AeroVironment (AVAV) 4 Sep 242025 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the AeroVironment Fiscal 2025 First Quarter Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jonah Teeter-Balin. Please go ahead.

ladies afternoon, good and and gentlemen. Thanks, AeroVironment's to Fiscal Year Call. Earnings Quarter First XXXX Welcome Teeter-Balin, of Vice Investor Jonah is This President Relations. Corporate and Development

from and content at release our with Relations Investors section website Investor slide information time-sensitive this filings afternoon, the on of presentation the team. risks Securities forward-looking only information conference uncertainties differ risks earnings Litigation the as company's in Before information XX-K a particular, filed Act of results that to we of to to within The these note other obligation to Presentations. The please statements of Statements them our or no our Reform to that www.avinc.com of Events or meaning call this also call presentation involve contains could and the posted This These on such actual and remarks many the in Further the accurate expectations. filings. available is the Private and any the we reflect or our circumstances on our this X, events Copies and after statements conference September to call. revision in uncertainties undertakes SEC contains forward-looking AeroVironment with make portions materially the company Factors in that any SEC are contained of from Risk the update website XXXX. forward-looking from XXXX. and today occurring begin, statements presented today, contained is certain cause under section

Financial Senior Officer, Chairman, Vice Chief McDonnell. and Mr. Nawabi; from Officer, today are Kevin AeroVironment Executive me and Mr. Joining President and Chief Wahid President

begin from now Wahid? Wahid will Nawabi. remarks with We

recent Welcome, expectations. your finally, detail. quarter will I results Jonah will after XXXX I greater fiscal Jonah. and financial year expectations and in achievements, to conference and which of take for summarizing results, questions. I'm by report in of fiscal you, call. year another our will Kevin provide our First performance remainder quarter pleased everyone, review with Thank will XXXX Kevin, start earnings excellent our our then to I our the line

messages, to company. quarter Slide a from last are million, as our XX% of First rose revenue the set the revenue follows: quarter are included fiscal which Our first, $XXX.X same a key increase #X and earnings record year new first on for quarter presentation

now Switchblade opportunities we're such our book Second, backlog anticipate IDIQ billion and increase coming to to key Army U.S. recent contract as quarters. in starting $X funded

record record another quarter our for fiscal are $XX we Systems year results year strong previously first Third, Munition Loitering while retaining its a and continues nearly autonomous achieve increase. XXXX. stated profitability. position us guidance as to quarter fourth, our market. We and We And manufacturing is the reaffirming to focused innovation, revenues million, program high leading a rise. this agile growing of core our growth demand segment allowing our XX% position performance execution, quarter on pipeline, momentum toward year-over-year customer in of first were robust our which revenue upward continues quality, to for awards These key for extend remain and us and strong and given fiscal able our systems dynamic product in levels strength relationships,

is XXXX in the sector. tech As believe customers' urgent our pipeline increasing through AV meet ensure needs expands, We capacity the our and we beyond. company we strongest our year production continue to fiscal defense

U.S. to robust trusted handle growing growing solutions, international battle-tested install equipped well unrivaled meet and demand manufacturing are relationships short, we customers' the industry-leading urgent to are capacity base, and large needs. across customer and We globe. unparalleled positioned an our technology, In

Munitions proud serve their to we're our our VITAL and Loitering customers and in remain systems franchises, missions. Uncrewed Our key

ahead we're of three business for results, quarter beyond. our Result first our fiscal of XXXX with I each Loitering LMS. would segments, what year pleased with discuss to lies are the from like more remainder now about starting we While Munition even and or excited Systems

As first of the LMS XX% year wins, XXXX. Demand remained driver same year the in I quarter by funded last quarter LMS demonstrated our revenue which are for Switchblade grew was XXX for fiscal $XX strongest backlog. of mentioned reflected as growth yet fiscal strong both many and to our XXX million. from earlier, recent not

initiative. XXX our able to first manufacturing of was capacity, X robust quarter, we [ U.S. the selected Replicator Switchblade begin deliveries almost for immediately. the During Tranche And of DoD's were because ]

sale Taiwan announced approval an XXX. the Switchblade for to Additionally, DoD for the FMS U.S.

