AeroVironment Posts Record Revenue but Swings to $67 Million Loss on Integration Costs

Yesterday we were watching whether AeroVironment could prolong its explosive gross trajectory portion returning to profitability. The defence drone shaper delivered a crisp net miss aft the doorbell connected December 3, and this greeting the banal is trading astir down significantly.

AeroVironment reported Q2 fiscal 2026 net per stock of $0.44, missing the $0.80 estimation by 45%. This marks the 3rd miss successful 4 quarters and the worst astonishment percent since January 2025. Revenue show wasn't the issue. The institution much than doubled year-over-year income to $454.7 million, representing 140% growth. The occupation was profitability.

Gross margins collapsed to 20.9% from 43% successful the prior-year quarter, arsenic outgo of goods sold surged to 79% of revenue. The institution swung from a $21.2 cardinal nett successful Q2 fiscal 2025 to a $67.4 cardinal nonaccomplishment this quarter. An bonzer $90.3 cardinal depreciation and amortization charge, up from emblematic quarterly levels of $8 cardinal to $14 million, drove overmuch of the damage. This spike suggests important acquisition integration costs oregon plus adjustments.

Interest disbursal besides jumped to $17.4 cardinal from conscionable $1 cardinal the anterior quarter, pointing to caller indebtedness oregon acquisition financing. Operating losses reached $69.3 cardinal contempt the gross surge.

The archetypal after-hours absorption was severe. Shares dropped from astir $284 to $251 wrong minutes of the release, erasing astir $1.6 cardinal successful marketplace value.

The 8-K filing released December 9 should incorporate captious guidance updates and absorption commentary connected borderline recovery. Investors request clarity connected whether the borderline compression reflects impermanent integration costs oregon a structural displacement toward lower-margin authorities contracts. We'll update if expert revisions oregon absorption statements supply worldly caller discourse arsenic the league progresses.

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