• The military's DJI for tactical drones and loitering munitions.
• A specialized Lockheed Martin, focused exclusively on advanced tactical unmanned aircraft systems for defense.

AeroVironment (AVAV) Major Products:

• Tactical Unmanned Aircraft Systems (UAS): These small, portable drones are used for military reconnaissance, surveillance, and target acquisition in various operational environments.
• Loitering Munition Systems: These unmanned aerial vehicles are designed to loiter over an area and provide precision strike capabilities against identified targets.
• Unmanned Ground Vehicles (UGVs): These robotic systems are used for hazardous duty operations, including explosive ordnance disposal (EOD), reconnaissance, and material handling.
• High-Altitude Pseudo-Satellite (HAPS) Solutions: AeroVironment develops advanced stratospheric aircraft technology aimed at providing persistent, high-altitude communication and observation platforms.

AeroVironment (AVAV) primarily sells its advanced unmanned aircraft systems (UAS), tactical missile systems, and related services to government entities, particularly defense organizations, rather than directly to individuals or a multitude of commercial companies. Therefore, its major customers fall into the following categories:

• U.S. Government: This is AeroVironment's largest customer, consistently accounting for a significant majority of its net revenues (e.g., typically over 60% in recent fiscal years). Sales to the U.S. Government include various agencies and branches of the U.S. Department of Defense (DoD), such as:

  • U.S. Army
  • U.S. Marine Corps
  • U.S. Air Force
  • U.S. Navy
  • U.S. Special Operations Command (SOCOM)

  The U.S. Government is not a public company, so there is no symbol.

• Allied Foreign Governments: AeroVironment also sells its products to various allied governments internationally. These international sales to foreign governments represent a substantial portion of their remaining revenue. These are sovereign entities, not public companies.

• Commercial Customers: While a smaller portion of their overall revenue compared to government sales, AeroVironment does have commercial customers. However, specific commercial company names are not typically disclosed as "major customers" in their public filings unless they individually represent a significant portion of revenue, which is not the case for any single commercial entity for AVAV.

Wahid Nawabi Chairman, President & Chief Executive Officer

Wahid Nawabi has served as Chairman, President, and Chief Executive Officer of AeroVironment since 2016, becoming Chairman of the Board in September 2021. He joined the company in 2011 as Senior Vice President and General Manager of the Efficient Energy Systems (EES) business segment. Before joining AeroVironment, Nawabi spent 16 years at American Power Conversion Corporation (APC) in various leadership roles, including Vice President of the enterprise business segment. He was instrumental in growing APC from $50 million to over $2.4 billion in annual revenue, which culminated in its sale to Schneider Electric for $6.1 billion, marking the largest acquisition in Schneider Electric's history. He holds a bachelor's degree in Electrical Engineering from the University of Maryland at College Park.

Kevin McDonnell Senior Vice President & Chief Financial Officer

Kevin McDonnell was appointed Senior Vice President and Chief Financial Officer of AeroVironment in February 2020. With over 30 years of experience in financial, IT, and HR leadership, he previously served as CFO of JAMS, Inc., where he contributed to nearly doubling the company's revenue and EBITDA. McDonnell held senior financial positions at Teradata Corporation during a period of significant growth, and as CFO of Digital Insight, he was key in substantially increasing annual revenue, taking the company public, and overseeing three acquisitions. He is also noted as the founder of DoubleBeam, Inc., established in 2011. He earned a J.D. from Loyola Law School and a Bachelor of Arts degree in Business Administration from Loyola Marymount University.

Brad Truesdell Chief Operations Officer

Brad Truesdell has served as AeroVironment's Chief Operations Officer since May 2025, bringing over 25 years of military and defense industry experience to the role. Prior to joining AeroVironment, he founded Tomahawk Robotics in 2018, a company specializing in AI-enabled robotic control systems, which AeroVironment acquired in 2023. His career also includes various leadership positions at Harris Corporation.