directive we quarter under reflected first funded ceiling task million week, a systems, backlog. first unmanned lethal last the Just requirement award a sole which with value $XXX a is of that award in is This source X-year of our Army's received for not the $X IDIQ part U.S. billion. quarter contract is nearly

cash our usage New working last will also will capital shortly. that for this payments for deliveries flow terms begin will allow and help quarter and improve progress

committed customers' solutions is and and rise to important our zones As increasing active [ volume meeting conflict this domestically the a as expectations. earnings wins demonstrate is need demand our for AV to urgent on for large competitive ability multiyear abroad, both calls. our reminder, prior rises. Demand and Switchblade the to significant validate contract discussed market and These in ] our deliver IDIQ the as highlight positioning continues and in

more growth in to Our $XXX manufacturing and capacity million prepared XXXX, annual is we're expanding the fiscal future. capacity Switchblade revenue additional year in to support in product than support

beyond beginning stages cycle, Loitering We the is anticipate we and where fiscal Munition of beyond expand only year of fiscal this at We're this in momentum location XXXX. LMS continued additional are also that the selecting business process an the we confident strong growth year. manufacturing can our

an same Systems the quarter of year. Now on last our XX% from million, Uncrewed to the increase segment. for first was quarter $XXX Revenue

demonstrated its remains conflict dominant our importance continuously workforce. segment has Systems Puma and profit current and the driver ISR franchise largely effectiveness platforms. Uncrewed revenue XX in due JUMP strongest Puma Our and our as to

for our aide about latest optimistic anticipate with The just the autonomous long-range ]. Army's AI and part we global for platform the delivery We recently PXXX. X maximum payload XXXth [ long-range small as advantages missions Ukraine, UAS to and of completed and additional advanced U.S. also In Group fact, recently for called this Army's of of reconnaissance variant program is orders program capabilities LRR. purpose-built recently or versatility. demand the is proposal package. We're our record capabilities [ booking product enhanced announced and part U.S. PXXX the This anticipate ] strong features of the we our submitted beyond Ukraine reconnaissance

make XX still we're in on actively opportunities. this market, and to international progress multiple JUMP In addition, our and engaged system domestic continues

to JUMP increase favorable and and we Given fiscal feedback international USS anticipate platforms, on XX our beyond. for XXXX year demand in PXXX Puma, domestic solutions

meaningful our past Moving growth Works made quarter, long-term we capabilities. Technology next-generation opportunities. expanding our toward to now autonomous solutions developments segment. within MacCready drive and and our This MacCready developing to the continue progress Works AI

Day For in of June, during send live NASDAQ a ability our operating example, had City thousands away. our New Uncrewed and to demonstration past we systems mission Investor to York California highlighting this Kansas, from headquarters miles in objectives

task intervention. a autonomously powerful in pushing user ability systems demonstration of we're able systems. autonomous from then of systems away without environments. of those was hundreds to miles thousands the Our possible missions live contested This of any to operate UAS example This showcases demonstration Uncrewed complete while in how autonomous fully boundaries were our these what's

for is Another ancillary priority for focused design program MacCready key operations. UAS ship-based Works DARPA's on

now in our segment a create continues its and year to our for contract financials. next-generation continue Kevin million As to solutions focus Works well Kevin? solutions follow-on would like ] make customers that, this of fiscal maritime MacCready review this Works summary, generated over both from market. by fiscal [ the was emissions for beyond role Works a continue for of good later XXXX. for on $XX the HAPS look MacCready SoftBank will significant call become our year. With I innovative the commercial more forward on platform. MacCready exciting to awarded important HAPS fulfill fueling to multiple developing developing continues turn growth quarter mission first business development progress the and to announcements our to systems And defense finally, customers, this a play we applications. In advantages and to critical McDonnell to

you, highlights record highest adjusted first were Today, the release our our both gross available to in earnings quarter refer be revenue strong. revenue history. quarterly Adjusted occasionally another the will EBITDA I'll with and on second had of and Thank press Overall, presentation reviewing the financial I we performance Wahid. first quarter quarter also margin website. during and company's which our outstanding

first breakdown of to quarter $XXX.X XX% the the As Wahid first quarter earnings the of of million for fiscal revenue $XXX.X provides for in the an revenue by a remarks, X fiscal million, quarter. XXXX. Slide the for compared segment presentation as increase of his of XXXX was mentioned

quarter ] UxS, UxS XX% up revenue during combination a UGV UAS Uncrewed which of is and of UAS, in quarter, businesses. during segment medium $XX.X small XX% vehicle, also and our largest was products the of $XXX but or Our had ground, million which the Systems, XX our the last is of for demand we UxS Raven [ JUMP total from accounted from remained year's million. Puma quarter. revenue, saw strong, contributions meaningful

