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Jan 25
AeroVironment Q3 2025 Earnings Report
AeroVironment reported a revenue decline and a net loss in Q3 2025.
Key Takeaways
AeroVironment posted Q3 2025 revenue of $167.6 million, down 10% year-over-year, primarily due to a 44% decline in Unmanned Systems revenue. The company recorded a net loss of $1.8 million, with non-GAAP EPS at $0.30. Despite challenges, funded backlog reached a record $763.5 million, reflecting strong future demand.
Total revenue declined 10% year-over-year to $167.6 million.
Net loss was $1.8 million, compared to net income of $13.9 million in Q3 2024.
Non-GAAP EPS came in at $0.30, down from $0.63 in the prior year.
Funded backlog hit a record $763.5 million, supporting future growth.
AeroVironment
AeroVironment
Forward Guidance
AeroVironment expects fiscal year 2025 revenue between $780 million and $795 million, with non-GAAP EPS projected between $2.92 and $3.13. The company anticipates strong Q4 performance driven by increased production capacity and new contract awards.
Positive Outlook
- Full-year revenue guidance set between $780 million and $795 million.
- Non-GAAP EPS expected to range from $2.92 to $3.13.
- Expansion of manufacturing capacity to meet demand for loitering munitions.
- Funded backlog at record levels, indicating strong future revenue.
- Strategic acquisition of BlueHalo expected to enhance capabilities.
Challenges Ahead
- Revenue declined 10% year-over-year in Q3 2025.
- Unmanned Systems segment revenue fell by 44%, impacting overall performance.
- Increased selling, general, and administrative expenses due to acquisition costs.
- Macroeconomic uncertainties and supply chain disruptions remain challenges.
- U.S. Army stop-work order affects approximately $13 million in backlog.