AeroVironment (AVAV) 4 Dec 242025 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the AeroVironment Fiscal 2025 Second 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 Second XXXX Welcome Teeter-Balin, of Vice Investor Jonah is This President Relations. Corporate and Development

this risks Securities and differ expectations. contained and the is available with in Litigation of uncertainties Before information other and from Act results XX-K of in Factors filings within note SEC, AeroVironment to SEC, company's Risk please statements such risks or Reform that www.avinc.com meaning call Forward-Looking our particular, in involve on Further these could at These from the on actual many are the Private we the Relations the our statements Investor uncertainties portions contains information website materially the filings. that the Copies of from XXXX. Statements team. on forward-looking and begin, presented certain cause

or presentation Presentations. also posted Events of we and a is only result company any a filed as The contains of to December XXXX. to X, obligation afternoon, future our the presentation and no undertakes statements, This information accurate our information, events new section The whether as forward-looking conference this Investors slide earnings call time-sensitive of of release a under today, content that otherwise. website update with

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

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

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

$XXX million, are for presentation, first, quarter second quarter representing earnings to record which are Slide a #X the key second Our revenue included follows: as rose new messages, on company. of our

for Munition of million, the Loitering our growth revenues record to a with drive increase. $XX company Second, XX% year-over-year second Systems quarter segment continues nearly

and robust Third, a XX% execution, awards, year and range, million. is the visibility now funded guidance guidance strong And to adjusted of EPS key to continues fiscal given reaffirm fourth, $XXX pipeline for contract our we and EBITDA our backlog healthy grow XXXX. revenue, non-GAAP at midpoint

quarter stakeholders. our continue Our coupled to all with in key quarter, for creating strong results, other achievements key the clearly positions value second us

a $X.X were For record example, large ceiling. X we contract billion Switchblade in awarded representing awards, IDIQ sole-source

this awards funded the amounts visibility fiscal under While Switchblade expected were long-term and further. improved has even these for for year, demand the

and market-leading further unmatched and at Long-Range UAS next our payload performing is for PXXX. In offers well customers' XX Puma valued The endurance, $X the in addition, the strengthens Army's This is capacity, PXXX missions. uncrewed our solution gap launched JUMP fills decade. U.S. competition, between flexibility which adaptability Reconnaissance over This most billion the approximately demanding we new solution, our our platforms. latest ISR the Group and portfolio systems X

achieve focus the we We're With last We needs. on solutions. throughput production shared on additional we and become multiple expanding We quarter. customers' production also solution. growing opportunities of industry-leading global remain and backlog, to an another international this the and pipeline to and our product Raven continue to Puma meet to believe increasing PXXX capacity receiving domestic our similar goals our track for interest franchise will

agility. mission-critical in a This warfare. in achieving solutions a major diversified delivering even step us took defense state speed franchises several technology technology but we become and our last, towards more not stronger UAS, our least, and announced when will defense innovative future BlueHalo, operating agreement provider, to and And we to cyber acquire enable leader electronic counter highly space, acquisition with an enhanced key

our will in the UAS, autonomy loitering unmanned systems, us communication, cyber and a space approximately forma munitions, suite. counter portfolio electronic billion company the enabled aerial On pro AI to We industry-leading combined security, annual software combined is positions revenue. basis, with in best-in-class all expected provide by $X.X believe warfare and deliver

combined shareholders. work will this and closing even We better half our diligently AV XXXX, outcomes continue other strengths leverage customary to approvals and as and employees to transaction our calendar towards to the conditions. it confident and expect that in shareholder regulatory year of and first business, completing a we deliver for customers, close We're subject

starting each results of I'd from segments, like Munition now that, Systems, business our Loitering X to with With discuss LMS. or

LMS stated quarter same quarter by Revenues about revenue the once increased our as from more million, expected. previously, driver period As again the a Revenue year. Xx totaled fiscal second than last LMS growth strongest $XX we new record. was for

very in are global globally. Our performing become the field standard well Switchblade munitions products and for loitering has the

to ability incredible proposition rates. contested heavily environments continue success an in in with XXX value XXX operate high very Our high-value and strike to our customers. very cost-effective Switchblades customers Switchblade's presenting manner, a unmatched for targets value a

to Additionally, of our enable quickly. recent by customers greater procure These both multiple most products as XXX demand to Switchblade new for U.S. our our DoD awards. quantities contracts and grow, XXX continues IDIQ evidenced more

task already sole value and $XXX U.S. we've unmanned lethal the source a of received U.S. initial requirement this X-year under with IDIQ ceiling systems. Army nearly for a $X contract award order million Army's an for billion, directed The announced

