AeroVironment Shares Jump Over 20% as Autonomous Systems Drive 31% Growth
After-market trading saw AeroVironment shares surge over 20% to $167, driven by a hypergrowth Autonomous Systems division that generated 77% of revenue and propelled Q4 sales to a record $641.6 million with 31% organic growth. Adjusted EBITDA doubled to $140.1 million, yielding a 22% margin.
1. After-Hours Trading Surge
AeroVironment stock vaulted more than 20% in after-market hours to reach $167, a move attributed to a fundamental operational shift rather than solely quarterly results. The rapid re-rating underscores investor confidence in sustainable long-term drivers.
2. Autonomous Systems Division Performance
The Autonomous Systems division accounted for 77% of total revenue in Q4, pushing sales to a record $641.6 million with 31% organic year-over-year growth. A shift toward high-margin tactical loitering munitions doubled adjusted EBITDA to $140.1 million, delivering a 22% margin.
3. SCAR Program Cancellation Headwind
Termination of the SCAR program eliminated $1.5 billion in unfunded backlog and triggered a $240.7 million goodwill impairment, prompting a cautious non-GAAP EPS outlook of $3.02 to $3.34 for fiscal 2027. These factors created short-term uncertainty despite core strength.
4. Strong Demand Visibility and Backlog
Total bookings reached $2.7 billion in the quarter, producing a full-year book-to-bill ratio of 1.4x. Funded backlog hit a record $1.2 billion, indicating robust inbound demand and supporting sustained production and margin expansion.