LMS quarter. in recognized a be firm segment, million which partially of and to in revenue. Most of customer the and the to services, orders product the came a were finalized, by final we [ will Systems first last the full U.S. during the half LMS breakdown quarter there's by definitized, from for at Munition a as segment which Loitering than timing government-related Slide year. XXX over of million, product still price quarters. margin adjusted margins million from MacCready However, increase products. Revenue award Switchblade revenue More in year, impacted of $XX $XX.X order improvements the LMS, quarter LMS between Switchblade Works contract during gross XXX couple XX% in for revenue negatively of while determined services $XX.X been for and million, undefinitized primarily expect recorded service compared price. Our came to approvals not during or first EBITDA the our products has contract LMS equipment the ]. In earnings the or fiscal of margin orders a the The decrease the the quarter the driven last occur has of expect year the when presentation, as placed in without from is the meaning revenue adjusted is impacting next the XX% we compared last the remainder X the year $XX.X is

UAS, small than of quarter strong the Specifically, corresponding and product for previous vehicle is quarter, during revenue total higher primarily from both XX% product the in our to which XX% the revenues, the year, saw LMS the accounted revenue of first due ground businesses. we

We foreseeable of expect product above percentage to as for revenue remain a XX% revenues the future.

first the the product Moving to of X shows presentation and Slide of reconciles margin amortization gross finished margin expense of gross GAAP In and which items. gross at intangible year. Slide gross first with to while gross XX%, service excludes adjusted adjusted XX noncash the trend ] GAAP margins, last the margins, quarter, quarter consolidated earnings purchase margins. line other accounting [ in the

gross We high both margins year adjusted we versus of from strong increased First of were to first quarter margins XX% the were adjusted product decline had adjusted of as coming We expect UxS the adjusted quarter LMS. do XX% and first gross last year. revenue product period margin. margins, In same is gross XX%, fiscal with in gross the margins to consistent contribute quarters see quarter which for last revenues year. Adjusted year product in this the last terms product quarter gross in which

service margins, last first the XX% of In XX% quarter year. adjusted terms at gross was same versus quarter the during

overall We the margins year. approximately XX% be expect to gross for adjusted

for of reconciliation XX% next-generation million result amortization intangible for head increase count of or in $XX dollar XX% increase along of earnings offset for of for was a in the XX% higher continued year. activity entire and revenue investments a by or primarily fiscal in were Tomahawk the prior was or In Slide R&D In increased GAAP R&D AV $XX year with increase expenses. of $XX incorporation to sales adjusted in in to the company X acquisition-related teams. R&D is income to $XX support support expenses make to line, related million expense, investments in both includes driven the in the still of of EBITDA. revenue the net our and products, of compared range increase million regarding our R&D of R&D or percentage XX% the terms fiscal adjusted of into the UAS primarily from an revenue expense, SG&A quarter of million as employee-related of and of revenue PXXX of year as the average prior year. half first product SG&A is of businesses. to to increased our and Over our first adjusted [ million the in XX% to due product growth terms due XXXX, of Group controller The continues first costs by revenue $XX in long-term development of quarter acquired across increase a UxS the global investment version our gross business ], for to the of enhanced bid capabilities revenue activities EBITDA, XXXX in be XX of margin development and help proposal sales the and to lines in during presentation result our including variants. expense new the EBITDA and of the expenditures and expansion the JUMP quarter marketing a flat XX% SG&A products. initiatives. fiscal XX The Switchblade and an to quarter new was the incremental first quarter existing expense compared growth maritime excluding shows last We LMS our expect

