AeroVironment Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 10 December 2025: press release. Guidance figures: 2 raised, 5 kept. The quarter’s numbers.

Key takeaways

Revenue reached $472.5 million: Revenue was $472.5 million, up 151% from $188.5 million a year earlier. BlueHalo contributed $245.1 million; legacy revenue was $227.4 million, up 21%.
GAAP net loss and per-share loss: GAAP net loss was $(17.1) million, or $(0.34) per diluted share, against net income of $7.5 million, or $0.27 per share, a year earlier.
AxS revenue and segment profit: Autonomous Systems (AxS) revenue was $301.6 million, with segment adjusted EBITDA of $51.4 million.
$874 million FMS IDIQ award: A $874 million FMS IDIQ contract covers delivery of Puma, Raven, P550, JUMP 20, counter-UAS and Switchblade systems. Source
GAAP gross margin fell to 22%: GAAP gross margin was $104.1 million, or 22% of revenue, against 39% a year earlier, on a larger services share and higher amortization.
Book-to-bill ratio at 2.9: Book-to-bill ratio was 2.9 for the quarter, with bookings of $1.4 billion.
Funded backlog reached $1.1 billion: Funded backlog was $1.1 billion at November 1, 2025, compared with $726.6 million at April 30, 2025.
Operating cash outflow for six months: Net cash used in operating activities was $(168.8) million for the six months, against $24.7 million provided a year earlier.

“AV is operating from a position of strength as evidenced by our record second quarter results, all-time high bookings and long-term contract wins,”
Wahid Nawabi, AeroVironment chairman, president and chief executive officer

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	Fiscal 2026	$1.95 billion to $2.0 billion	Raised
Net loss	Fiscal 2026	$(38) million to $(30) million	Kept
Loss per diluted share	Fiscal 2026	$(0.76) to $(0.61)	Kept
Adjusted EBITDA	Fiscal 2026	$300 million to $320 million	Kept
Adjusted EBITDA margin Source	Fiscal 2026	about 15.7% at mid-point
Non-GAAP earnings per diluted share	Fiscal 2026	$3.40 to $3.55	Kept
Adjusted EBITDA margin path Source	Q2 to Q4 fiscal 2026	8% to 10% in Q2, rising to high teens by Q4
Revenue phasing Source	Q3 and Q4 fiscal 2026	Q3 45%, Q4 55%
Second-half adjusted EBITDA phasing Source	Q3 and Q4 fiscal 2026	30% in Q3, 70% in Q4
IRAD (research and development) as % of revenue Source	Fiscal 2026	6% to 8%
Adjusted SG&A as % of revenue Source	Fiscal 2026	12% to 14%
Stock-based compensation Source	Fiscal 2026	approximately $38 million	Kept
Deal and integration expenses Source	Fiscal 2026	$37 million to $42 million	Raised from $37 million to $39 million
Capital expenditures Source	Fiscal 2026	6% to 8%

What changed from last quarter

Guidance raised: Lower end of the fiscal 2026 revenue range raised; the range is now $1.95 billion to $2.0 billion. Source
Guidance raised: Full-year deal and integration expense range is $37 million to $42 million, against $37 million to $39 million in the prior release. Source
New: Several new products were launched during the quarter, aligned to customer priorities. Source
New: Unfunded backlog roll-forward includes a $937 million change due to a definition change. Source

Second-quarter results and growth

Revenue reached $472.5 million: Revenue was $472.5 million, up 151% from $188.5 million a year earlier. BlueHalo contributed $245.1 million; legacy revenue was $227.4 million, up 21%.
GAAP net loss and per-share loss: GAAP net loss was $(17.1) million, or $(0.34) per diluted share, against net income of $7.5 million, or $0.27 per share, a year earlier.
Adjusted EBITDA and non-GAAP EPS: Adjusted EBITDA was $45.0 million, against $25.9 million. Non-GAAP diluted EPS was $0.44, against $0.47 a year earlier.
Operating loss from purchase accounting: Operating loss was $(30.2) million, against operating income of $7.0 million a year earlier. Intangible amortization and purchase accounting expenses were $48.2 million, up from $4.8 million.
Other income rose on interest: Other income, net was $9.6 million, against other loss of $(0.7) million a year earlier, reflecting higher interest income on larger cash and investment balances.

