Wed, Mar 5, 11:01 AM (47 days ago)
AeroVironment, Inc. (AVAV) reported a challenging quarter ending January 25, 2025, with total revenue of $167.6 million, down 10% from $186.6 million in the prior year. The decline stemmed primarily from a significant drop in Uncrewed Systems (UxS) product sales, particularly international sales affected by geopolitical factors. Gross margin decreased slightly to 38%, while selling, general, and administrative expenses surged 58% due to acquisition-related costs. Net loss for the quarter was $1.8 million, contrasting with a profit of $13.9 million in the previous year. Cash flow from operations turned negative, reflecting decreased net income and adjustments in working capital. The company maintains a strong balance sheet with $47 million in cash and equivalents, down from $73 million in April 2024. Funded backlog increased to $763.5 million, although a stop-work order on certain U.S. government contracts poses risks. Looking ahead, the company is focused on integrating the recently acquired Tomahawk Robotics and navigating ongoing uncertainties in government contracts and supply chains. The upcoming acquisition of BlueHalo may further impact operations and financial stability, with potential dilution of existing shareholder value.