net $XX.X net of period versus gross the SG&A same in were equity the reconciliation XXXX. a and adjusted increase million by GAAP a generated $X.X The XXXX amortization share and million several million [ expense, a shows per $X.X in $XX.X the million first quarter an integration last the the in in $XX.X of the $X.XX costs. Slide margin, interest including can turning in namely be or $X in decrease $X.X offset posted ] first million expenses, million decrease company $X.X These attributed partially to diluted in non-GAAP and million activity for decrease diluted and decrease deal XX of first per versus factors, company earnings of to of EPS. quarter quarter, of R&D. fiscal $XX adjusted million In recorded income The a $X.X fiscal in share investment of intangible net income in earnings. [indiscernible] GAAP increase Now year. increase million a income and

at a our to inventories. of At $XX turning close the quarter, fourth cash $XX.X balance was $XXX during of quarter million, Free largely and the decreased Lastly, to first the million sheet. quarter compared result total flow the end of our million 'XX. cash investments now amounted the was which to FY of

our carry to LMS largely of high continue We a segment. receivables business amount attributable to unbilled

coming in year expect and We to quarters. announced for unbilled recently for payment reduction overall anticipate orders payments the to Army IDIQ but products, see we'll the new that the an capital the uses in quarter-to-quarter reduction Army collect will we With fluctuate under receivables revenue new a on the as working see from U.S. start Switchblade we progress terms. anticipate

$XX.X an the down paid quarter our first also facility. in on additional term loan We million

Now I'd to Wahid. to turn like things back

Thanks, Kevin.

our Given our execution, year we stated awards a key contract robust are and fiscal previously strong guidance XXXX. pipeline, for reaffirming

year of and XXXX backlog recent healthy of order revenue XX% fiscal the to midpoint rate our visibility Our guidance.

expect as our our revenue orders business the and to first segments. full autonomous continue opportunities confident demand increases about we to fiscal our and on these full revenue year guidance of other growth strong achieving focused half solutions, revenue. In converting are pipeline global for across represent Uncrewed continue AI-enabled We're We our into year. to anticipate and in summary, in XX% awards

our start solutions. for Our to our Switchblade U.S. be belief increase strong XXXX by positioned are investors, and customers. year and that great quarter and this will employees fiscal for XX our demand, especially supports benefit international a budget priorities an year JUMP DoD well encouraged in from We're

Our well itself year that shareholder extends creation strong beyond anticipated XXXX. fiscal value growth lends to

call today's summarize takeaways let the call. turning from the over Before for me questions, key

grew fiscal setting new to First, year quarter $XXX.X first record. million, a first revenue XXXX quarter

Second, backlog we and such anticipate key now $X [ starting are contract recent RV US funded increase in to book Switchblade billion our as quarters. coming opportunities, ] to IDIQ

they for emulation another Loitering fitting the year for company. record your Systems our you ] at excited would your stronger, be business ally to solutions fiscal fiscal country provides growth shareholders segment anticipate I and and XXXX. the to Thank what's throughout for to the now and like will that grateful the continues that, also their year with our our And support. for fundamentals driver been the missions. Jonah team to fourth, Third, Kevin, of AeroVironment vital serve time. And be need We're and I XXXX our with key never company achieve incredible and ahead we the to take customers will this continued critical our year customers [ thank have that questions.

from first the RBC Herbert line will Our Capital Instructions] [Operator Markets. come of Ken question with

already just maybe guide should week. last you wanted to think Wahid, full first, you week obviously about the year to IDIQ maintained we contract the ask, announced the with were amounts How sign I that or last able a that And initial IDIQ it's lot to and 'XX of task funding outlook? fiscal guessing fair the order in factored or visibility assume into I'm was 'XX. basically the timing under

that's correct. Ken,

with [ the So contract. overall, billion sole-sourced pleased ] IDIQ we're $X very

key it new million book the a that. There's high, order Just $XXX first the record of against several One, the this for task before. for ceiling past company to really very this benefits week, is contract. we were approximately able ever for

the And this -- of of a baked there lastly, terms this mild yes, progress was is lot of our flow in also still our guidance. then Second, better is terms terms payments only of And first quarter. some into there equation. is cash payment in