U.S. million. task the separate to contract sole-source we also modification beneficial process and Under $XX million IDIQ, valued of at XXX which order that We XXX. will U.S. and and for received ceiling which new progress terms improve should also cash a for Switchblade orders from These capital additional facilitate payments, faster Both international flow an key opportunities. roughly allow awards and Army, XXX this received nearly procurement IDIQ for Switchblade XXX contain the increased significantly domestic a contract usage. our working Army existing a have by $XXX

product to line addition our international demand. In demand to more see orders, increasing continues domestic Switchblade and

As Sweden. Greece and million $XX purchase I Switchblades the have X Lithuania, quantities announced received future. also we the award publicly FMS to Taiwan just from mentioned, orders Moreover, significant part Romania their of in intention additional allies: of near and

have a Looking to more ahead, other AV family countries offerings of system planning comprehensive create their add our set. in to to pipeline even Switchblades we solution

Additionally, we're pleased OPFL. delivered Switchblades first tranche to of U.S. under our to Court program, Fires share Light Organic that Marine we Precision or the the

the task Switchblade coming contract the additional umbrella expect We quarters. in under orders existing

year. demand, of on of end scaling In this product revenue support all more in Switchblade fiscal to annual the support remain further we million manufacturing than by $XXX focused growing this

location and we will additional loitering our new the industry. record have XXXX. expand high meantime, In in Switchblade remains beyond track fiscal munitions delivering manufacturing volume quality, unmatched an We where high reliability the of also high and year selected AV's

Finally, to We we to date. announce at offerings Switchblade and continue in details invest hope on new these a to current new variants further products. upgrades future

summary, fiscal confident trajectory continued XXXX. In anticipate of year well momentum and goes growth very about we're business, beyond the that our LMS we

on our $XX million, segment. for the quarter Systems solid Now quarter Uncrewed Revenue reflecting of second to another performance. was nearly

our strengthened due showcased Systems JUMP and strong XX and segment the platforms. at said, gold our the Our we the solution Uncrewed uncrewed we profitability portfolio Washington, largely product, latest UAS the for to we global the in company, with a standard for remains Conference another Annual our be our Group company. and track with franchise October. record, solutions this D.C. PXXX, to which driver X revenue create Puma expect AUSA for in Uncrewed That early in Systems Consistent

receive proposal for recently submitted PXXX submission part LRR, is update months. an or in program, Reconnaissance the coming hope our to of we the The Army's our Long-Range on U.S. and

customers, ensure demonstrates continued We for Marine to strong Corps, and intelligent PXXX coming additional U.S. the growth. multiple be and U.S. autonomous product the superiority customers. U.S. global segment's that program to also demand record, Navy, contributor beyond platforms U.S. anticipate platform provide we with from a to international this significant innovative, The this our for interest operational future Army's this expect our SOCOM commitment

than have to billion In on additional pipeline momentum X system. JUMP $X.X addition, we're hope now and our continued at We sales share soon. wins seeing of in a expected more XX least details

potentially Army's office with engaged Additionally, to tranches. upcoming we for the remain U.S. compete FTUAS program

on our demand for platforms, XXXX UXS remain anticipate our solutions healthy international to PXXX now the domestic XX in feedback we JUMP favorable Given and and Puma, beyond.

solid Moving though and meet that its now make to opportunities to the segment. with capabilities. autonomous development progress novel capabilities our especially platforms to goal of Works MacCready on continues evolving MacCready Works needs through the and key solutions our provide customers'

to reliable variant this example, program HAPS the with the an we Sunglider demonstrated which altitudes defense while of fly our flight providing test past at high surveillance. As and our ], continued [ ability persistent quarter,

