Aerovironment, Inc. (NASDAQ: AVAV) has released its fiscal first quarter results for the period ending August 2, 2025. The company reported record revenue of $454.7 million, a substantial 140% increase compared to the first quarter of fiscal 2025, where revenue stood at $189.5 million. This growth was primarily driven by higher product sales, which amounted to $154.0 million, and higher service revenue, which reached $111.2 million. The acquisition of BlueHalo, which was completed on May 1, 2025, contributed $235.2 million in revenue during the first quarter.
The gross margin for the first quarter of fiscal 2026 was $95.1 million, representing a 17% increase from the first quarter of fiscal 2025. However, as a percentage of revenue, gross margin fell to 21% from 43%, primarily due to increased amortization and other non-cash purchase accounting expenses and an increase in the proportion of service revenue resulting from the BlueHalo acquisition.
The company reported a loss from operations of $(69.3) million for the first quarter of fiscal 2026, compared to income from operations of $23.1 million for the same period in fiscal 2025. This decrease was primarily due to an increase in selling, general and administrative expenses, including higher intangible amortization, acquisition-related expenses, and incremental headcount resulting from the BlueHalo acquisition, as well as an increase in research and development expenses.
The net loss for the first quarter of fiscal 2026 was $(67.4) million, or $(1.44) per diluted share, compared to net income of $21.2 million, or $0.75 per diluted share, in the first quarter of fiscal 2025. This decrease was primarily due to the impact of $79.7 million, or $1.34 per diluted share, of intangible amortization and other related non-cash purchase accounting expenses in the first quarter of fiscal 2026, compared to $4.8 million, or $0.13 per diluted share, in the first quarter of fiscal 2025.
The non-GAAP adjusted EBITDA for the first quarter of fiscal 2026 was $56.6 million, lower than the $37.2 million reported for the first quarter of fiscal 2025. Similarly, non-GAAP earnings per diluted share were $0.32, down from $0.89 in the first quarter of fiscal 2025.
Looking forward, Aerovironment expects revenue for fiscal year 2026 to be between $1.9 billion and $2.0 billion, with a net loss of between $(77) million and $(72) million. The company also anticipates non-GAAP adjusted EBITDA to be between $300 million and $320 million, and non-GAAP earnings per diluted share, which excludes certain expenses, to be between $3.60 and $3.70.
Aerovironment also highlighted its strong backlog, which stood at $1.1 billion as of August 2, 2025, up from $726.6 million as of April 30, 2025, indicating strong demand for its products and services. Bookings during the first quarter of fiscal 2026 amounted to $399.0 million, and the company has visibility of 80% of the fiscal year 2026 revenue.
These results and outlook reflect the company's confidence in its ability to capture growing demand and its optimism about the future growth opportunities in the defense sector. As a result of these announcements, the company's shares have moved -1.95% on the market, and are now trading at a price of $232.28. Check out the company's full 8-K submission here.
