AeroVironment Inc (AVAV) CEO Wahid Nawabi said the company expects strong customer demand over the next 12 to 24 months following the defense contractor's fiscal fourth-quarter 2026 earnings beat. The outlook is supported by expanding defense budgets, a $1.2 billion funded backlog, and growing adoption of autonomous drones and directed-energy weapons. AeroVironment's Autonomous Systems segment generated 76% of Q4 revenue, while the company secured new U.S. Army awards and demonstrated its LOCUST laser weapon system aboard the USS George H.W. Bush. Defense contractors are experiencing heightened demand as military budgets prioritize unmanned systems and cost-effective counterdrone technologies.
AeroVironment CEO Projects Strong Demand Over Next 12-24 Months
During AeroVironment's Q4 earnings call, Nawabi said the company is expanding manufacturing capacity and investing in new technologies. "We are sensing strong customer indications that our solutions will receive significant contract wins in the next 12 to 24 months. AV is very well positioned for these unprecedented levels of demand in our served markets," said Nawabi.
Autonomous Systems Generated 76% of Q4 Revenue
Autonomous Systems remained AeroVironment's largest business, accounting for 76% of the company's Q4 revenue. During the quarter, the company secured new U.S. Army awards for its VAPOR 55 CLE helicopter and P550 Group 2 drone, while its JUMP 20 family continued to gain traction through operational deployments and mission demonstrations. Nawabi also highlighted progress across AeroVironment's precision strike business. The company received new orders for Switchblade and Red Dragon systems while introducing the Mayhem 10 launched-effects platform, designed for future Army requirements.
LOCUST Laser Weapon Intercepted Drones During USS George H.W. Bush Demonstration
Nawabi pointed to growing interest in the company's LOCUST laser weapon system, which successfully intercepted drones during a maritime demonstration aboard the USS George H.W. Bush. "At under $10 per shot, the LOCUST flips the cost advantage between offensive and defensive systems and provides the warfighter with an unlimited magazine. We believe our LOCUST directed energy solution is a game-changing capability which is at the very early stages of a large and strong market adoption cycle," said Nawabi.
AeroVironment Reported $1.2 Billion Funded Backlog in Q4
For Q4, the company won $572 million in new contracts. Nawabi said AeroVironment's book-to-bill ratio was 0.9, mainly because strong quarterly revenue was partly offset by delays in receiving some large contract awards. Over the past 12 months, the book-to-bill ratio was 1.4. The company ended the quarter with $1.2 billion in funded backlog and $1.5 billion in unfunded backlog, excluding the SCAR contract after it was canceled in March. The company earned $1.84 per share in Q4, beating analysts' $1.47 estimate, according to Fiscal IA data. Revenue jumped 133% year-on-year to $641.6 million, well above $559.1 million Street view.
Stocktwits Sentiment Shifted to Extremely Bullish
On Stocktwits, retail sentiment around the stock jumped to 'extremely bullish' from 'bearish' territory the previous day with 2,666% increase in message volume in 24 hours. A user said, there's a 1.2 billion backlog. That's what the market is focusing on. Not the soft guidance. Another user said, "$AVAV still way undervalued at this price. 250 is fair value." AVAV stock has declined by over 42% year-to-date. AeroVironment stock traded over 19% higher overnight, heading into Tuesday.
FAQ
What did AeroVironment CEO say about demand over the next 12-24 months?
CEO Wahid Nawabi said the company expects strong customer demand over the next 12 to 24 months, supported by expanding defense budgets, a $1.2 billion funded backlog, and growing adoption of autonomous drones and directed-energy weapons. Nawabi stated the company is sensing strong customer indications for significant contract wins during this period.
How much does AeroVironment's LOCUST laser weapon cost per shot?
AeroVironment's LOCUST laser weapon system costs under $10 per shot, according to CEO Wahid Nawabi. The system successfully intercepted drones during a maritime demonstration aboard the USS George H.W. Bush.
What was AeroVironment's funded backlog in Q4?
AeroVironment ended the quarter with $1.2 billion in funded backlog and $1.5 billion in unfunded backlog, excluding the SCAR contract after it was canceled in March. The company won $572 million in new contracts during Q4.