Radar, Aperture capabilities. this or advanced payload, flight program, test part a of flew and we Synthetic state-of-the-art demonstrated surveillance SAR As

to segment a forward MacCready this progress, innovative DoD current flight and with our quarters. and solution HAPS the the awarded $X we were overall and follow-on remain exciting to unique future game-changing to role continues play efforts for AV's business U.S. significant recently our Additionally, customers' look We another contract HAPS platform of test future from another and new in We continue capability our convinced in missions. program. more that the development announcements Works is defense to continuing are offerings. sharing million

year beyond. the strong remainder confidence contract and execution, key in awards and pipeline summary, our robust In gives fiscal us of XXXX

has date, increased midpoint the performance order still to visibility adjusted guidance solid some to would a XX% XXXX half review about continuing revenue Our backlog third with EPS for our represent revenue, and year risks revenue to of administrations. our turn quarter especially in like change are orders now With see second XX% financials. fiscal range, a quarter environment McDonnell given over and the I our resolution of second now revenues. that, reaffirming the Kevin? recent our to expect and EBITDA guidance we Kevin Therefore, non-GAAP to of but we of healthy timing, call and

refer the revenue release our Today, earnings strong adjusted EBITDA during our on of occasionally you, reviewing summary, highlights which Wahid. performance, posted Thank another will second I presentation will press be and quarter. both we In our available I and website. to quarter

We saw remains funded grow decline, after our and backlog our strong outlook of quarters also another year. fiscal several for

future of which BlueHalo, during is Given any the to XXXX. acquisition, impact calendar exclude of to expected references half the first the performance pending close BlueHalo

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

largest million. the in $XX but million accounting $XX.X UGV of the demand UXS, which revenue last of of saw Ukraine in of our small from and decrease quarter during was the down remained UAS combination during medium XX% a which revenue businesses. meaningful quarter, segment UAS, year's UXS Systems, by strong, XX% total quarter. of the Puma had [ is we and Our revenue, Tomahawk JUMP Uncrewed driven and or UXS primarily UTV ], products, also the from million $XXX.X for XX contributions is

U.S. SoftBank MacCready of for $XX.X compared and Stratospheric QX, primarily to in as Our last The recorded undefended compared Loitering LMS, a ] the HAPS of XX% $XX.X revenue second Works driven [ [ $XX.X $XX.X increase of last $XX segment, by gross ] the revenue Munition came an quarter segment our revenue [ contract year's year, in LMS at increase or increase Testing. to million million, second to quarter. Flight and Systems QX from actions definitized approximately margin. million, Defense or in ] million for which during fiscal resulted XXX% highest UCAS from Revenue of the were Department million both as

service Slide and a of breakdown In there between the product also is revenue. X earnings presentation,

product Specifically, with year, during accounted revenues, to XX% in product our and the due the second revenue UAS medium corresponding both of quarter, products. UAS, is primarily the LMS small strong of from line total quarter for revenue which previous

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

the In consolidated gross intangible of the Moving gross at due while in margins, gross product to margins adjusted was which XX%, which and margin gross lower GAAP finished margins. expense. margins, reconciles the the trend prior gross amortization service presentation quarter last the shows the mix than second XX excludes Slide period. margin to earnings higher of second adjusted used the GAAP Slide year quarter, X to UXS

Now margins. turning to gross adjusted

mix the quarter Second than same gross the lower previously. last XX% is to which sales margins period due in the for adjusted year XX%, described were change as

the the quarter second of second end fiscal second gross strong half be year second expect at should We higher year driven to quarter and the of XX% for last gross UXS XX% XX% year. we margins higher to by for of the the ending margins. which to quarter the product and product adjusted -- in revenue of the fourth in sales, margins XX% Ukraine for half exit quarter were Again, the XX% the range. XX%. contributed the year, We had versus last between full second Adjusted adjusted

do to the we We in increase. decline coming expect LMS gross quarters adjusted of expect product the continue margin to from product revenues contribution as

In was at margins, second same the quarter XX%, of terms line of adjusted last gross year. the service with in quarter

In terms adjusted shows $XX.X year's down Slide was XX adjusted $XX.X million. QX the EBITDA. GAAP for million, net of from to Adjusted of EBITDA, EBITDA QX reconciliation last income of

adjusted running are revenue. half resulting year's revenue first reminder and versus is our that year. Year-over-year, lower was Just last of in a slightly, because but EBITDA first SG&A expense half Ukraine R&D last up higher, strong very