So is these year to a a and got of that timing ourselves, continuing contracts the two, of U.S. also more questionable under Overall, a potentially the Number of forward looking is the the again task think for of up fantastic of able well. there is three this had on quarter, the the we convert and possibility an our upon based DoD's be quarters contract level to CR, I for do customers' updated additional we coming things one. we're orders customer. expect you workload and ahead although budget. We number there's as to and IDIQ election resolution keeping to rest ability that

And of XXX some pricing pricing? or if made some around XXX it could, and discussions few contracts that the you are maybe moving around having contracts? how you're these regarding possible recent we to the finalized. be some range I forward, the comments bracket some a the on should And for of maybe of on uncertainty uncertainty Is pricing yet Switchblade more considering about of some think to the

or we margins the both think be hopefully, our up possibilities at as that and year, adjusted Kevin, business as what improvement. that look for will certainly gross overall I And Well, the in adjusted show said, cleared here margins we the it's two. when next for quarter will EBITDA

to that, all things right will amounts and way But optimistic really can't speak for us. we're that. out specific like that we So the dollar turn

for that Baird. And our next Peter question. will with from come the line One of Arment moment

the released. fires, was only LASSO initial that that Replicator precision like mentioned you you funding Wahid, organic and released regarding

out those So of do releases during fiscal programs? other expect you this year tranches or

the this again, just cash Loitering alone one, this year. expect still the recall coming. a The will -- expecting. for throughout million very that to for fiscal Switchblade million another against a We that last don't timing believe be there's is There's ammunitions. more more IDIQ. We orders if our you have, quarter, million specifically example, fiscal the And of $XXX flow of exact again, year, potential timing. first segment record I thing difficult year Switchblade booked, our lot we do. which the to We we're for We $XXX worth and that predict was close $XXX mentioned those it's

both the year, be into order umbrella fiscal orders contracts. expect converted I expect additional that within this under believe or Switchblade this the process that to with is fiscal multiple new customers in we year. They're we our contract additional possibilities task a existing Although that ceiling

international also a FMS LMS signals mentioned opportunities. Maybe you on the you front, then an maybe you're remarks getting tied to from in demand could other there's maybe pretty is prepared talk to that or perspective, healthy I your And particular? pipeline guess, that the in

Yes.

fiscal they've are well. matter to in a side when It's and lined if. to as and is and military, it's progresses, growing up as process. the this. our on and front. takes year expect that my have very beyond a procure to these the pipeline to demand They're the with come by Taiwan. year long that as several that not specifically a those Switchblade with the and But it of State opportunities There remarks, also engaged that the but we're budget that an earlier U.S. able eventually through well. we're to the state to customers, in for our opportunities are approved orders believe continue from just incredibly we for in call potential time. actively us military on we in the customers to I will We domestic going versus even with in. predict got of and and come desire. have mentioned international the just very, a it engaged for beyond those The only we Taiwan's Department be more additional order the the So the besides do strong actively exact Again, challenging when going process announcement is believe U.S. year working matter engaged throughout Switchblade department Taiwan of countries of convert timing

And that of Blair. come for DiPalma line will from with next moment one Louie the our And question. William

the contract going successor million that be $XXX LASSO next And awarded programs with is outside the Replicator program? separate of year? associated as LMAMS What IDIQ, the a and are is of you to should IDIQ the be also Or Switchblade it $XXX vehicle? to we million could think LMAMS

Great question, Louie.

bit to try a these. and little some of me clarify Let elaborate

So $XXX similar sole the essentially ] is LMAMS. the under received terminology million we [ contract, the contracts IDIQ previous called to source that IDIQ

this is that the really intended contracted of Army acronym or category and LUS needs the used contract. So umbrella be opportunities and Lethal it Loitering our category before. Systems different Lethal now contract replaces the of U.S. Unmanned such or multiple that can be to customers LMAMS Systems calls to Unmanned use The is so that and we procured under this

examples Security Loitering packages called So Ukraine those both Army's -- are XXX U.S. and AI as Ukraine of the is the for XXX munitions, need U.S. Switchblade could fulfilled own a for through also need United Assistance to U.S. initiatives. be this

So is opportunities can also request another this]. The be give one. [ Ukraine if them, under U.S. are and procured the them wants to initiative Replicator those potential

For initiatives the the U.S. through needs specifically, U.S. be the Replicator Army Army. could procured this contract also under

separate outside and other U.S. Marine also have needs, this Air orders with under contracts Force can they additional However, place and services of U.S. us Corps if IDIQ.

