AeroVironment gains after revenue, $468M Army award

AeroVironment reported first-quarter fiscal 2027 revenue of $480.5 million, a 6% increase from a year earlier, and backlog of $1.5 billion. Shares rose more than 3% after the company disclosed a $468 million award for the Army Enduring-High Energy Laser program.

The revenue gain reflected higher product sales and services, including an increase of $15.5 million in product sales and $10.3 million in services. The Autonomous Systems segment generated more than $346 million in sales, while the Space, Cyber and Directed Energy segment produced about $134.5 million.

Gross margin widened to 31%, supported by the larger share of product revenue. Loss from operations narrowed to $10.9 million, compared with a $69.3 million loss in the same quarter a year earlier.

Backlog rose from $1.2 billion in the prior quarter to $1.5 billion. In addition to the $468 million E-HEL award, the company reported contract wins including $500 million for precision strike and defensive systems, $464 million for space and directed energy work, and $117 million tied to uncrewed aircraft systems.

Management updated full-year guidance to revenue of $2.12 billion to $2.22 billion and adjusted EBITDA of $305 million to $325 million.

Shares have fallen from roughly $417 in October to about $140.80 in recent months; the stock rose after the earnings report. Recent trading showed a triple-bottom pattern with a neckline around $207 and support near $134, where activity concentrated during the company’s announcements.

CEO Wahid Nawabi noted, “Our customers are continuing to field autonomous capabilities at increasing scale, and our priority is expanding manufacturing capacity across our sites and strengthening our supply chain.”

Management plans to scale production and address supply-chain constraints as it executes the contracts and fiscal-year targets.