SG&A expenses line into shortly. are and in detail year, guidance and However, go these with R&D I'll the more higher for

adjusted QX, million to the higher incur income, expect adjusted slightly likely and X the the be down GAAP acquisition-related timing the QX we're EBITDA of expenses expenses We'll next QX quarters. revenue, expenses of QX. fiscal we is for but into net impact year providing to first any these BlueHalo in difficulty guidance. fiscal amount transaction only that than We to the year. of transaction EBITDA incurred Because remainder related and Also which for non-GAAP and of $X.X predicting continue from EPS of note of significantly the

the and amortization expected second of or million the $XX or intangible compared XX% XX% was for the increase expense, is in in SG&A of quarter expenses partially to excluding increase revenue result and million The acquisition of $XX SG&A year. revenue prior with expense an help expense, along increase by an and employee-related primarily to headcount support driven in due increase to expansion costs marketing average proposal operations. sales of growth our an and activity, in in our bid

the revenue of SG&A acquisition-related as to end expect in expenses as a quarters to range. We XX% XX% decline we next and in the percentage before year intangibles X the

was to driven million R&D spend revenue prior compared development R&D year. expense several the or in million key XX% of in XX% the was second or projects. $XX quarter revenue the The by of $XX in quarter

controller the our Group AUSA, XX II at of of the the into UXS Specifically, introduced several meritization UAS, JUMP integration the our and PXXX of products. Tomahawk the

development continued of we addition, In several Switchblade variants.

point QX, high percentage and dollars a in for sequential decreases reached dollars expect year of investment R&D percentage Our in we in in the and QX and QX.

revenue to R&D of range to fiscal the in We expect be of XX% XXXX. XX% year for

million be $X.X period turning earnings. Now versus second a the year. net in in decrease several These and net increase investment the the of a including were million and quarter, million a decrease $X.X million in factors, same of interest GAAP losses, recorded decrease a offset $X.X income a investments income decrease million $XX.X of increase $X.X a $X.X million income to by and decrease in net deal million last in $XX.X $X.X expense. gross million to a costs, $X.X for million other R&D equity partially The in generated million can in increase in in our attributed increase In integration $X.X expenses, a SG&A $X.X million activities, in company taxes namely margins.

fiscal The EPS. earnings for company XXXX share $X.XX of fiscal of non-GAAP diluted quarter second for Slide diluted second GAAP per per share of -- versus the posted or XX adjusted XXXX. diluted $X.XX share reconciliation a of and shows adjusted quarter the

first compared first our second quarter balance sheet. $XX.X the elevated, million fiscal $XX but of and of amounted to quarter, declined the investments million be the second the the million end Unbilled close $XXX from segment. to cash of the at during receivables quarter to 'XX. largely to the business LMS Turning At total to continued our quarter, attributable

impacting to Although We, our contracts start working any of our improvement terms in on fiscal have new the payment year. anticipate favorably these beginning we the quarter. on quarter, didn't therefore new LMS in expect the for receivables remainder third an terms unbilled capital second impact the

credit a like loan X backlog of during with $XXX revolving facility metrics. balance completed term million million which that the $XX revolver. banks to with conclude paying the We and quarter, I'd remaining our highlights some down funding included on also

domestic Our sales the million, end $XXX.X or funded at the quarter award. finished backlog XXXX first recent an fiscal of of driven at and military second the quarter $XX.X fiscal our million compared of to of LMS increase by 'XX, foreign XX%

currently have of billion backlog. unfunded we In addition, $X.X

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

Thanks, Kevin.

quarter we're validates believe continues deliver of by Switchblade to forward our Global the well increasing We customers' positioned benefit international solutions We're and products needs. solutions quality new our priorities we're and AI-enabled and performance XX the importance autonomous, DoD's for JUMP our look demand, to positioned in innovative and and second from to uncrewed budget demand to solutions. Our to our to volume the working products and customers. administration. U.S. with the for well especially evolving encouraged support also increase rise,

Finally, we defense our us most position best-in-class believe BlueHalo objectives the leader next-generation will focused as on addition priorities. the technology global critical of and mission customers'

countries. and hosted concluded Technical just event and also from our The customers primary needs. market-leading our TIM, on XX is Meeting, our to or where of objective hear TIM educate we our their We feedback Interchange solutions participants

of share resources These our in to performance with our to coupled position We cost-effective fair more especially want experience, new combat, There globe. and the a a strong is partners war in wave factors, strategy of and see this systems Ukraine, UAS with with the shift and of expanding occurring our fundamental Customers requiring opportunity. solutions record munitions. across deliver track innovative loitering agility. capture now significantly procurements sustainable and us

