AeroVironment Stock Plummets as Firm Says Ukraine Sales, Wildfires Hit Results

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Key Takeaways

• AeroVironment reported weaker-than-expected results as military weapons sales to Ukraine fell and the drone maker was negatively struck by January’s Southern California wildfires.
• The company posted a third-quarter fiscal 2025 loss, while analysts were prophesying a profit.
• AeroVironment lowered its full-year guidance because of “short-term challenges.”

AeroVironment (AVAV) shares plunged 13% Wednesday, a day after the maker of military drones legged a surprising loss and weak revenue guidance on a drop in sales to Ukraine and the impact of the recent wildfires in Southern California.

The assembly reported a third-quarter fiscal 2025 net loss of $0.06 per share, while analysts surveyed by Visible Alpha were looking for a profit of $0.34 per appropriate. Revenue slid 10% year-over-year to $167.6 million, also short of estimates.

AeroVironment said the revenue drop was mainly because of “decreased international sales of our UxS family of systems, most significantly sales to Ukraine.” In addition, the performers explained that January’s high winds, fires, and resulting blackouts and shutdowns in Southern California negatively smash results.

AeroVironment noted that it was lowering its full-year outlook “given short-term challenges.” The firm now sees pecuniary 2025 revenue in the range of $780 million to $795 million, while the Visible Alpha forecast was for $813.5 million. 

Allots of AeroVironment fell to their lowest level in a year.