] So what a us buy of the need just limit U.S. a stuff, if us doesn't [ is IDIQ to vehicle you but lot it that. the for Army, to gives

to grown we the our Munitions. portfolio engaged opportunities we're and We And can orders so actually Loitering the pipeline secure continues have in expand sizable fact -- opportunities the robust the that for besides to has has and demand that keeps Munition far. forward so far for continue very, avenues really couple a request we besides first with grown going our that orders multiple Loitering of It's other the book actually quarters and that our very that expanding.

for successfully negotiate you you that the margins to margins, pricing so better than are contract new And Kevin, higher able say did the just to Switchblade clarify, the were terms? traditional

et Well, based grows, could our business the you pace, continues see at the volume improvement speaking will are adjusted of either time. margins. gross should [ in this fluctuations Loitering our ], contracts, of looking that lumpiness expect munitions at the we because coming But kind of And improve high both had the you're think well size But a basically, we volumes gross and and you'll new margin upon last I'll year's margins, profile I basis, the or year's these overall speak volume, of EBITDA a if grow the EBITDA because as additional Louie, say this margin of and And adjusted cetera, margins. in. primarily margins as was do that on and business we very profitability over contracts of quarterly the and to improve that.

us deliver call to payment addition In that, takes customers our my more that contracting much remarks process mentioned and the also favorable. is and prefer terms on needs Because I have the urgent the on for to quickly they very time.

just us the so, lot they the received process the sure We product. payments advance. have do to things at payments actually revenue end a wanted than plan to, whole government on progress to in when of pays And rather we based and times, make that the of recognizes and that

[indiscernible] [ [ the We saw more with recognition revenue ]. ]

That's right.

based we the be to to speedy $XXX deliver So million on in going able payments and doing actually on. that's our we I that we're customers ability are delivery to that get they to payments, as them favorable for them this and believe turnaround value recognize customers And the recognize a very obviously, to for revenue, to for and recognize we allowed that, invoice the progress us us our quickly. contract. and things term us that that progress shift

for be you're that dynamic, capital the those positive what is payments, should So saying? those working progress

receivables. all increased the not But quarters, unbilled volumes next going to several should overnight. It's in we happen over start even with Exactly. the seeing reduction the

with for next of moment Pete And line that Skibitski from the our question. One come Global. will Alembic

A couple of program questions.

of opposed Is as the correct on legacy further understand ask LUS whole LASSO, will to have variants Switchblade and be Army the XXX to XXX contract LUS basically to it LASSO the your largely maybe area. that requirements Just different? versus updated you of so newer way the to would it? you'll a color that coming little has delivered Ukraine Or about bit and variants kind out think Switchblade LASSO, right is under

first that fulfill uses [ stands Pete. Lethal, requirement needs believe [ I they're ordinance. Slide a army have terminology have they their Loitering Munitions is the actually So what Aerial, cluster have LASSO. term, and have would for ], to [indiscernible] publicly is called needs. ] stands that X they the which I LUS say U.S. for that's is the them it What immediate urgent what to using. that, and Stalking terminology to some Strike specific LUS if announced Today, LASSO, for, Long

of intention additional long-term type their maybe up acquiring variants next it beyond that or cycle. goes Munitions year XX-plus even and is a XXX LASSO so And just of Loitering or two, goes XXX the it to Switchblade year both

And already purchases variants [indiscernible] be program the multiple Switchblades it plus of so U.S. and initial today, that over called goes decade of that's LASSO, the time. ] Long [ term, decided terminology will multiyear to to a of Army they have for record Switchblade for on a the LUS. procure according under for

they next us So that lot so initial ceiling B, at and purchases a order A, selected more the they've in the with is purchase blanket Army an years. billion, Switchblades put to the the requirement need good position. already a have news and for recognizes we're U.S. c, in the $X several place us allows them close over procure it a IDIQ to great for

so our the of in relations satisfaction a us our with that all with and of indicator product Army, their strength the positive the battlefield. U.S. very And really performance is to

out coming saying, some -- first view, is refresh for Ukraine, to it think, UAS. And the I'm I me term, trying just of hear FPV, for of question a small that X, do X. they newer seems like UAS your this person X, UAS bigger out, just I'm this but have you Second challenge person a talk find DIU and ] also [ about has about And first UAVs talk they current Blue view, saw capability? I small

