activity fueling top-line growth in that segment.
Key Performance Indicators
Revenue
Increasing
188.46M
QoQ: -0.54% | YoY: 4.23%
Gross Profit
Decreasing
73.64M
39.07% margin
QoQ: -7.68% | YoY: -2.27%
Operating Income
Decreasing
7.01M
QoQ: -69.62% | YoY: -72.17%
Net Income
Decreasing
7.54M
QoQ: -64.36% | YoY: -57.72%
EPS
Decreasing
0.27
QoQ: -64.47% | YoY: -59.09%
Revenue Trend
Margin Analysis
Financial Highlights
Key quarterly metrics and trends (Q2 FY2025 vs Q2 FY2024 where available):
- Revenue: $188.46M, up 4.23% YoY; QoQ: -0.54% (per earnings data).
- Gross margin: GAAP 39.0%; adjusted gross margin 41.0% (lower vs. prior-year due to mix shift toward LMS).
- Operating income: GAAP 7.01M; adjusted EBITDA: $25.90M (down vs. $39.5M prior-year, reflecting higher SG&A/R&D in the period).
- Net income: $7.54M; GAAP EPS: $0.27; Adjusted/diluted non-GAAP EPS: $0.47.
- Backlog: funded backlog $467.1M (up 25% QoQ); unfunded backlog approximately $1.8B; 95% visibility to the midpoint of revenue guidance.
- Segments mix (Q2): UxS $85.4M (down 36% YoY, Ukraine exposure declined); LMS $77.7M (up 157% YoY); MacCready Works $25.3M.
- Cash and liquidity: cash and cash equivalents end of period $68.96M; total cash/investments $91.2M; total debt $35.28M; net debt to cash flow position: net cash approx. -$33.68M.
- Guidance: reaffirmed FY2025 revenue, adjusted EBITDA, and non-GAAP EPS; Q3 projected to be ~40% of H2 revenue; BlueHalo transaction pending close in H1 2025 (pro forma guidance to reflect post-close).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
188.46M
4.23%
-0.54%
Gross Profit
73.64M
-2.27%
-7.68%
Operating Income
7.01M
-72.17%
-69.62%
Net Income
7.54M
-57.72%
-64.36%
EPS
0.27
-59.09%
-64.47%
Key Financial Ratios
Gross Profit Margin
Fair
39.10%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
3.72%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
4.00%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.74%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.88%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
4.61
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.04
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
205.07x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
7.21x
Very high premium suggests asset-light business model or lofty expectations
Management Insights Available for Members
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