AeroVironment reported robust first-quarter 2027 financial performance at the Jefferies Global Industrials Conference on September 10, 2026, with revenue growth accelerating and operational integration of its BlueHalo acquisition advancing. Chairman and CEO Wahid Nawabi described the quarter as ‘not even a good quarter, but a fantastic quarter,’ emphasizing the company’s momentum in defense and unmanned systems, where it has secured multiple high-value contracts and expanded manufacturing capacity.
The company maintained full-year fiscal 2027 guidance, with revenue visibility now at 86%—up from 82% in the prior year and 80% two years earlier. Backlog remains strong at $1.5 billion, while adjusted EBITDA margins are projected at 14.5% for 2027, matching fiscal 2026 levels. Earnings per share are forecast at $3.29, with long-term targets including a 15%–20% CAGR in revenue through fiscal 2030, reaching $3.5 billion to $4 billion. EBITDA margins are expected to rise to 18%–20%, while international revenue is targeting 35% of total sales.
The BlueHalo integration has delivered cost synergies ahead of schedule, with Phase 1 (organizational alignment) complete and Phase 2 (systems integration) at 50%–70% completion. AeroVironment operates under unified ERP, HR, and Salesforce systems, having won four to five $500 million-plus sole-source defense contracts in the past year, including for directed-energy systems, counter-UAS, and loitering munitions.
Unmanned aircraft systems (UAS) revenue surged 71% year-over-year, with the P550 long-range reconnaissance system securing a $117 million U.S. Army award. Directed-energy solutions, including the Locus X3 system, achieved a 100% success rate in U.S. Navy testing and contributed to a 70%+ reduction in drug cartel drone traffic at the southern border. Management expects the Locus franchise to exceed $500 million in annual revenue, with a $30 million investment in Albuquerque to expand production. The company also secured a $30 million contract for Germany’s Puma family of UAS and a $990 million U.S. Army IDIQ contract for Switchblade loitering munitions.
Counter-UAS and layered defense strategies are expanding, with the E-HEL laser weapon program marking the largest DoD production contract for laser systems. AeroVironment has also achieved its first direct commercial sale of a U.S. laser weapon to an international ally. Meanwhile, the Long-Range Kinetic Interceptor (LRKI) is advancing toward full-rate production in 12–18 months, with a Huntsville facility ramping up capacity. The Red Dragon system, developed during the Ukraine conflict, is positioned as a key revenue driver.
With a global footprint spanning 55 countries, AeroVironment’s stock closed at $153.50 on the day of the presentation, up 10% but down 36% over the past six months and 63% from its 52-week high of $417.86. The company’s market capitalization stands at $7.74 billion, with a P/E ratio of 36.13x. Revenue for the last twelve months reached $2 billion, representing 84% year-over-year growth, while book-to-bill ratios remain strong at 1.4 for the quarter and 1.5 over the prior 12 months. Revenue and EBITDA are expected to be concentrated in the second half of the fiscal year, with H2 accounting for 55% of revenue and 66.7% of EBITDA.
The company’s strategic focus remains on defense and aerospace, with a product mix shifting toward higher-margin systems. R&D spending is targeted at 7%–9% of revenue, down from the previous 10%–15% range, reflecting efficiencies from BlueHalo integration.
