AeroVironment, Inc. Jefferies Global Industrials Conference 2026

Should be this every day.

There you go. Little cooler.

You. Sorry. Thank you, Sheila.

Thank you, Jefferies, for having us. Obviously, we had a fantastic quarter. Not even a good quarter, but a fantastic quarter. There's three main areas that we were focused on, making sure that what we expected in terms of our plans, that we deliver financially, which we did, and we met or exceeded pretty much almost all of our metrics financially. The second one was to make sure that we make strategic progress on the milestones that takes the company to the long-term plans that we unveiled in June, which has a pretty solid, not aggressive, but realistic organic growth, both in terms of top and bottom lines. Then third was also that we're really scaling a whole bunch of different products and franchises to get it ready for significant growth over the next four or five years.

Because we're in an inflection point in expanding capacity in several of our facilities, and I think we achieved those goals and surpassed some of those goals based on our own plans as well. Overall, a great quarter. We're in a very good position. I say this not lightly but very seriously, that decade and a half of time that Sean Woodward and I have been with the company, the prospects for growth and value creation has never been better. We've got lots and lots of momentum behind us. We're in the right categories. Regardless of what happens to the budgets within the U.S. DOD or internationally, we're in the right categories with the right solutions that's been battle tested, validated, and we've got the production capacity, and we're scaling, and we can deliver now, and they're very affordable.

Those four or five ingredients, just ideal scenario for growth and focus and for the Department and our allies.

Sure. Yeah, 86% quarter one visibility is a fantastic start to the year. Last year, looking at our visibility at that same time, we were at 82%. We ended the year pretty strong last year. In the prior year, we were at 80% visibility. So sitting at 86% gives us very strong confidence that we're going to be able to execute to our fiscal targets that we have. In terms of the remaining 14%, we have multiple different opportunities that we're tracking. Pretty much across our portfolio, there's multiple different opportunities coming through that we are tracking closely, and obviously, we'll announce and provide that information as additional awards come through.

Sure. Yeah, you're right. We continued with our 45/55 revenue split first half, second half, and one third, two thirds on the EBITDA. We see the second half of the year really being driven by higher sales volume, a little bit more favorable sales mix. Some of these key awards that we just announced, including the E-HEL award, and an international directed energy award. Those will ramp up from a revenue standpoint in the second half of the year, which has a little bit better margin profile than we've had in that segment too, in the SCDE segment. So we should see some improvements in the second half of the year driving the EBITDA, the two thirds in the second half of the year. In terms of the second quarter, we're still maintaining a 45% revenue for the first half of the year and one third on the EBITDA.

Little bit of a sales mix and some ramp-up of new products coming to the market, which will have a little bit of pressure on our EBITDA, and some increased investments that we continue to plan to make this fiscal year will align to those targets.