AeroVironment Inc (0HAL.L) Q2 2025 Earnings Report

AeroVironment Inc. reported QQ2 2025 revenue of $188.46 million, a modest YoY lift of about 1% and a QoQ decline of 0.5%. Gross profit was $73.64 million with a gross margin of 39.1%, while operating income stood at $7.01 million for a 3.72% operating margin. Net income reached $7.54 million, yielding an EPS of $0.27. Despite a positive bottom line, profitability remains challenged by a higher operating expense base and a working-capital driven cash flow dynamic that produced negative operating cash flow of $3.64 million, though free cash flow (FCF) was a modest $1.79 million. The company ended the period with $68.96 million in cash and cash equivalents and a net cash position of approximately $18.68 million, alongside a strong liquidity profile (current ratio 4.61, quick ratio 3.36). Total assets were $1.019 billion with shareholders’ equity of $858.4 million and limited leverage (total debt $50.3 million; net debt negative $18.68 million). The quarterly narrative is tempered by margin compression vs prior periods, reflecting a mix shift and ongoing investment in R&D and go-to-market initiatives, and by working-capital intensity that weighed on cash from operations. The company does not publish forward guidance in the QQ2 filings; investors should monitor defense budgets, UAS demand, backlog progression in MUAS/HAPS, and international opportunities as primary near-term catalysts. Overall, AeroVironment maintains a solid balance sheet and strategic position in the expanding unmanned systems market, but near-term profitability and cash-flow normalization will be key focus areas for equity investors.