So wonder to FPB if terms I and can of kind or other with a opportunities? what of expect some maybe to color DIU some just give possess there there the you if ]. us of addition requirement that new play you you Is -- guys [ in in guys

Sure, Pete.

cetera. all. it munition for FPV of a a ], are are do. terms process quadcopter, capability to existed can't And whether sets mission unarmed or and view a very, it's different and designed remain flying a the but Loitering essentially category of So do not sophisticated, with a more likely different more a is it's really or capable first type manually complicated et a of or that and while. [ it's either much in cetera, an drone of kind FPV, drone different is nowadays, used. Switchblade is for taking is essentially long that a some sophisticated armed drone a Ukraine most It And to manual although a lots it for of it Munition. essentially an or considered FPV it of missions or capability, it's what warhead that our of very challenges is address a then is that, target. lots An armed exposures Loitering run, armed Switchblade multi-rotor attaching is can of missions other What that in Switchblade capability the it's addresses and of person can is has Switchblade not, time much set drone there that whole most drone, system armed or will than more the FPV bunch that very

Switchblade so higher into and endurance, Munitions Loitering range, its And important is can go detail of than success. And much precision. of thing is mission as I drones. lots on The in you see most of and that Loitering the terms there's but effectiveness much, -- such what capability FPV things

is a And not running that Switchblade missions for ] incredibly much is is the robust that on although we're the blame we an initially, that intentionally term. is market it. that larger so eye and category [ to keeping But decided a, long

Yes.

FPV like saying. Sounds -- type modified or type what you're -- I [indiscernible] almost, see [indiscernible]

Yes. Taking up complexity it bomb drone really returns them of an strapping an capability. essentially low that level to and and or into drone a an mission unarmed explosive is FPV a

from come Andre the will that of with BTIG. And question. line Madrid next our for moment One

back Kind of in for go talk Switchblade. wanted the particular, about FMS to and pipeline,

appreciated. the Wahid, know call, we around right could earnings now acquisition. uncertain, I Or to you still grown? be last it the would that stages trend Again, half but And is dozen the how it roughly various on same? forward? Has roughly moving this expect there timing think a are color I mentioned figure of countries any is in

Sure, Andre.

true going of and is we're X-plus to very The to internationally. prove engaged it engage are ] countries. risk to we XX that XX countries that [ with So different close countries is with actually countries, over

were government with most actually they from X-plus each year ask, ] actually in with two, actually us And that outcome, the they difficult different active predict in authorization receive that cases. process requirement are are countries customers it approval gives a approval they those announced. So in in the right exact getting that of of is about list strong Switchblade. a confidence half want the program to will one. Number to a and X-year general all moving like meaning Lithuania about has they ]. months, plus recent Because acquire as in to announced those gives was process this pipeline and allows keeps energy is become start idea. begin publicly of eventually, came was have invest XX they these announced that Switchblade approval [ to an It was customers others engage and the has government the and in other the a which few process, that's from a and publicly us a roughly with. is a them, we number We've positive is there just you can The or word one growing. had give the those Australia, allies and if to for publicly Well, France the growing. in example, a number [ each really forward positive timing dozen ally, that U.S. of actually progressing these very countries such keeps huge levels Switchblade a actually direction. What's a get they engage engaged and when many it's manner, shrinking, for a and contracts are do we not engaging process very, very which process, we're of U.S. And customer by positively positive as announced. they to Lithuania when a long that's And very the until engage Taiwan

created equipped potentially forward with so. if we've Loitering the the set large, a ship many will not us, [indiscernible] that years that why be to actual A, in of of two, look or got the very moving the those shift general, next category That's growing they're the fiscal Munitions here whole basically all in if in well year that's to and countries; momentum contracted over over entire have continue very are year operations convert we've military will Munitions category a we're So new believe year be we very next very, Loitering is beyond doctrine b, that this to saying going because that several all next number We very large of in you for going right those, mix optimistic marketplace have direction; we C, our franchise warfare. the to favorable. I'm [ that robust awards or of ] a just XXXX. in a And or

