Another piece of evidence that the drone war is changing the rules of the game 🚁

AeroVironment $AVAV announced quarterly numbers that are simply impossible to ignore. Revenue $641.6M, year-over-year +133%, EPS $1.84 vs estimate $1.46. Shares jumped by more than 19%.

Behind it all is a combination of organic growth and two acquisitions (BlueHalo, Empirical Systems Aerospace), which added $282 million to the quarter. The Autonomous Systems segment – loitering munitions and counter-drone systems – is running at full speed as global militaries massively shift budgets toward drone warfare.

Backlog $1.2B, book-to-bill 1.4 for the fiscal year – meaning the company is taking more orders than it can invoice.

What caught my attention, however, is that insiders sold over the past three months, with no purchases. It’s not a dramatic amount, but after such a strong report it’s a detail worth monitoring.

Valuation now depends on whom you trust – some analysts (GF Value) view the stock as undervalued by tens of percent, while others warn that after a 20% jump a lot of good news is already priced in.

AVAV is, in any case, a clear reflection of where the defense industry is heading today – away from traditional platforms and toward autonomous, low-cost drone systems at scale. 📈

What’s your opinion on AeroVironment?