Scott Bowman Chief Technology Officer & Senior Vice President of Global Engineering

Scott Bowman became AeroVironment's Chief Technology Officer & Senior Vice President of Global Engineering in 2025. He possesses over 18 years of experience in technical leadership and engineering management, with expertise spanning robotics, controls, RF systems, networking, and software development. Bowman joined AeroVironment in 2023 following the acquisition of Tomahawk Robotics, where he played a crucial role as Product Line Manager in unifying AeroVironment's Ground Control Station (GCS) vision.

1. Proliferation of Low-Cost, Commercially-Derived Unmanned Aircraft Systems (UAS) and Loitering Munitions: The rapid development and battlefield deployment of inexpensive, adaptable, and often commercially-derived UAS and loitering munitions by numerous global players and even non-state actors is a clear emerging threat. These systems challenge traditional defense contractors like AeroVironment by offering highly attritable, mass-producible alternatives to specialized tactical UAS and missile systems. This trend forces AeroVironment to compete on price, speed of innovation, and expendability, potentially eroding market share for their higher-cost, specialized solutions and increasing the demand for counter-UAS technologies.

2. Rapid Expansion and Enhanced Capabilities of Low Earth Orbit (LEO) Satellite Constellations: The accelerating deployment and increasing capabilities of large LEO satellite constellations (e.g., Starlink, Kuiper) for global, high-bandwidth, low-latency communication and intelligence, surveillance, and reconnaissance (ISR) present a direct emerging threat to AeroVironment's High-Altitude Pseudo-Satellite (HAPS) systems. While HAPS offers localized persistence, LEO constellations provide increasingly robust and widespread coverage, potentially offering a more scalable and cost-effective alternative for many applications previously targeted by HAPS, thereby limiting the market potential or unique value proposition of AeroVironment's HAPS offerings.

AeroVironment, Inc. (AVAV) operates in several key markets, primarily focusing on unmanned systems and related technologies. The addressable markets for its main products and services are significant and include:

• Total Addressable Market (TAM): According to management estimates, AeroVironment's total addressable market is expected to exceed $75 billion by fiscal year 2030. This global market includes approximately $23 billion in space technology, $17 billion in defensive systems, $15 billion in uncrewed systems, and $10 billion in offensive systems. These figures reflect budgets already being funded across NATO and allied nations.
• Loitering Munitions: The global loitering munition market was estimated at USD 4.30 billion in 2024 and is projected to reach USD 6.26 billion by 2030, growing at a compound annual growth rate (CAGR) of 6.4% from 2025 to 2030. North America held the largest share of this market in 2024, with Asia Pacific showing rapid growth. Other estimates place the global market at approximately USD 635.88 million in 2025, forecasted to reach USD 1,066.43 million by 2030 with a CAGR of 10.89%.
• High Altitude Pseudo-Satellites (HAPS): The global High Altitude Pseudo-Satellite (HAPS) market was valued at approximately USD 0.936 billion in 2024 and is projected to grow to USD 8.076 billion by 2035, exhibiting a CAGR of 21.64% from 2025 to 2035. Another estimate places the market at USD 85.30 million in 2025, expanding to USD 210.33 million by 2030 at a 19.78% CAGR. North America accounted for 33.97% of the HAPS market revenue in 2024, with Asia-Pacific projected for the fastest growth.
• Tactical Unmanned Aerial Vehicles (UAVs) / Small Unmanned Aircraft Systems (SUAS): The global tactical UAV market was valued at USD 4.26 billion in 2024 and is estimated to reach USD 10.93 billion by 2033, with a CAGR of 10.47% during 2025-2033. Another source forecasts the market at USD 6.19 billion in 2025, advancing to USD 11.40 billion by 2030 with a 12.97% CAGR. North America dominates this market, holding over 45.0% market share in 2024, with the United States alone accounting for around 92.40% of the North American market in 2024.
• Unmanned Ground Vehicles (UGVs): The global unmanned ground vehicles market was valued at USD 2,979.7 million in 2023 and is expected to reach USD 4,472.1 million by 2030, growing at a CAGR of 6.1% during the forecast period (2024–2030). Another assessment values the market at USD 3.94 billion in 2025, predicted to increase to approximately USD 8.80 billion by 2034 at a CAGR of 9.5% from 2025 to 2034. North America held the highest revenue share, over 41%, in 2024, with the U.S. market estimated at USD 1.13 billion in 2025, projected to be around USD 2.58 billion by 2034.