Segment results

AxS revenue and segment profit: Autonomous Systems (AxS) revenue was $301.6 million, with segment adjusted EBITDA of $51.4 million.
SCDE revenue and segment loss: Space, Cyber and Directed Energy (SCDE) revenue was $170.9 million, with segment adjusted EBITDA of $(6.5) million.
AxS pro forma quarterly trend: Pro forma AxS revenue was $261.4 million in Q2 FY25 and $285.3 million in Q1 FY26, against $301.6 million in Q2 FY26. Pro forma figures are unaudited. Source

“While we are pleased with our results for the quarter, we are just getting started.”
Wahid Nawabi, AeroVironment chairman, president and chief executive officer

Products, awards and customers

Company describes integrated capabilities across domains: The company describes itself as a defense technology leader delivering integrated capabilities across air, land, sea, space and cyber.
$874 million FMS IDIQ award: A $874 million FMS IDIQ contract covers delivery of Puma, Raven, P550, JUMP 20, counter-UAS and Switchblade systems. Source
$500 million Air Force materials award: A $500 million Air Force contract covers advancing electromagnetic survivable materials. Source
Space awards for BADGER and KAIROS: Space awards included $75 million for two BADGER systems for the Space Force, and $385 million for long-haul laser communications terminals. Source
Other awards for GENESIS and LRKI: Other awards were $98 million for GENESIS spectral imaging simulators and $96 million to deliver FE-1 for the U.S. Army's LRKI interceptor program. Source
Record second-quarter awards and ceiling: Record second-quarter contract awards carried a $3.5 billion ceiling, with bookings of nearly $1.4 billion. Source

Costs and margins

SG&A rose on BlueHalo costs: SG&A was $98.3 million, or 21% of revenue, against $37.9 million a year earlier, an increase of $60.4 million.
Adjusted SG&A and R&D ratios: Adjusted SG&A was 14% of revenue. R&D was $36.0 million, or 8% of revenue. Source
GAAP gross margin fell to 22%: GAAP gross margin was $104.1 million, or 22% of revenue, against 39% a year earlier, on a larger services share and higher amortization.
Adjusted product and service margins: Adjusted product gross margin was 33%, against 36% in Q1 FY26. Adjusted service margin was 14%, against 13%. Revenue was 69% product and 31% services. Source
GAAP product and service margins: GAAP product margin was 25.7% and GAAP service margin was 13.9% in the quarter. Source
Amortization absorbed gross margin: Gross margin absorbed $24.2 million of intangible amortization and other non-cash purchase accounting expense, against $3.7 million a year earlier.

“We are confident that our unmatched innovation, strategic partnerships and agility to expand our manufacturing capacity enable us to address evolving defense needs and lead the generational shift in defense over the longer-term.”
Wahid Nawabi, AeroVironment chairman, president and chief executive officer

Demand, backlog and visibility

Book-to-bill ratio at 2.9: Book-to-bill ratio was 2.9 for the quarter, with bookings of $1.4 billion.
Funded backlog reached $1.1 billion: Funded backlog was $1.1 billion at November 1, 2025, compared with $726.6 million at April 30, 2025.
Unfunded backlog at $3.0 billion: Unfunded backlog was $3,034 million at November 1, 2025. New unfunded bookings were $1,158 million in the quarter. Source
Visibility shown against revenue range: Visibility percentages of 70%, 82% and 93% are shown against the revenue range, with revenue, backlog and bookings as components. Source

