Drone Maker AeroVironment’s Stock Soars on Outlook
The conflicts in Ukraine and the Middle East have spurred fresh military interest in drones.
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@aerovironment the military drone maker's shares climbed to an all-time high after reporting Monday evening sales and profits that beat expectations for its fiscal third quarter, via Factset#drones #innovation pic.twitter.com/bvCDEwFWXM
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AeroVironment said sales of armed drones including its Switchblade more than doubled last quarter, with countries lining up to buy equipment that Ukraine has widely deployed.
The company’s shares climbed nearly 30% to an all-time high after reporting Monday evening sales and profits that beat expectations for its fiscal third quarter ended Jan. 27.
The conflicts in Ukraine and the Middle East have spurred fresh interest from the Pentagon and other militaries in drones of all shapes and sizes. AeroVironment is one of the few in the industry to scale mass production and generate profits.
CEO Wahid Nawabi said AeroVironment’s raised fiscal 2025 guidance doesn’t hinge on Congress agreeing to billions of dollars in supplemental military funding for Ukraine, which remains stalled by broader budget wrangling.
The Switchblade can fit in a backpack, and its use in Ukraine has drawn the attention of overseas militaries. Nawabi said on an investor call that around seven other countries are seeking export approval for the drone.
AeroVironment has been pursuing a role in the Pentagon’s Replicator program that aims to field thousands of drones over the next year.
