AeroVironment Inc

Equity Research 16 September 2026 | 8:52PM EDT

AeroVironment Inc. (AVAV) Strong quarter, FY27 guidance reiterated; Buy

AVAV 12m Price Target: $285.00 Price: $156.45 Upside: 82.2% BUY Noah Poponak, CFA | Our view on the stock post F1Q27 earnings Goldman Sachs & Co. LLC

AVAV reported F1Q27 results ahead of consensus on revenue, Connor Dessert | EBITDA, margin, and EPS. Funded backlog was up 37% yoy and up Goldman Sachs & Co. LLC

23% sequentially, driven by orders in AxS. The company maintained Nizar Mesani | FY2027 revenue and EBITDA guidance, citing a conservative Goldman Sachs India SPL

posture. AVAV has exposure to faster growing portions of the defense budget, which we believe will drive better than industry Key Data _____________________________________ average organic revenue growth, with margin expansion, over the Market cap: $7.8bn Enterprise value: $8.2bn medium-term. We are Buy rated on the stock. 3m ADTV: $302.9mn United States Americas Aerospace & Defense M&A Rank: 3 Key elements of the quarter GS Forecast __________________________________ F1Q27 revenue of $480.5mn was 6.3% above FactSet consensus. 4/26 4/27E 4/28E 4/29E

Adjusted EBITDA of $53.4mn was 36.6% above consensus, on a Revenue ($ mn) New 1,976.8 2,202.1 2,536.3 2,981.2 Revenue ($ mn) Old 1,976.8 2,191.8 2,551.1 2,996.0 11.1% EBITDA margin. Autonomous services adjusted EBITDA EBITDA ($ mn)

margin was 18% and Space, Cyber, and Directed Energy was (6.6)%. EBIT ($ mn) EPS ($) New ( Total company reported book to bill was 1.4X in the quarter. Funded EPS ($) Old P/E (X) backlog was up 23% sequentially and 37% yoy at $1.5bn. Free cash Dividend yield (%) 0.0 0.0 0.0 0.0 flow was $(30.5)mn, up from $(146.5)mn a year ago. The company Net debt/EBITDA (X) 1.2 1.3 0.9 0.4

maintained its FY27 EPS guidance of $3.02-$3.34 (compared to 8/26 10/26E 1/27E 4/27E consensus at $3.23), revenue guidance of $2.125-2.225bn EPS ($)

(compared to FactSet consensus at $2.19bn) and adj. EBITDA GS Factor Profile ______________________________ Growth guidance of $305-325mn (compared to consensus at $323mn). Financial Returns

Percentile 20th 40th 60th 80th 100th

AVAV relative to Americas Coverage AVAV relative to Americas Aerospace & Defense

Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

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Goldman Sachs AeroVironment Inc. (AVAV)

AeroVironment Inc. (AVAV) Balance Sheet ($ mn) _______________________________________ BUY Rating since Jun 29, 2025 4/26 4/27E 4/28E 4/29E Cash & cash equivalents Accounts receivable Inventory Ratios & Valuation __________________________________________ Other current assets /26 4/27E 4/28E 4/29E Total current assets 1,890.4 1,856.5 2,010.9 2,121.0 P/E (X) Net PP&E EV/EBITDA (X) Net intangibles 3,423.5 3,240.4 3,048.4 2,861.4 EV/sales (X) 6.6 3.7 3.2 2.7 Total investments FCF yield (%) (1.3) (0.0) 0.9 1.8 Other long-term assets EV/DACF (X) Total assets 5,716.7 5,765.5 5,819.9 5,793.1 CROCI (%) 9.3 6.0 5.4 5.7 ROE (%) ( Accounts payable Net debt/EBITDA (X) 1.2 1.3 0.9 0.4 Short-term debt -- -- -- -- Net debt/equity (%) 8.0 9.6 7.9 4.8 Current lease liabilities Interest cover (X) (17.9) -- -- -- Other current liabilities Inventory days Total current liabilities Receivable days Long-term debt Days payable outstanding Non-current lease liabilities Growth & Margins (%) ______________________________________ Other long-term liabilities /26 4/27E 4/28E 4/29E Total long-term liabilities Total revenue growth Total liabilities 1,316.3 1,319.5 1,348.4 1,331.3 EBITDA growth (120.0) 1, Preferred shares -- 0.0 0.0 0.0 EPS growth Total common equity 4,400.4 4,446.0 4,471.6 4,461.7 DPS growth NM NM NM NM Minority interest…