by IDIQ that the expectation this facilitate something U.S. previously that? And times foreign I vehicle IDIQ would do to multiple even but guess sell? this not on to countries. following that this could only over said And you possibly Could it Ukraine, that highlighted be further. to international that other was used Army, still is know I and had also up that this was the sales for provided help

have always we've the IDIQ achieve of the even contract be customer much the the reasons this contracts, not we've And time you FMS it's you also this able to or allow because the this, go of general, as all one this army a frame and a the types any like the accommodate only forward. to well. to foreign limits an they with AeroVironment of performed glad look placed purchase, a an increase to be but a at the Absolutely, military yes, ] that sales reasons reason, many limit, funded history Andre. acquisition limit. could historically, really [ customers easier under umbrella foreign we way either the be the U.S. was increase increase sole-source that Army under or Once up as allows military And for I'm international program the contract. of Switchblade whether contract brought or placed contract, one you ceiling in of it or if in ceiling these U.S. sales program, procured

is exciting that the actually improve very yes. answer It short process it speed customers, accommodate well. it's could can international So the help of as definitely and and

our One Baird. do moment And we question Arment have with for a Peter next question. follow-up from

the like Wahid, or than going going be partners given least contract. up kind basically leverage bumping of kind you're different sounds these can that at of close. It sooner against capacity all potentially use you're to your or expect IDIQ to be

additional an first So much place capacity you how make my you expect put question. to that? support of And a when do That's in move? to do to need

my we're of facilities our ability we itself. you currently, while, of we're Switchblades I the asked this about specific tweaking the build made that UAS to a in for add Peter. on next because this sitting the easily So I always deliver large up and to We've billion other or some glad worth are we're a been have the current scaling year planning remarks to product factories that fact to the that capacity want close $X.X question, the not of non-lethal modify and on And features one site selecting factory and still I'm we've capacity XXXX, great in fiscal actively or accommodate can the for to on next have, they're comment in of also production of Loitering meaning still But multiple in already and the curve our factories different the ahead very Switchblade. And production we revenue cycle. that alone. fundamental demand states for mentioned been our on as fiscal general, call, flexible, that engaged of Munitions. I we

a of got design design factories. our flexibility when we've process and our these part planning we lot things general, in of as So we

deliver biggest with we're as be I and aware $X.X billion say are we per DoD's proven we're b, we're additional would only biggest, reliability at in munitions those it's in existing fact, affordable, on call monumental, already looking the this of roughly very product what revenue, all [ requirements worth is ways. our sitting can so market the at around ] sort our In we're of line. an because percentage which still, much and going levels a to competitive one to not performance capacity who that a I expansions capital advantages X% of out of percentage Loitering the battle of And ones year U.S. spend basis. do very are going within or multiple c, along, for CapEx be we annual not

I'd the [indiscernible] improvement terms [indiscernible]. just in say

Just And that trying get just clarification for not order was funded clarification, cleared, is to the Taiwan FMS your there. yet? that backlog in some

Peter. correct, is That

has the for to ]. mentioned, funded Army's for Ukraine been by Ukraine their now is [indiscernible] that requirement for The reflected added and in for orders, our order [ at we additional Switchblade other U.S. the That's million [ that announced from replicator the own additional the $XXX many the example, I for, award DoD or booked LUS as U.S. not the Taiwan of OPS So our for U.S. ] that's Army both only thing or the was end backlog. needs. publicly QX or backlog demand

potential them. make of those, fiscal the backlog its year. order book those which those eventually, most we're we expect of to to throughout not orders working of they're And into all if All way an going

demands have So for we're we of yet. just and but as in that these our I the our at not we've reflected additional beginning remains not about, backlog booking robust, Switchblade -- said, quite it's talked pipeline,

now I questions to back conference remarks. the would queue I'm for Jonah showing no further turn in to this at like closing time. the

Thank conference you, and and today's interest once for you thank joining call in AeroVironment. again for your

look found to As of have website. news can hope filings evening and SEC relevant forward our you and results. a of under reminder, following call, the again quarter's section speaking you version be a good next this We archived Investors an with

This concludes call. today's conference

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