A pure play on drones, AeroVironment provides autonomous military vehicles (both ground-based and aerial) to the U.S. government and more than 55 other countries. The company is also focused on non-military applications.
AeroVironment is developing its high-altitude, solar-powered drone, Sunglider, to help provide broadband access. The company also partnered with NASA on Ingenuity, which NASA lauds as "the first aircraft to achieve powered, controlled flight on another planet."
In an effort to further expand its autonomous vehicle offerings, AeroVironment acquired BlueHalo in May 2025. Management expects the acquisition to immediately contribute to revenue, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and non-GAAP (adjusted) earnings per share in the first full fiscal year after the deal closes. Besides maritime drones, BlueHalo designs a variety of autonomous vehicles that provide militaries with sophisticated AI-based capabilities.
While it may be smaller than some of its peers, AeroVironment is off to a strong start in fiscal 2026, booking sales of $454.7 million for the first quarter, which represents year-over-year growth of 140%. Plus, the company recognized improved profitability. Adjusted EBITDA for the first quarter of fiscal 2026 was $56.6 million compared to $37.2 million for the same period last year.
Management is confident about sustained growth in the remainder of fiscal 2026. In addition to guiding for fiscal 2026 revenue of $1.9 billion to $2 billion, the company projects adjusted EBITDA of $300 million to $320 million. For context, AeroVironment reported sales and adjusted EBITDA of $820.6 million and $146.4 million, respectively.
People who count themselves as fans of Cathie Wood will also be attracted to AeroVironment since the stock is a major holding in the ARK Autonomous Technology & Robotics ETF (ARKQ -2.54%) and the ARK Space Exploration & Innovation ETF (ARKX -1.87%).