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

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

Second, continues our driver the for Loitering the Systems Munition key be growth company. segment to

fourth, a adjusted fiscal Third, and reaffirmed and healthy funded year. for And anticipate EPS we our million. company guidance the revenue, EBITDA will -- records is guidance this backlog new for set fiscal year we $XXX non-GAAP XXXX

and support Before thank growth and that dedication hard standards questions, talented adoption interest we faith can take support their work shareholders And of here missions. allies in team growth continued to take questions. for your I to truly like at I now products our Jonah time. to I and would their like I the also meet critical and their thank and an we to It are continued and incredibly honor support enabling our now high our important seeing. like for our company would thank our finally, strategy. their for our is will this And would customers that, AV with at and Kevin, country their

first Peter comes [Operator question Instructions] Arment with Our from Baird.

is, I quarter Wahid, dig uncrewed category? of the the in that think, bit quarters. can think, we on that you This lowest the last, in X little had a kind I revenue like

maybe you're PXXX from because from saw really So going at can a expecting seeing be not what for -- And this revenues environment demand describe -- year, product the to maybe you any guess we're it's we I what seems great but it of AUSA. there? just like kind fiscal

And what you're in can you what that do Just seeing? you describe you're positioned think category? about how

UXS that revenue or that Uncrewed Thanks, profitability X areas. a from the our UXS of big, levels business historical we my segment and proposition the driver will We last has demand our as be strongest Absolutely, for to and away belief several the Peter. being revenue for and has Systems because a the value believe transitioned year. UXS as it's happened as whole. key been the continue that segment reason opportunities tremendous long-term growth in high big and Ukraine not The

We are expecting that.

from successfully We to successfully that and delivering strategy. on been working that, we have are diversify

tremendous AE well Secondly, amount as JUMP there's for I existing would demand both our XX systems, LE, say both as Puma that system. of our Puma and

of $X.X worth pipeline over of of billion and XX opportunities for have both that solid international. we real most domestic systems. And example, our For is JUMP

we third, nonlethal development our one, mix wave few with UXS So introduction X pipeline. and a multiple systems, that be it's And the years the over demand for next we fueled customers to in the our very especially is in the other have PXXX geographies. believe products next to a that good dramatically of of X going

a program is this we believe we So right X and Group that of to to have similar growth billion what ], is and new now establish the which Pumas fuel [ our program, to another similar UAS record, a sort another call product the franchise that position category. competition $X Ravens going of with wave LRR I

a for confident and because the long to lumpy I'm able business's going lots quarter-by-quarter nature the overall, to looking That's are variable to for of quite strong, we And -- in about the term, growth. very and that and continue So basis. be quarterly grow. be on It's though lots of looks ability to business. opportunities of

the on, to there. can Could about appreciate was on Replicator protest stand ship I to you my IDIQ the that you any against Okay. color And you follow-up. And And put where bit little if the contract? make that started just you've a comments deliveries? Taiwan? I talk as guess,

Sure.

military an poster pleased of and had deliver expectations refer U.S. related are being of the Replicator, the able promises the entire to on to company we I We're to that has what that that a Pentagon So as incredibly successful to initiative. report and child and on we're program.

of as We we have continue significant go we'll more the and specifically ship XXXs customer, shipped Switchblade product, to a already portion that to forward.

Switchblade and general. the expect come the there's general, success in our backlog a well program program on the and future that we for quite as in So that growing business part to as been as has us, Replicator for of good orders more of

related we meet to of although December to can time, protest, Department government the products needs. to They decision our the for And waiting able under proceed still decide. Army U.S. ship mid-December the to that -- to of Justice. authorization are during so we -- the us late be given until Secondly, customers' the to have has

our We believe position strong. is that

delivering compliant, customer. under we think and for and to have product IDIQ as well competent as very continue a expect our Replicator award, we the the bid I

comes next Blair. Louie question from Our DiPalma William with

you Jonah, less progress for And growth so been military Kevin Switchblade and relates in as foreign to the to on we're sales. discussed just Kinesis front making the the making ecosystem? afternoon. the robust Switchblade wondering Have Wahid, adding it of portfolio for terms and You software for Switchblade. and very the you're investments how Replicator good

Absolutely, Louie.

