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Can AeroVironment Scale Autonomous Systems to Drive Growth?
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Key Takeaways
AVAV delivered $480.5 million in revenues, while Autonomous Systems revenues jumped 21% to $346 million.
Record funded backlog of $1.5 billion and $683 million in bookings provide stronger future revenue visibility.
New contracts for P550 and Switchblade 600 highlight continued demand for autonomous defense technologies.
AeroVironment’s (AVAV - Free Report) fiscal 2027 is off to a strong start, supported by record first-quarter revenues and a funded backlog. The company is seeing particularly strong momentum in its Autonomous Systems (AxS) segment, highlighting the growing importance of unmanned and autonomous capabilities in modern defense operations. AeroVironment generated $480.5 million in first-quarter revenues, up 6% year over year, while AxS revenues increased 21% to $346 million.
The company recorded $683 million in bookings, resulting in a 1.4 book-to-bill ratio. Funded backlog reached a record $1.5 billion, up 37% year over year, providing greater visibility into future revenues.
A key advantage for AeroVironment is its expanding portfolio of autonomous and unmanned defense technologies. The company develops systems spanning autonomous aircraft, precision strike, counter-UAS and directed-energy capabilities, allowing it to address multiple requirements across the modern battlefield. During the fiscal first quarter, the U.S. Army awarded AeroVironment a $117 million contract for its P550 system under the Long-Range Reconnaissance program. The company also received a $51 million Switchblade 600 order supporting the Army’s Lethal Unmanned Systems IDIQ. These awards demonstrate continued demand for AVAV’s autonomous and precision-strike technologies.
The company is also broadening its position across defense technology. Beyond autonomous systems, AeroVironment develops precision-strike, counter-UAS, space, directed-energy and cyber capabilities. This diversified portfolio could help AVAV capture a wider range of defense modernization opportunities as governments prioritize technologies designed for increasingly autonomous and contested battlefields.
Other Defense Stocks Benefiting From Autonomous Systems
Along with AeroVironment, other companies are also positioned to benefit from growing defense demand for autonomous and unmanned systems, as discussed below:
Red Cat Holdings (RCAT - Free Report) is gaining exposure to the autonomous-drone trend through its defense and national-security drone portfolio. Its acquisition of Apium Swarm Robotics has expanded its capabilities in autonomous swarming technology.
Kratos Defense & Security Solutions (KTOS - Free Report) also offers exposure through its unmanned-systems business, alongside broader defense technologies spanning space, electronics and other mission-critical applications.
AVAV Stock’s Earnings Estimates
The Zacks Consensus Estimate for fiscal 2027 earnings per share implies a decrease of 1.8% year over year.
Image Source: Zacks Investment Research
AVAV Stock Trades at a Discount
In terms of valuation, AVAV’s forward 12-month price-to-sales (P/S) is 3X, a discount to the industry’s average of 7.1X.
Image Source: Zacks Investment Research
AVAV Stock’s Price Performance
In the past three months, the company’s shares have lost 6.4% compared with the industry’s 16.2% decline.
Image Source: Zacks Investment Research
AVAV’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Can AeroVironment Scale Autonomous Systems to Drive Growth?
Key Takeaways
AeroVironment’s (AVAV - Free Report) fiscal 2027 is off to a strong start, supported by record first-quarter revenues and a funded backlog. The company is seeing particularly strong momentum in its Autonomous Systems (AxS) segment, highlighting the growing importance of unmanned and autonomous capabilities in modern defense operations. AeroVironment generated $480.5 million in first-quarter revenues, up 6% year over year, while AxS revenues increased 21% to $346 million.
The company recorded $683 million in bookings, resulting in a 1.4 book-to-bill ratio. Funded backlog reached a record $1.5 billion, up 37% year over year, providing greater visibility into future revenues.
A key advantage for AeroVironment is its expanding portfolio of autonomous and unmanned defense technologies. The company develops systems spanning autonomous aircraft, precision strike, counter-UAS and directed-energy capabilities, allowing it to address multiple requirements across the modern battlefield. During the fiscal first quarter, the U.S. Army awarded AeroVironment a $117 million contract for its P550 system under the Long-Range Reconnaissance program. The company also received a $51 million Switchblade 600 order supporting the Army’s Lethal Unmanned Systems IDIQ. These awards demonstrate continued demand for AVAV’s autonomous and precision-strike technologies.
The company is also broadening its position across defense technology. Beyond autonomous systems, AeroVironment develops precision-strike, counter-UAS, space, directed-energy and cyber capabilities. This diversified portfolio could help AVAV capture a wider range of defense modernization opportunities as governments prioritize technologies designed for increasingly autonomous and contested battlefields.
Other Defense Stocks Benefiting From Autonomous Systems
Along with AeroVironment, other companies are also positioned to benefit from growing defense demand for autonomous and unmanned systems, as discussed below:
Red Cat Holdings (RCAT - Free Report) is gaining exposure to the autonomous-drone trend through its defense and national-security drone portfolio. Its acquisition of Apium Swarm Robotics has expanded its capabilities in autonomous swarming technology.
Kratos Defense & Security Solutions (KTOS - Free Report) also offers exposure through its unmanned-systems business, alongside broader defense technologies spanning space, electronics and other mission-critical applications.
AVAV Stock’s Earnings Estimates
The Zacks Consensus Estimate for fiscal 2027 earnings per share implies a decrease of 1.8% year over year.
Image Source: Zacks Investment Research
AVAV Stock Trades at a Discount
In terms of valuation, AVAV’s forward 12-month price-to-sales (P/S) is 3X, a discount to the industry’s average of 7.1X.
Image Source: Zacks Investment Research
AVAV Stock’s Price Performance
In the past three months, the company’s shares have lost 6.4% compared with the industry’s 16.2% decline.
Image Source: Zacks Investment Research
AVAV’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.