Stephen Strackhouse's questions to AeroVironment Inc (AVAV) leadership • Q4 2025
Question
Stephen Strackhouse, on behalf of Ken Herbert at RBC Capital Markets, asked for a revenue breakdown between legacy AeroVironment and BlueHalo in the FY26 outlook, the expected profitability across the two new segments, and the free cash flow outlook for the year.
Answer
CFO Kevin McDonnell directed the question on revenue breakdown to the pro forma figures provided in the earnings presentation. Regarding profitability, he noted the Autonomous Systems segment's profile is similar to the legacy AV business. McDonnell guided for positive cash conversion in FY26, with working capital improvements expected to offset higher capital expenditures. CEO Wahid Nawabi added that the increased investment is a deliberate strategy to capture significant growth opportunities.