Capital, cash and balance sheet

Share and convertible debt proceeds: Six-month financing inflows included $968.5 million of net share proceeds and $726.9 million of net convertible debt proceeds.
Cash and investments on hand: Cash and cash equivalents were $359.4 million at November 1, 2025, against $40.9 million at April 30, 2025, plus $229.0 million of short-term investments.
Operating cash outflow for six months: Net cash used in operating activities was $(168.8) million for the six months, against $24.7 million provided a year earlier.
Acquisitions and investing outflows: Business acquisitions, net of cash acquired, were $844.6 million for the six months. Net cash used in investing activities was $1,157.7 million.
Term loan repaid and debt raised: Term loan principal of $700.0 million was repaid in the six months, and $693.2 million of long-term debt proceeds were received.
Shares outstanding increased to 49.9 million: Shares outstanding were 49.9 million at November 1, 2025, up from 28.3 million at April 30, 2025.

Coming up, as management said on 10 December 2025

Expanding manufacturing capacity continues: Management said it continued to execute on expanding manufacturing capacity during the quarter. Source

Figures management reported

Figure	Reported
Funded backlog	$1.1 billion
Unfunded backlog Source	$3,034 million ($3.0 billion)
Book-to-bill ratio (quarter)	2.9
Book-to-bill ratio (fiscal year to date) Source	1.84

Risks management discussed

Demand: Unfunded backlog depends on appropriations and task orders still pending, and converts to funded backlog as they are executed. Source
Demand: $275 million of unfunded backlog expired in the quarter, and $4 million was reduced by orders. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Second Quarter Fiscal Year 2026 Earnings Conference Call DECEMBER 9, 2025 CORRECTED AS OF 12/10/25

© 2025 AEROVIRONMENT, INC. [ 2 ] Safe Harbor Statement This press release contains "forward - looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward - looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future resul ts, performance or achievements, and may contain words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan ,” or words or phrases with similar meaning. Forward - looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our co ntr ol, that may cause our business, strategy or actual results to differ materially from the forward - looking statements.

Factors that could cause actual results to differ materially from the forward - looking statements include, but are not limited to , the impact of our ability to successfully close and integrate acquisitions into our operations and avoid disruptions from acquisition transacti ons that will harm our business; the recording of goodwill and other intangible assets as part of acquisitions that are subject to potential impairm ent s in the future and any realization of such impairments; any actual or threatened disruptions to our relationships with our distributors, supplie rs, customers and employees, including shortages in components for our products, whether due to restrictions and sanctions imposed by foreign g ove rnments or otherwise; the ability to timely and sufficiently integrate international operations into our ongoing business and compliance pr ograms; reliance on sales to the U.S. government, including uncertainties in classification, pricing or potentially burdensome imposed terms f or certain types of government contracts; availability of U.S. government funding for defense procurement and R&D programs; our ability to win U. S. and international government R&D and procurement programs, including foreign military financing aid; changes in the timing and/or am ount of government spending, including due to continuing resolutions and/or changing government priorities; adverse impacts of any U. S. government shutdown; our ability to realize the anticipated benefits of the BlueHalo transaction or other acquisitions; our ability to execute contracts for anticipated sales, perform under such contracts and other existing contracts and obtain new contracts; risks related to our i nte rnational business, including compliance with export control laws; the extensive and increasing regulatory requirements governing our c ont racts with the U.S. government and international customers; the consequences to our financial position, business and reputation that could r esu lt from failing to comply with such regulatory requirements; unexpected technical and marketing difficulties inherent in major research and p rod uct development efforts; the impact of potential security and cyber threats or the risk of unauthorized access to and resulting m isu se of our, our customers’ and/or our suppliers’ information and systems; failure to remain a market innovator, to create new market opportun iti es or to expand into new markets; our ability to increase production capacity to support anticipated growth; unexpected changes in significan t o perating expenses, including components and raw materials; failure to develop new products or integrate new technology into current pr odu cts; any increase in litigation activity or unfavorable results in legal proceedings, including pending class actions, or litigation t hat may arise from or in conjunction with our recent acquisition of BlueHalo ; our ability to respond and adapt to legal, regulatory and government budgetary changes; our ability to comply with the covenants in our loan documents, outstanding convertible notes or merger agreement with BlueHalo ; our ability to attract and retain skilled employees, including retention of BlueHalo employees; the impact of inflation; and general economic and business conditions in the United States and elsewhere in the world; and the failure to establish and maintain effective internal cont rol over financial reporting.