AeroVironment (AVAV) is expected to drive future revenue growth over the next 2-3 years through several key factors:

1. Strong Demand for Loitering Munition Systems (LMS): The company anticipates continued robust demand for its Loitering Munition Systems, especially the Switchblade 300 and 600. The Loitering Munition Systems segment was a primary growth driver in the first quarter of fiscal year 2025, with revenue increasing by 68% from the same quarter last fiscal year. Recent contract wins, such as the U.S. Army's $1 billion IDIQ contract, and the selection of Switchblade 600 for Tranche 1 of the U.S. DOD's Replicator initiative, further underscore this growth. AeroVironment has also expanded its production capacity to meet this increasing customer demand.
2. Strategic Acquisition and Integration of BlueHalo: The acquisition of BlueHalo is a significant driver of future revenue. This acquisition closed in May 2025 and is expected to substantially enhance AeroVironment's capabilities in high-priority defense areas, including space, cyber, and directed energy. The integration of BlueHalo contributed significantly to revenue in Q1 2026, adding $235.2 million and boosting overall revenue by 140% year-over-year. This strategic move positions AeroVironment as a next-generation defense tech prime with an all-domain portfolio.
3. Growing Backlog and Bookings: AeroVironment has demonstrated a healthy and increasing funded backlog and strong bookings, providing excellent visibility into future revenue. The company reported a record backlog of $1.1 billion in Q1 2026, up from $726.6 million, and secured $1.2 billion in total bookings in fiscal year 2025. This substantial backlog indicates sustained customer demand for its innovative and battle-proven solutions.
4. Expansion of Addressable Market and Diversified Portfolio: AeroVironment is actively expanding its addressable market, with plans to reach at least $75 billion by fiscal year 2030. The company's diversified portfolio across air, land, sea, space, and cyber, combined with its ability to scale manufacturing, positions it well to capture growing demand in the defense technology sector. This multi-pronged business model, encompassing various advanced technologies, is expected to fuel continued growth.

Share Repurchases

• AeroVironment has not reported significant dollar amounts of share repurchases over the last 3-5 years.

Share Issuance

• In July 2025, AeroVironment completed a public offering of 3,528,226 shares of its common stock at $248.00 per share, generating approximately $875.0 million in gross proceeds.
• Concurrently in July 2025, the company completed a public offering of $747.5 million aggregate principal amount of 0% convertible senior notes due 2030.
• The net proceeds from these offerings, totaling approximately $1.47 billion, are expected to be used for debt repayment and general corporate purposes, including increasing manufacturing capacity.

Outbound Investments

• In February 2021, AeroVironment acquired Progeny Systems Corporation's Intelligent Systems Group (ISG) for $30 million in cash, with a potential earnout of up to $6 million over three years.
• AeroVironment completed the acquisition of BlueHalo for approximately $4.1 billion in an all-stock transaction in May 2025, significantly expanding its capabilities in space, cyber, and directed energy.

Capital Expenditures

• Capital expenditures for fiscal year 2026 are projected to be $60-$70 million, primarily to complete the Utah build-out.
• The company's capital expenditure budget is typically around 5% of annual revenue.
• Increased CapEx guidance for FY2026 reflects accelerated investment plans in key growth areas such as space communications, directed energy, counter-UAS, and unmanned systems to scale production capacity.