AeroVironment Surpasses Expectations with Record Revenue and Soaring Backlog
AeroVironment, a U.S. drone manufacturer, reported strong first-quarter fiscal year 2027 financial results, exceeding analyst expectations and boosting its stock in after-hours trading. The company posted revenues of $480.5 million, a 6% increase year-over-year and slightly above the consensus estimate of $460 million. Earnings per share were $0.59, nearly double the projected $0.30.
Product sales accounted for $329.1 million, while contract services contributed $151.4 million. The company's funded backlog, representing orders with secured budgets, surged by 37% to $1.5 billion. New orders in the quarter reached $0.7 billion, resulting in an orders-to-revenue ratio of 1.4, indicating significant future work.
The autonomous systems division, which includes the Switchblade loitering munition and small reconnaissance drones, generated $346 million. The space, cyber, and directed energy division added $134.5 million. Gross profit rose 31% to $124.6 million, representing 26% of revenue. The company reduced its operating loss to $10.9 million from $69.3 million in the prior year, and its net loss narrowed to $5.1 million, or $0.10 per share.
A significant contributor to the backlog increase is a recent $464.8 million contract with the U.S. Army for the Luke 30-kilowatt laser system, designed to counter small and medium-sized drones. This marks the first serial procurement of directed energy systems by the U.S. military, with deliveries expected over several years. Additionally, NASA has ordered three autonomous helicopters for its Mars Skyfall mission, slated for late 2028.
AeroVironment maintained its full-year fiscal 2027 forecast, projecting revenues between $2.125 billion and $2.225 billion, and adjusted EBITDA between $305 million and $325 million. The company's stock is trading at a valuation that suggests expectations for continued rapid growth. In contrast, some Israeli defense stocks, like Elbit Systems, have seen their stock prices rise despite reporting record backlogs, while others like Aeronautics have experienced significant declines.