For a further list and description of such risks and uncertainties, see the reports we file with the Securities an d E xchange Commission. We do not intend, and undertake no obligation, to update any forward - looking statements, whether as a result of new information, future events or otherwise.

© 2025 AEROVIRONMENT, INC. [ 3 ] AV launched several new products aligned to our customers' highest priorities and continued to execute on expanding manufacturing capacity Record second quarter revenue of nearly $473 million driven by strong sales in the AxS segment Raising lower end of FY26 revenue guidance ; fiscal year revenue guidance now between $1.95 and $2.0 billion Record second quarter contract awards with a ceiling of $3.5 billion ; bookings of nearly $1.4 billion; funded backlog of $1.1 billion and unfunded backlog of $3.0 billion 1 Second Quarter Fiscal Year 2026 Key Messages 1 REFER TO APPENDIX FF OR DEFINITIONS OF AWARDS, BOOKINGS, FUNDED BACKLOG AND UNFUNDED BACKLOG CORRECTED AS OF 12/10/25

© 2025 AEROVIRONMENT, INC. [ 4 ] Second Quarter Fiscal Year 2026 Results 1 Q2 GAAP NET LOSS WAS ($17.1M). REFER TO ADJUSTED EBITDA RECONCILIATION ON APPENDIX C . 2 Q2 GAAP EPS WAS ($ 0.34 ) PER DILUTED SHARE. REFER TO RECONCILIATION OF NON - GAAP EARNINGS PER DILUTED SHARE ON APPENDIX A. 3 GAAP SG&A WAS 21% of Q2 REVENUE.

REFER TO GAAP TO NON - GAAP RECONCILIATION OF ADJUSTED SG&A ON APP ENDIX G. Notes Q2 FY26 Metric

Strong revenue growth in AxS segment
Increased services mix with BlueHalo acquisition and higher intangible amortization
Adjusted SG&A = 14% of revenue 3
R&D = 8% of revenue $ 472.5 M Revenue $104.1 M GAAP Gross Margin $45.0 M Non - GAAP Adjusted EBITDA 1 $0.44 Non - GAAP EPS (diluted) 2 Strong backlog from AxS $1.1 B Funded Backlog Strong unfunded backlog from both segments $3.0 B Unfunded Backlog CORRECTED AS OF 12/10/25

© 2025 AEROVIRONMENT, INC. [ 5 ] $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 AxS $261.4 $223.4 $330.6 $285.3 $301.6 SCDE $170.9 $160.0 $163.5 $169.4 $170.9 $383.4 $472.5 $454.7 $432.3 $ 494.1 Revenue Mix, Adjusted Profitability and Non - GAAP EPS 1 PRO FORMA FY25 QUARTERLY REVENUE (unaudited) INCLUDES BLUEHALO REVENUES FROM BEFORE ACQUISITION. 2 Q2 FY26 GAAP PRODUCT MARGIN: 25.7% | SERVICE MARGIN 13.9%. REFER TO GAAP TO NON - GAAP RECONCILIATION OF GROSS MARGIN ON APP END I XB. 3 REFER TO RECONCILIATION OF NON - GAAP DILUTED EARNINGS PER SHARE ON APPENDIX A. QUARTERLY REVENUE BY SEGMENT 1 AxS : Autonomous Systems SCDE : Space, Cyber and Directed Energy 36% 33% 13% 14% 29% 27% 0% 20% 40% Q1 FY26 Q2 FY26 Adj Product Margin Adj Service Margin Total Adj Gross Margin $ 0.47 $ 0.44 $- $0.20 $0.40 $0.60 $0.80 $1.00 Q2 FY25 Q2 FY26 NON - GAAP DILUTED EPS 3 Q2 FY26 Revenue: 69% Product | 31% Services ($M) ADJUSTED GROSS MARGIN

