Key Drivers
- Margin collapse
- Negative cashflow
- High intangibles
AIAI Summary
AeroVironment has shifted from a high‑margin growth play into a program‑concentration and execution risk story—its ~$1.4B SCAR exposure and recent $151M goodwill impairment mean valuation now hinges on SCAR award clarity and demonstrable margin/cash‑flow recovery rather than backlog headlines; investors should watch for a confirmed SCAR win and two consecutive quarters of positive operating cash flow before treating backlog as real. If SCAR is lost or cash flow remains negative, downside from further impairments or dilution is materially elevated.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •Margin collapse
- •Negative cashflow
- •High intangibles
AVAV shows modest FY‑2025 profitability but a sharp Q1‑2026 deterioration with a $156.6M loss, collapsing margins and negative cash flow despite strong liquidity and moderate leverage.
Price Behavior
Key Price Behavior Insights:
- •Strong downtrend
- •Near short-term support
- •Elevated volatility
Stock is in a clear downtrend—about a 25% fall from $264.63 to $197.72 over the last month, closing at the recent low near short-term support ($197–$212) with resistance at $259–$265 (secondary $228–$230) and elevated volatility raising both bounce and breakdown risk.
25% drop from $264.63 to $197.72 over the last month indicating elevated short-term volatility
Sentiment & News
Key News Insights:
- •Backlog growth
- •Space Force loss
- •Margin pressure
AeroVironment sees robust tactical/counter‑drone demand and backlog growth but is weighed down by a possible Space Force contract loss, margin pressure from acquisitions and execution/supply risks that have driven marked stock volatility.
Strong end‑market fundamentals are overshadowed by contract and execution uncertainty, likely limiting near‑term upside until clarity on awards and margin recovery
Similar Companies in Industrials
Other companies in the same sector with AI ratings