AeroVironment Stock Drops 13% in 2025 Amid Ukraine Sales Decline and Wildfire Impact

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Highlights

• AeroVironment's Q3 2024 earnings fell short due to dwindling military drone sales to Ukraine and wildfire-related disruptions in Southern California.
• The company reported a net loss of $0.06 per share, missing analyst expectations of a $0.34 profit per share.
• Full-year 2025 revenue guidance was lowered amid ongoing operational challenges.

On Wednesday, AeroVironment (AVAV) shares tumbled 13%, marking their lowest point in a year after the drone manufacturer disclosed a surprising net loss and reduced revenue outlook. The decline stems from decreased international sales, particularly military equipment sales to Ukraine, and the adverse effects of January's wildfires in Southern California.

For the third quarter of fiscal 2025, AeroVironment posted a net loss of $0.06 per share, contrasting sharply with the $0.34 per share profit anticipated by analysts surveyed by Visible Alpha. Revenue also dropped 10% year-over-year to $167.6 million, falling short of projections.

The company attributed the revenue shortfall primarily to a significant reduction in international sales of its Unmanned Systems (UxS) family, especially to Ukraine. Additionally, severe weather conditions including high winds, wildfires, power outages, and operational shutdowns in Southern California further impacted performance.

In response to these challenges, AeroVironment revised its full-year 2025 revenue forecast downward to a range between $780 million and $795 million, below the previous Visible Alpha consensus estimate of $813.5 million.

Investors reacted swiftly, pushing AeroVironment's stock to its lowest level in over a year.

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