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AVAV Nasdaq Russell 1000 Earnings call

AeroVironment Inc (AVAV) · Q2 2026 results

Share price: $124.40 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q1 2027 · published 9 Sep 2026 and 29 Jun 2026

Net income turned to a loss from a profit last quarter. Management sounded upbeat, in its script and in answers to analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

Turned loss

Net income vs Q1 2026

Outlook given

Net income -5.1M vs 63.2M

Revenue −25.1%

2 · How management spoke

Upbeat

More upbeat than 65% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

AeroVironment Inc reported a record funded backlog of $1.5 billion, representing a 37% increase compared to the same period last year.

Valuation

Reverse DCF. Free cash flow from the last full fiscal year, grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

Valuation unavailable: free cash flow and profit were negative in the last full year and on average over the last three, so there is nothing to discount.

Current price

$124.40

close of 2026-11-11

Free cash flow 2024

−$0.0B

Free cash flow 2025

−$0.0B

Free cash flow 2026

−$0.1B

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    The goodwill impairment charge was a noncash transaction that did not impact revenue, current assets, current liabilities, cash used in operating activities, or adjusted EBITDA or EPS measures.

    Source quote
    “In addition, it does not relate to updated estimates of the long term cash flows used in the goodwill impairment... ...was a noncash charge and had no impact on previously reported current assets current liabilities, revenues, cash used in operating activities, or our non GAAP adjusted EBITDA or adjusted EPS measures. Full year results we are discussing today reflect the corrected impairment.”
  2. Key theme

    The company is winning landmark contracts in the laser weapon systems market as the adoption rate for directed energy technology is becoming steep.

    Source quote
    “The entire laser weapon systems, the directed energy laser weapon system market is essentially starting to begin to evolve now. Well, so Andre (sic) [ Ned ], we are winning, as you see, some landmark contracts. The adoption rate and the knee on this curve is very steep.”
  3. Guidance

    The company expects adjusted EBITDA to be roughly 1/3 in the first half and 2/3 in the second half of the year following the established revenue cadence.

    Source quote
    “Following this revenue cadence, we expect adjusted EBITDA to be roughly 1/3 in the first half and 2/3 in the second half of the year.”
  4. Guidance

    The LOCUST product line is expected to have a very strong margin based on current and future contract wins.

    Source quote
    “The LOCUST product line is going it is expected based on the contract wins that we have and the future ones that we expect to win, to have a very strong...”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Upbeat (was typical)
Answers to analysts Typical (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“With strong momentum across our portfolio and significant opportunities ahead, we believe the long-term potential for growth and value creation at AV has never been better and stronger.”
“The strong awards that we got on P550, the increase in the JUMP 20-X, a strong commercial sales that we're seeing both domestically and internationally all led to that sustained...”
“Our Titan series of RF Jammers continue to be a market-leading solution in the world and a strong growth driver for the company, and we anticipate the use cases for...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-08-01)

Metric Q2 2026period end 2026-08-01 Q1 2026period end 2026-04-30 Change Q2 2025 YoY
Revenue 480.5M 641.6M −25.1% 454.7M +5.7%
Gross profit 124.6M 202.6M −38.5% 95.1M +31.0%
Operating income -10.9M 56.9M Turned loss -69.3M Loss narrowed
Net income -5.1M 63.2M Turned loss -67.4M Loss narrowed
EPS -0.10 1.33 Turned loss -1.44 Loss narrowed
P/E 12-mo loss 12-mo loss — 12-mo loss —

Topics

Most discussed now

  • During the quarter, AeroVironment announced several key capacity expansion efforts directly tied to growth on key franchise programs....
  • At the same time, AeroVironment made significant progress on its capacity expansion initiatives that it expects will...
  • AeroVironment expects this to be the beginning of a lot more awards, Louie, number one; and number two, the market...
  • Weapon systems and missiles does not have an economically viable solution to attack, to address this problem.
  • Congress actually provided us with additional funding just to accelerate.

Faded since Q1 2026

  • Fading Cash flow rebounded in quarter 4 with $73 million of free cash flow driven by strong operating performance throughout the...
  • Dropped AeroVironment has designed this product to be essentially very compliant with a common launch tube that US Army refers to...
  • Dropped AeroVironment remains focused on execution, including advancing a more commercially oriented approach across the portfolio while…
  • Fading I will walk you through AeroVironment's fourth quarter and full year performance and fiscal 27 outlook.

Latest announcements

Official filings, newest first.

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