Executive Summary
AeroVironment reported QQ1 2025 revenue of approximately $189.48 million, up 4.8% versus the prior-year quarter but down 3.8% sequentially. The quarter delivered a solid gross margin of roughly 42.1% and an operating margin near 12.2%, contributing to earnings per share of $0.75 and net income of about $21.17 million. Free cash flow was strong at $22.92 million, with operating cash flow of $28.35 million and capital expenditures of $5.43 million, underscoring durable cash generation and a cash balance of $81.16 million at period end. Net debt stood at negative $33.86 million, reflecting a conservative balance sheet with ample liquidity (current ratio 4.26; quick ratio 3.04).
The results demonstrate a robust profitability backbone supported by a 42% gross margin and disciplined cost management, even as top-line growth remains modest. The company continues to invest in R&D (~$24.6 million) to advance its UAS platforms and related services, balanced against a relatively steady SG&A cadence (~$33.8 million). While there is no explicit forward guidance in the provided data, AeroVironment appears well-positioned to benefit from defense and international demand in unmanned systems, supported by a strong liquidity buffer and positive free cash flow generation. Investors should monitor defense budget cycles, international orders, and product development progress (including M-UAS and HAPS initiatives) as potential catalysts or headwinds for the coming quarters.
Key Performance Indicators
QoQ: 277.64% | YoY:-8.42%
QoQ: 250.08% | YoY:18.64%
QoQ: 245.45% | YoY:15.15%
Key Insights
Revenue: QQ1 2025 revenue of $189.48m, YoY +4.8%, QoQ -3.8%. Gross Profit: $79.76m with gross margin 42.1%; YoY gross profit change +5.85%, QoQ +7.56%. Operating Income: $23.06m with margin 12.17%; YoY operating income down -8.42%, QoQ up +277.64%. Net Income: $21.17m with net margin ~11.17%; YoY net income up +18.64%, QoQ up +250.08%. EPS (diluted): $0.75; YoY +15.15%, QoQ +245.45%. Cash Flow: Net cash from operations $28.35m; Free cash flow $22.92m; Capex $5.43m. Balance Sheet: Cash and cash e...
Financial Highlights
Revenue: QQ1 2025 revenue of $189.48m, YoY +4.8%, QoQ -3.8%. Gross Profit: $79.76m with gross margin 42.1%; YoY gross profit change +5.85%, QoQ +7.56%. Operating Income: $23.06m with margin 12.17%; YoY operating income down -8.42%, QoQ up +277.64%. Net Income: $21.17m with net margin ~11.17%; YoY net income up +18.64%, QoQ up +250.08%. EPS (diluted): $0.75; YoY +15.15%, QoQ +245.45%. Cash Flow: Net cash from operations $28.35m; Free cash flow $22.92m; Capex $5.43m. Balance Sheet: Cash and cash equivalents $81.16m; Total assets $999.17m; Total liabilities $153.63m; Stockholders’ equity $845.54m. Liquidity/Leverage: Current ratio 4.26; Quick ratio 3.04; Net debt negative $33.86m; Cash balance supports optionality for R&D and potential M&A.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
189.48M |
4.79% |
-3.81% |
| Gross Profit |
79.76M |
5.85% |
7.56% |
| Operating Income |
23.06M |
-8.42% |
277.64% |
| Net Income |
21.17M |
18.64% |
250.08% |
| EPS |
0.76 |
15.15% |
245.45% |
Key Financial Ratios
operatingProfitMargin
12.2%
operatingCashFlowPerShare
$1.01
freeCashFlowPerShare
$0.82
Management Commentary
No earnings call transcript data was provided in the dataset. As a result, there are no management quotes or thematic highlights to extract for QQ1 2025. If transcript access becomes available, we will integrate themes on strategy, operational execution, and market conditions with contextual quotes.
Forward Guidance
No explicit forward guidance is included in the provided data for QQ1 2025. Nevertheless, the qualitative backdrop suggests that AeroVironment faces a stable to modestly improving demand environment for UAS products and services, underpinned by defense spending and potential international orders. In the absence of numerical targets, the sustainable cash flow generation and healthy balance sheet imply the ability to fund ongoing R&D (notably MUAS/HAPS) and opportunistic investments. Key items for monitoring include: (1) defense budget timing and allocations, (2) progress and uptake of HAPS and MUAS platforms, (3) international market penetration and partner programs, and (4) any changes in government contract awards or export controls that could affect growth trajectories.