AeroVironment (NASDAQ: AVAV) is a defense technology company that develops and manufactures autonomous systems, precision strike munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. Revenue comes primarily from U.S. government contracts and foreign military sales, with program-based transactional delivery of hardware, software, and associated services. The company operates two reportable segments effective May 1, 2025: Autonomous Systems, and Space, Cyber and Directed Energy. Total revenue reached $820.6 million in fiscal year ended April 30, 2025, up from $716.7 million in FY2024 and $540.5 million in FY2023. Gross margin was 39% in FY2025. International sales, including U.S. government foreign military sales to allied nations, accounted for approximately 52% of FY2025 revenue, down from 62% in FY2024. The company carries R&D spending of $100.7 million in FY2025, equal to 12% of revenue. AeroVironment is headquartered in the United States and maintains a national manufacturing footprint.

Revenue model

Transactional contract revenue from U.S. government procurement, foreign military sales funded through U.S. government channels, and direct sales to allied nations. Revenue is recognized on government contracts for hardware systems, support services, and related capabilities across both reportable segments.

Products and services

Autonomous Systems segment includes Group 1-3 uncrewed aircraft systems (UAS), loitering munitions solutions (LMS) for precision strike, and counter-UAS (C-UAS) products including the Titan family (Titan C-UAS, Titan SV, Titan IV) and the Freedom Eagle (FE-1) kinetic interceptor. Space, Cyber and Directed Energy segment includes space-qualified electronics, laser communication technologies, software-defined radios, electronic warfare systems, directed energy weapons, full-spectrum cyber operations, tactical mission networks, and multi-intelligence data analytics. The BlueHalo acquisition added capabilities in RF system design, phased array antennas, and GEOINT/SIGINT/MASINT/OSINT analytics.

Customers and end markets

Primary customers are the U.S. government (Department of Defense and related agencies) and foreign governments purchasing through U.S. foreign military sales programs or direct allied-nation sales. End markets are military and defense, with demand driven by warfighter situational awareness, precision strike, drone defense, space operations, and electronic warfare requirements.

Value-chain role

Vertically integrated defense contractor and systems developer. Performs internal R&D, manufactures finished autonomous and electronic warfare systems, and delivers integrated capabilities directly to government customers. Also integrates acquired technologies, including BlueHalo's RF, directed energy, and cyber capabilities, into its own platform offerings.

Geographic exposure

United States is the primary base of operations and manufacturing. International revenue, including foreign military sales, was approximately 52% of total revenue in FY2025 (ended April 30, 2025), down from 62% in FY2024. International operations include Telerob Gesellschaft für Fernhantierungstechnik mbH. The company expects the international revenue proportion to decline further in FY2026 due to BlueHalo's lower international sales mix.

Source: SEC 10-K, filed 2025-06-25

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