Austin Bohlig

Austin Bohlig asked if the significant funding from the Omnibus Bill (OBV) that has yet to be allocated to specific departments is fully baked into AeroVironment's current fiscal year guidance, suggesting it might offer upside if contracts flow in the coming quarters.

Answer

Chairman, President, and CEO Wahid Nawabi clarified that some of the OBV funding is included in the guidance, but not all, due to the fluid timing of fund allocation and contracting by customers. He explained that delays in budget approval or fund release could shift some expected revenue from this fiscal year to the next, impacting the ability to execute against it within the current year. Regardless, Mr. Nawabi expressed strong confidence in achieving a great year with robust performance and a strong pipeline for fiscal year 2027.

Austin Bohlig asked if the significant funding from the OBV (Omnibus Bill) that has yet to be allocated is fully baked into AeroVironment's current guidance, potentially leaving room for upside, and which technologies or products this funding primarily targets.

Answer

Wahid Nawabi, Chairman, President, and CEO, clarified that some, but not all, OBV funding is in the guidance due to fluid timing and allocation processes. He noted that delays could shift execution to the following year but still expects a strong year with a robust pipeline beyond FY2026. He emphasized that the funding and urgent needs are broad, covering drones, loitering munitions, counter-UAS (RF, lasers), Golden Dome, AV Halo software, Titan jammers, space laser communication, and phased arrays/Scar/Badger systems, indicating widespread opportunities.

Austin Bohlig asked if AeroVironment's current fiscal year guidance fully incorporates the large funding from the Omnibus Budget Deal (OBD) and if there's potential upside if contracts flow over the next couple of quarters. He also inquired which specific technologies or products are the focus of the funding included in the current guidance.

Answer

Chairman, President, and CEO Wahid Nawabi stated that some, but not all, OBD funding is baked into guidance due to fluid timing and execution windows. He noted that delays could shift revenue to the following year but expressed confidence in a strong year and pipeline for fiscal year 2026 and beyond. He emphasized that funding and urgent needs span across drones, loitering munitions, counter-UAS, lasers, software, and space technologies, indicating broad opportunities.