from So our customers' is our the our it the integrate driver process to has outcomes control to our integrate the and to the ecosystem been got. major stated It ground software beginning of primarily plan common The them priority. of first actually for station the by priority to missions to which Kinesis is and simplify continue product value achieve operating of with the customers' portfolio. they've driven rest list a

all got product today the there's to that field to to the in products with controllers happen customer with the Switchblades we've customers Our really process with the deliver that need deployed. because existing a training has

integrate progress, are We eventually and well. it Switchblade integration the We're plans with as making phase. and have testing to we in

are first. soon, And announce this will yet. of they primarily successfully to our product, and prioritizing we driven by point we're with now that order customers' but their to And that be see activity not ranked at we that's shipping requirements that want what able

third-party going we're other with portfolio, the many product They with continue grow to their pleased but not their continue controller we're and only But team. to and products our integrate that to overall, wins, very controllers, and and make really business there. are out their significant Tomahawk

pleased progress making very with that so far. we're we're So on the

Kinesis Great. product and operating system lines? tie And to and well the along the those Switchblade JUMP common product together able many will the those you in be for of provide and terms as BlueHalo products, third-party feel with integrating different lines, with that do lines a XX Kinesis Puma

theater to we're portfolio battlefield. provide absolutely, holistic plans of entire assets picture it's continue had we've of the to the with part eventually a of do solution that. third-party in Louie, potentially in That are from our that that X, operating to is customer day platforms any the common set, including our and our other or and objective going So

and excited I'm the We're we're integrating obviously from a we position approval and wait regulatory comment process, to to able come has approval. the not although follow in our our about possibilities and with approvals of rules solutions because SEC departments, department, shareholder on a with that government also very, the the very in BlueHalo, from the through must on to regulatory -- that be the various

and However, that that our the in to is expecting we've used us. general, I to future. widely -- set with that a able be in happy continue is needs far, in they're be it's this to the these and has solution we do and could are very going strategy players because way integration customers say actually so provide to fortunate what to our operability fundamental position we're delivered government, is the for the our and that successfully our with system because customer our that like We're from to in

Great. And one final one.

did your future for Systems overall You for expectations Ukraine discussions years are the and segment. we Munition and potential for how funding the discussed just general, the Loitering Ukraine business to year contributions segment? And And Ukraine Uncrewed from ceasefire pressure given were there? what wondering for all in the this of impact a

Yes.

to the a because we regardless like become positive of X they safer, continue doesn't it's safer for not and prospects Ukraine is growth it systems, our was it it's than for before, a; what for Louie, in of Ukraine, of ask specific of asked the any world to continuing The any the very more. b, regardless great our part glad I'm conflict and any So has you better, world. look tremendous about needs existing very, question. feel question company

that secondary treachery a Even believe of capabilities [ of or amount going there's ] a region. if there's buildup in we be avoid to potential conflicts to another significant ceasefire, that

in to Lastly, least is and years. the that would multifaceted, our demand. as for integral where is continue -- like the and but defense allies a a shift much piece diversified. for that that Switchblade becoming incredibly strategy we X source fueled of at particular world going PXXXs Ravens to others, for XX our and not become global. It and growth Pumas It say our portfolio unmanned much, essentially customer the and DoD. well defense X The it's around we is are U.S. I small in see the is it's next, loitering strategy X bigger I X of munitions of or It systems see Munitions by every the have is such as as Loitering

be for going a Ukraine. think beyond the come So that's years us growth very strong, to and for I to besides healthy

everyone. Thanks,

next Greg Our Jefferies. from comes Konrad with question

start to on Switchblade. just international Maybe

customers then think as out and Taiwan quantities. do just those kind in pipeline. international called just you us the talked And task think XX terms additional how stand? of order just think you've remind were about $XX assuming with awards you also you I'm million initial converting part Can time? the I the of did maybe get, the and that of in you I where called you out rest building past, Greece. over potential that those allies about also of

Sure.

contract, On their to Switchblade. ] Sweden. Link Greece significant X Taiwan of the on the orders also have has that as C purchase of part part those and quantities [ Lithuania, call under So IDIQ and initial intention that or publicly for we announced the there of was of mentioned task of orders Greg, IDIQs $XX contract of the I that, Romania million top awards as

