AeroVironment Inc (AVAV) FY2026 10-K Annual Report
AeroVironment Inc (AVAV) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jun 29, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
AeroVironment Inc FY2026 10-K Analysis
Business Overview
- • Core business model: Defense tech provider delivering autonomous, precision strike, counter-UAS, space, directed energy, and cyber systems globally
- • New segments post-May 1, 2025: Two reportable segments formed—Autonomous Systems and Space, Cyber, and Directed Energy after BlueHalo acquisition
- • Strategic shift: Enhanced capabilities from BlueHalo acquisition including RF systems, digital phased array antennas, directed energy weapons, and cyber mission solutions
- • Quantitative highlight: Funded backlog rose to $1,183M from $727M YoY; 3,991 full-time employees with 2,366 in R&D and engineering
- • Noteworthy fact: Launch of new product Mayhem 10 supporting multi-role ISR, EW, decoy, comms relay, and precision strike across air, ground, maritime platforms
Management Discussion & Analysis
- • Revenue $1.98B, up 141% YoY from $821M; product revenue up $723M including $526M from BlueHalo & ESAero acquisitions, service revenue up $434M
- • Gross margin down to 25% from 39% due to increased amortization and higher service revenue proportion; operating loss $(311)M vs income $41M
- • Best segment AxS: revenue $1.36B (+65%), adjusted EBITDA $289M (+97%); worst SCDE segment loss with adjusted EBITDA $(2.6)M on $619M revenue (new from BlueHalo acquisition)
- • Cash flow: Operating cash used $(78.4)M vs $(1.3)M YoY; Investing cash used $1.23B due to acquisitions; Financing cash provided $1.65B from equity and notes to repay debt
- • Forward outlook: $16.3M purchase option on Huntsville building executed; expect stable funding from operations and credit facilities; risks from goodwill impairment in Space segment ($241M charge)
Risk Factors
- • U.S. govt. budget & spending risk: 85% revenue from U.S. govt., with 63% from DoD; DOGE spending review creates funding uncertainty as of FY2026
- • Geopolitical supply risk: rare earth metals mostly sourced from China; Jan 2024 China sanctions and Mar 2025 export controls on AeroVironment may limit component availability
- • Operational supply chain risk: $127.7M R&D spend (6% of revenue FY2026); reliance on sole-source specialized suppliers without long-term contracts increases component scarcity risk
- • Competitive disruption: intense competition in UAS market from Lockheed Martin, Boeing, Anduril, Textron, and others; rapid tech change and AI integration essential to maintain advantage
- • Financial leverage risk: $747.5M convertible notes outstanding (0% interest, maturity 2030); previous $700M term loan repaid in 2025 but revolving credit remains; debt covenants may restrict flexibility
AeroVironment Inc FY2026 Key Financial MetricsXBRL
Revenue
$2.0B
▲ +140.9% YoY
Net Income
-$265M
▼ -707.8% YoY
Gross Margin
25.3%
▼ -1350bp YoY
Operating Margin
-15.7%
▼ -2070bp YoY
Net Margin
-13.4%
▼ -1873bp YoY
ROE
-6.0%
▼ -1095bp YoY
Total Assets
$5.7B
▲ +410.2% YoY
EPS (Diluted)
$-5.40
▼ -448.4% YoY
Operating Cash Flow
-$78M
▼ -5848.7% YoY
Source: XBRL data from AeroVironment Inc FY2026 10-K filing on SEC EDGAR. All figures in USD.
Other AeroVironment Inc Annual Reports
Get deeper insights on AeroVironment Inc
Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.