© 2025 AEROVIRONMENT, INC. [ 8 ] Updated Guidance: Fiscal 2026 Outlook 1 Q2 GAAP EPS OF $(0.34). REFER TO FORECASTED EARNINGS PER DILUTED SHARE RECONCILIATION ON APP END I XD. 2 Q2 GAAP NET LOSS OF $(17.1M). REFER TO FORECASTED NON - GAAP ADJUSTED EBITDA RECONCILIATION ON APP END I XE. 3 REFER TO ADJUSTED EBITDA RECONCILIATION ON APPENDIX C. 4 REFER TO RECONCILIATION OF FISCAL YEAR 2026 QUARTER 2 NON - GAAP DILUTED EARNINGS PER SHARE ON APPENDIX A. 5 REFER TO GAAP TO NON - GAAP RECONCILIATION OF ADJUSTED SG&A ON AP PENDIX G.

NOTES / ASSUMPTIONS FY26 GUIDANCE FY26 Q2 RESULTS AS OF 12/09/2025 Q3 = 45% Q4 = 55% $1.95 to $2.0 billion $ 472.5 million Revenue

Adj EBITDA % Trending 8% - 10% in Q2 to High Teens % by Q4
IRAD 6% to 8%
Adj SG&A 12% to 14% (excludes intangible amortization and deal and integration expenses) 5
Stock Based Compensation of approx. $38 Million for FY26
Second half Adj EBITDA forecast 30% in Q3 and 70% in Q4 $300 million - $320 million 2 ~15.7% at mid - point 2 $45.0 million 3 Adjusted EBITDA 9.5% of Revenue $3.40 - $3.55 1 $ 0.44 4 Non - GAAP Earnings Per Share (diluted)
Includes Cloud Implementation Capital Expenditures
Includes Software Capitalization
Includes Integration related Capital Expenditures 6% - 8% 3.7% Capital Expenditures
Deal & Integration Expenses $37M - $42M
Excluding Capital Expenditures Other

© 2025 AEROVIRONMENT, INC. [ 9 ] Revenue [Millions] Visibility for FY26 1 BASED ON MIDPOINT OF GUIDANCE RANGE OF $1.95 TO $2.0 BILLION. $454.7 $927.2 $1,003.8 $855.7 $675.7 $115.5 $43.8 $245.4 $175.4 $186.8 $- $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 Q4 FY25 (6/24/25) Q1 FY26 (9/9/25) Q2 FY26 (12/9/25) Q3 FY26 Q4 FY26 Revenue: Unfunded Backlog Anticipated this FY Revenue: Qtr-to- Date Bookings Anticipated this FY Revenue: Funded Backlog Anticipated this FY Revenue Year-to- Date $ 112.0 Company visibility supports revenue guidance range 70 % visibility 1 Revenue Guidance Range : $ 1.95 to $ 2.0B 82 % visibility 1 93 % visibility

