AeroVironment Reports FY25 Revenue Up 14%, Profit Down Amid Higher Costs

AeroVironment reported a decline in annual profit to $43.62 million, or $1.55 per share, due to higher cost of sales and expenses. However, revenue increased 14% to $820.63 million, driven by strong product revenue performance. Adjusted EBITDA rose to $146.4 million from $127.8 million last year.

AeroVironment Inc. (AVAV) reported mixed financial results for fiscal 2025, with a decline in annual profit despite a significant increase in revenue. The defense technology company announced that its net income attributable to the company fell to $43.62 million or $1.55 per share, down from $59.67 million or $2.18 per share in the prior year [1]. However, revenues climbed to $820.63 million from $716.72 million, representing a 14% increase [1].

The company attributed the decline in profit to higher cost of sales and other expenses. Despite this, adjusted earnings per share rose to $3.28 from $2.99 in the prior year, indicating improved performance on an adjusted basis [1]. Pre-tax income also declined to $39.66 million from $63.23 million, while adjusted EBITDA increased to $146.4 million from $127.8 million [1].

AeroVironment's stock ended Thursday's trading at $249.73, down 2% from the prior day's close of $254.81 [2]. The stock outperformed the S&P 500's 0.32% daily gain and the tech-heavy Nasdaq's 0.14% gain, but lagged the Aerospace sector's 3.63% gain and the S&P 500's 3.08% gain [2].

Investors are closely monitoring AeroVironment's earnings performance, with the company projected to report earnings of $0.34 per share, representing a year-over-year decline of 61.8% [2]. The latest consensus estimate predicts the revenue to be $453.5 million, indicating a 139.34% increase compared to the same quarter of the previous year [2].

The Zacks Consensus Estimates project earnings of $3.23 per share and revenue of $2 billion for the full year, representing changes of -1.52% and +144.32% from the prior year, respectively [2]. AeroVironment is currently ranked as a #4 (Sell) by the Zacks Rank system [2].

The company is trading at a Forward P/E ratio of 77.51, which is a premium compared to the average Forward P/E of 39.06 for its industry [2]. The Aerospace - Defense Equipment industry, which includes AeroVironment, has a Zacks Industry Rank of 159, placing it in the bottom 36% of all 250+ industries [2].

References:
[1] https://www.rttnews.com/3566422/aerovironment-annual-profit-declines-revenue-up-14.aspx
[2] https://www.nasdaq.com/articles/aerovironment-avav-outpaces-stock-market-gains-what-you-should-know-0