XXX, of growing have orders that planning we're every are both to XXX so be procure to are to said the we countries that. and just these the that and going Switchblade, received. initial the on continue remarks, is, progress again, I on And quarter. is And as -- make acquire we that list And

outlook XXX, And the incredibly growth for the the so is for beyond that combined for years. year but other and well this we only think and year, next not this Switchblade for variants several XXX positive, bright

reason, production we to For invest are in that increasing same capacity. our continuing

fiscal bringing we planning stated that are beyond calls, of site billion to on this run up already of worth year another end the by previous volume. grow to I actually And fiscal production this So at and fiscal the continue year, $X.X capacity business to rate be 'XX. intend we about on and as

expectations and that not large international our a surprise X are so next long a me of we franchise fantastic Switchblade, I the or solid. to continue term. are that's And over place believe been to to placed plans, us would set going to be have years, our progress with X it countries has very our that going though orders for and

is of new I say, invest category allows to continue Greg, to lastly, so Switchblade, portfolio. in this continue I for us new of And provider the great. entire to industry. the record we've by would to leading there. expand mean, track massive was the variants the, else. And start we're everyone that massive, far, the and performance And compared defense our a And we player got head

All very that my to good of business. of very, bodes a terms outcome that view growth in in of

for How I And administration. to guidance? QX, the that just how XX% X in to that materializing? think had order the you in ones. the the risk of remark mean, visibility then And you captured much but that XX% current HX of do materialize? risk talked a in maybe mean, is in front? made change you And due does said that's year. clarify about about revenues prepared how I you in

Sure.

first our new achieve Greg, new record plans setting So We're we of able teams have with I'm quarterly executed and records, proud our a to records, be been have our and what current guidance. so track with well. we're to plans, incredibly on far. we're half setting going the very

guidance, of beyond obviously, there's providing. visibility lastly, top to there acceptance There's some associated because risk administration. revenue, essentially non-GAAP customer line the with existing with is what CR EBIT the chain and time That's the With change a for XX% in process. on why us In an looking our we're converting midpoint line on. And order the to recognizing situation numbers. and compared historically going supply profitability reaffirmed production to we revenue our of it the overperform that, backlog condition really still we're strong at guidance the

guidance, reconfirmed backlog year 'XX. be with growth up to healthy us all So it's top another beyond with year, for fiscal a with and but -- and very will we record strong going that, set line growth profits

metrics the past, measured all ourselves is being consistent which top, top that we is here and goal performance Our accountable we to to to. hold continue and are with deliver against

Skibitski with comes from Pete question Alembic Global. next Our

think you want couple that Wahid, in I about context. maybe and Army I don't just a involved to of us some ask were programs you can give

The this first was Army short-range reconnaissance program.

about think I as as can won. [ far record, you recall. But really it believe, I ] I of it's guys a program talk Redcat didn't

not a invest that and at validate And I there? for Maybe you believe that of to me didn't us it compete could compete why have leads you maybe chose you it to a or then sense all. give follow-up. So

a we it's of Pete, strongly A, on money back you decided while not as that not business we're globally lot can for capability much not we It customers if larger and that that compete companies, a some And several that of areas for shareholders. can value on our very that's There more program. evident the Sure, demand and focusing well see an that all market we deliver look regard. financials systemic and factors of a deliver more more of with going thing. are to as chose on these in at is that reasons our value to strategically a is customers a we in shareholders of very B, that different market to lot that our the that set why. we making go initially. easy intentionally

good And and I compete we just time, not opportunity. At did to we option outcome we really also sort those to of in want executing in market underline on the in that later program. had successful niches. back specific if not come to. needed to far terms that that So so always an have we same has the a monitor capabilities customer of continue And

program capabilities on time, further. to know, been still, you program around set and for even the right customers has find a to execute that long trying of As the that

readings SRR and the the actually on of are publicly been the announcements of program. correct, based But my the you customer, has next that tranche awarded Holdings Redcat

Okay.