© 2025 AEROVIRONMENT, INC. [ 10 ] Major Second Quarter and Subsequent Awards _ SPACE & DIRECTED ENERGY $75M Space Force Award for Two BADGER Systems Strengthens SCAR Production PROGRAM: SCAR 1 _ CYBER & MISSION SOLUTIONS $98M Generative Environment for the Next Era of Spectral Imaging Simulators PROGRAM: GENESIS 3 _ CUAS & PRECISION STRIKE $96M Contract to Deliver FE - 1 for U.S. Army’s Long - Range Kinetic Interceptor PROGRAM: LRKI 2 _ SPACE & DIRECTED ENERGY $385M Contract Award for Long - haul Laser Communications Terminals PROGRAM: KAIROS 4 _ CYBER & MISSION SOLUTIONS $500M Air Force Contract to Advance Electromagnetic Survivable Materials PROGRAM: HELMSSMAN 5 _ CUAS & PRECISION STRIKE AND UNCREWED AIRCRAFT SYSTEMS $874M Contract to Deliver Puma, Raven, P550, JUMP 20, C - UAS & Switchblade Systems PROGRAM: FMS IDIQ

Financial Tables

© 2025 AEROVIRONMENT, INC. [ 12 ] Reconciliation of Non - GAAP Earnings per Diluted Share (unaudited) APPENDIX A - FINANCIAL TABLES Three months ended November 1, 2025 Three months ended August 2, 2025 $ (0.34) $ (1.44) Loss per diluted share $ 0.13 $ 0.52 Acquisition - related expenses $ 0.77 $ 1.34 Amortization of acquired intangible assets and other purchase accounting adjustments $ (0.12) $ (0.10) Equity Method and equity securities investments activity, net $ 0.44 $ 0.32 Earnings per diluted share as adjusted (non - GAAP)

© 2025 AEROVIRONMENT, INC. [ 13 ] GAAP to NON - GAAP Reconciliation of Adjusted Gross Margin APPENDIX B - FINANCIAL TABLES 2nd Quarter FY2026 1st Quarter FY2026 (in thousands) Products 83,640 $ 82,846 $ Gross Margin 23,482 $ 31,245 $ Intangible Amortization 107,122 $ 114,901 $ Adjusted Gross Margin 33% 36% Adj. Prod GM% Services 20,465 $ 12,272 $ Gross Margin 764 $ 6,134 $ Intangible Amortization 21,229 $ 18,406 $ Adjusted Gross Margin 14% 13% Adj. Service GM%

© 2025 AEROVIRONMENT, INC. [ 14 ] Net Income to EBITDA and non - GAAP Adjusted EBITDA Reconciliation APPENDIX C - FINANCIAL TABLES Fiscal 2nd Quarter 2026 Fiscal 1st Quarter 2026 (in $ millions) (17.1) (67.4) Net loss from continued operations (4.7) 17.4 Interest Expense, net (2.3) (15.2) Tax benefit 58.1 90.3 Depreciation and amortization 34.0 25.1 EBITDA (Non - GAAP) 1.4 0.9 Cloud amortization 8.6 11.4 Stock - based compensation 8.3 23.7 Acquisition - related expenses (7.3) (4.5) Equity method and equity security investment activity 45.0 $ 56.6 $ Adjusted EBITDA (Non - GAAP)

© 2025 AEROVIRONMENT, INC. [ 15 ] GAAP to Non - GAAP Reconciliation of Earnings per Diluted Share (Unaudited) APPENDIX D - FINANCIAL TABLES Fiscal year ended April 30, 2026 Fiscal year ended April 30, 2025 $(0.76) - (0.61) $1.55 Earnings (loss) per diluted share $0.74 $0.54 Acquisition - related expenses $3.63 $0.66 Amortization of acquired intangible assets and other purchase accounting adjustments 0 $0.06 Legal accrual $(0.21) $(0.18) Equity Method and equity securities investments activity, net 0 $0.65 Goodwill impairment $3.40 - 3.55 $3.28 Earnings per diluted share as adjusted (non - GAAP)

