Amit Singh
4 min read
In This Article:
AeroVironment (AVAV), the defense technology company known for its next-generation unmanned systems and precision-strike solutions, has been on an impressive ascent. Over the past three months, its stock has surged over 112%, including a notable 21.6% jump on June 25 following a blowout fiscal Q4 earnings report.
This rally in AVAV stock reflects the robust demand for its specialized defense solutions, particularly its Loitering Munition Systems (LMS), which include Switchblade drones. These systems have become increasingly vital in modern warfare, delivering precision strikes and real-time intelligence.
Demand for AeroVironment’s battle-proven technology is accelerating, as reflected in its latest financial results. The company posted $275 million in revenue for Q4, a 40% jump compared to the same period last year.
Furthermore, AeroVironment concluded fiscal 2025 with record revenue of $821 million, representing a 14% year-over-year increase, despite lower revenue from Ukraine, an area that has been supporting its growth. Still, Ukraine contributed 18% of total annual revenue and 12% of Q4 revenue. Management expects this to shrink to under 5% in FY 2026, though orders for upgrades to existing fleets, such as the Puma and Switchblade drones, continue to come in. This transition marks a pivot toward a more diversified revenue base.
That diversification is evident in AeroVironment’s international footprint. More than half of its revenue came from overseas markets, with non-Ukraine European nations making up over 24%. Orders from eight different countries for its Switchblade drones totaled nearly $250 million in FY2025, while international demand for its JUMP 20 system — a medium uncrewed aircraft system (MUAS) — generated close to $100 million in orders in the fourth quarter alone. Over half of those JUMP 20 orders were from outside the U.S.
From a product standpoint, AeroVironment’s LMS division ended the year with $138.3 million in revenue in Q4, primarily driven by the Switchblade 600 platform, which contributed roughly 80% of that total. Its Uncrewed Systems (UxS) segment also performed strongly, pulling in $112.6 million, up 9% year-over-year. The Puma drones made up over half of the UxS revenue, while JUMP 20 contributed nearly 20%.
