AeroVironment (AVAV) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 revenue of $717 million, up 33% year-over-year, and record Q4 revenue of $197 million, up 6% from Q4 FY23, marking the seventh consecutive year of top-line growth.

• Loitering Munition Systems (LMS) segment delivered nearly $200 million in annual revenue, leading company growth and driving strong product sales.

• Strong global demand for autonomous and AI-enabled systems drove investments in team, manufacturing, and product innovation.

• Added new board members and leadership to support growth and customer engagement.

• Returned to profitability with FY net income of $59.7 million after prior year losses.

Financial highlights

• FY2024 revenue: $716.7 million (+33% YoY); Q4 revenue: $197 million (+6% YoY).

• Net income for FY2024: $59.7 million, compared to a net loss of $176.2 million in FY2023; Q4 net income: $6.0 million.

• Adjusted EBITDA for FY2024: $128 million (+42% YoY); Q4 adjusted EBITDA: $22 million (-52% YoY).

• Adjusted diluted EPS for FY2024: $2.99 vs. $1.26 last year; Q4 adjusted EPS: $0.43 vs. $0.99 last year.

• Funded backlog at year-end was $400.2 million, down 6% year-over-year due to order timing.

Outlook and guidance

• FY2025 revenue guidance: $790–$820 million (10–15% growth); net income forecast: $74–$83 million; adjusted EBITDA: $143–$153 million.

• FY2025 diluted EPS guidance: $2.61–$2.92; non-GAAP EPS: $3.18–$3.49.

• R&D expected at 12–13% of revenue; tax rate to rise to 8–9%.

• 55% revenue visibility for FY2025 based on current backlog and bookings, excluding new program wins expected to exceed $300 million.

• Expect first half FY2025 revenue to be about 45% of full year, with Q1 about half of first half.