© 2025 AEROVIRONMENT, INC. [ 16 ] Reconciliation of 2026 Forecast and Fiscal Year 2025 Non - GAAP adjusted EBITDA (Unaudited) APPENDIX E - FINANCIAL TABLES Fiscal year ended April 30, 2025 Fiscal year ended April 30, 2026 (in millions) 44 $ (38) - (30) $ Net (loss) Income from continued operations 2 4 - 8 Interest Expense, net 1 (16) - (9) Tax (benefit) / provision 41 279 Depreciation and amortization 88 230 - 248 EBITDA (Non - GAAP) 2 7 Cloud amortization 22 38 Stock - based compensation 19 37 - 39 Acquisition - related expenses 18 0 UGV Goodwill Impairment (5) (12) Equity method and equity security investment activity 2 0 Legal Accrual 146 $ 300 - 320 $ Adjusted EBITDA (Non - GAAP)

© 2025 AEROVIRONMENT, INC. [ 17 ] AVAV Contracting Related Definitions APPENDIX F - FINANCIAL TABLES Q2 FY26 Results Definition Term $3.5B The total potential value of a contract at time of announcement, including all base period value , priced options , expected follow - on periods , and any anticipated modifications if they are contractually priced. Award represents the maximum economic opportunity associated with the contract but does not imply full near - term funding or customer obligation. Award $1.4B (QTD) $1.7B (YTD) The value of new authorized/exercised contract awards and contract modification s received during the reporting period.

Bookings typically include the total contract value for new awards and the incremental value of modifications. Bookings include authorized contract values where the customer has provided contractual authority to perform work, even if funding has not yet been obligated, but does not include the unauthorized portion of TCV. Bookings $1.1B The portion of backlog for which the customer has provided appropriated, obligated funding that the company is currently authorized to spend.

Funded backlog is the most “cash - certain” portion of backlog, representing work the company can execute immediately and bill against. This is often driven by U.S. DoD funding obligations and contract increments.

Funded Backlog $3.0B The remaining value of awarded contracts for which the customer has not yet obligated funding . These amounts reflect future expected funding - commonly tied to multi - year programs where annual appropriations, options, or increments are still pending. Unfunded backlog is typical in large defense programs and is converted to funded backlog as appropriations and task orders are executed.

Unfunded Backlog 1.84 (YTD) The book - to - bill ratio measures the relationship between the value of new orders booked in a given period (Fiscal YTD) and the revenue billed or recognized over that same period. Book - to - bill ratio is calculated by dividing period bookings by period revenues. Book - to - Bill Ratio CORRECTED AS OF 12/10/25

© 2025 AEROVIRONMENT, INC. [ 18 ] GAAP to non - GAAP Reconciliation of Adjusted SG&A (Unaudited) APPENDIX G - FINANCIAL TABLES FY2026 Full Year Forecast FY2025 2nd Quarter QTD FY2026 2nd Quarter QTD FY2025 (in thousands) SG&A Reconciliation 1,975,000 $ 820,627 $ 472,508 $ 188,458 $ Revenue 411,744 $ 158,753 $ 98,336 $ 37,916 $ Total SG&A 21% 19% 21% 20% Total SG&A % of Revenue 38,002 $ 19,291 $ 8,256 $ 3,684 $ Acquisition Expense 120,419 $ 4,001 $ 23,952 $ 1,075 $ Intangible Amortization 253,323 $ 135,461 $ 66,128 $ 33,157 $ Adjusted SG&A 13% 17% 14% 18% Adjusted SG&A % of Revenue

© 2025 AEROVIRONMENT, INC. [ 19 ] Q2 FY26 Total Unfunded Backlog Roll Forward APPENDIX H - FINANCIAL TABLES Total Unfunded Backlog ($M) Total Roll Forward Q1'26 Unfunded Backlog as of 8/2/2025 3,092$ Change in Unfunded Backlog due to Definition (937)$ Q2'26 Expired Unfunded Backlog (275)$ Q2'26 Orders Reducing Unfunded Backlog (4)$ Q2'26 New Unfunded Bookings 1,158$ Total Q2'26 Unfunded Backlog as of 11/1/2025 3,034$ CORRECTED AS OF 12/10/25