And then Okay. that I all X just follow-up. appreciate color.

other or an award. the The that the few so RV making seen last we've is thing months over

know believe other And ], I of record. Kind companies effort X forgot I I was I to company, I nonprogram seemed I this of name turnaround [ look the type were, to award. Andrew it it maybe. think, got UAVs. be But think company-level for know of again. -- short up have X the of the an I maybe a

a record? context. here? this would what a -- is threat turn us thinking of could just And for Army sense LRR some the it And if niche into give you you us the Can I a to program program? is to wanted give

for decade AeroVironment an the warfighter's customer. very, billion strong perspective. market a LRR. have asked strong Pete. to the you half almost question it in glad That complementary the program. very represents It good, opportunity compelling threat It a we That incredibly is general not LRR need I'm for to decade from well, a the strong believe very have has program. that we the Sure. and long. as to $X worth And position. the or the LRR actually And lastly, from is very has that strong position program very of a a support next We in

a into that, set the out. opportunity. UAV, for Now with couple to the dollars they systems the other work learned we record That to, what MRR, not to be of with an a program for having couple Army con Reconnaissance see experimenting ISR, We're I said from would the experimentation these potential other that what is platforms. right were to record -- of ops, and performance like how is Army this what they if one This to Medium-Range they and referring capabilities a further with of see would small you're that opportunity, the phase to the from call, that go is program the intend the company-level platforms small initial, of U.S. compete program where watching program. out that, is solution a experiment very

track keeping But engage focus the like very to of actually And in. that we we we're for which are and that, past the for the Long-Range competition the in programs done However, from we believe expect we in we successfully us compete the the intend hear many that performing of other we compete main we've exercise believe in Army in that MRR. today and U.S. that next couple well so and months. far. to And something Reconnaissance really is the program, customer we can

from Andre with BTIG. comes [Operator Instructions] Madrid Our question next

attributed you roughly that question. out XX% quarter roughly sales? past maybe sales thanks much have was out previously, at point. called of for I to Wahid, Kevin, know Ukraine guys Could call the this some how you about

reach to resources. of tempo then, the -- a now, quarters, main expecting So I not And came them and that have Pumas our decided XXXX for the operating filings, reached and XX% about year of our last them. military whole give Andre, but of year they fiscal were Army driver didn't XX-K from historically, since any to I not think surge for was Ukraine. call revenue and to in And have when showed in we it a it Ukraine bunch that that in the level demand U.S. few of what

Pumas. of love the Ukraine. performance maintain continue in They ones got. Puma that And they've they is to Pumas unmatched more the Now to acquire

revenue and intentionally Switchblade. years top of that the have our business. X diversify well see line We we amount still been decided as to we've and for X.X demand grow continue deliver We as tremendous demand very for solutions, if a for so successfully can still to that's away, about years, our able growth mix Ukraine went our why make actually new achieve Pumas to actually sure as ago we that

Pumas demand loitering and well beyond have and stopped JUMP actually for Ukraine even regardless Ukraine munition sustain the that and including to going would continue Ravens and argue situation, tomorrow. of the world PXXXs small itself would XX is the I our to if UAS,

up. are see tremendous program a pipeline healthy lot coming for drivers beyond as those a my Ukraine. records lots and There's of There's products several we new of remarks earlier, of ] any of set that a have [ We announced very opportunities you new countries. platforms. of from in lots all And demand could well and

feel small well very our as our about both business. we in good position, UAS munitions as loitering in So

does plus of you we last have different this some zone countries Perfect. speak. the you How final something of remarks actively had and the number And in think which red this been stand seen quarter, with many with announced, zone number dozen Where now? so right to now? should we in finalization countries around there about I on about in of out we've asked on helpful. you're a That's your said with? that previously with, kind how half the additions engaging Have red those

Sure.

those you the I are X of then Taiwan their received asking just active just Sweden, placed We us. So reiterated Lithuania, Romania, see have initial initial orders they orders. countries: And with actually and case. X X I an and think today, Greece for are requesting and

installed U.S. a plus addition government state have another lot to time. of It which list I that base grow. are going dozen effort side. of customers of we to for customer of list the process. the actually In believe besides is to years, phases in takes continue the of to grow. these side within their half list quite to Switchblade a the process different going also The requires department And from And countries, continue countries, countries and are several the next acquisition and

munitions just I deliver that have domestic loitering the in very list And the loitering the business have going of strategy equivalent Switchblade next from robust this our and that I small countries or franchise gold business capability going fairly should customers countries that the terms next almost because and our from our foresee a in that we to And for is Switchblade similar so. we're of of going to set standard UAS that XX benefit decade are to allies all X to we benefit a to internationally in globe in are well. worked. the has international X large and years as segment to we thrilled invest to around customers think our to with now is our have internationally, munitions. of

the jump in queue. back the appreciate color. Really I'll

the now Jonah for remarks. to back conference I'd closing turn like to

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

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

call. today's concludes conference This

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