The reason why this defense industry has 22%
Its prospects require large -scale sales growth.
As designated scientific tensions increased, the defense industry stocks generally attracted more attention from investors. Defense and Aerospace Industry shares have risen by about 6% over the past month and increased by approximately 23%.
However, there are certain defensive industries that soared on Wednesday. Drone manufacturer AEROVIRONMENT (NASDAQ: AVAV).
AEROVIRONMENT stocks rose about 23% on Wednesday and have been estimated by the fourth quarter of import reports. However, the company’s prospects that the stocks were much higher were more than double the fiscal year.
Record revenue and reservation
AEROVIRONMENT creates an unmanned airline system or drone with unmanned ground vehicles and missile systems for US military and other government agencies.
In the fourth -quarter fiscal year, the record revenue of $ 225 million was generated, up 40% from the same quarter compared to the previous year. The estimate is $ 224 million.
The adjusted EBITDA produced $ 66 million and increased 148% year -on -year. The adjusted income rose 274% to $ 1.61 per share and cut estimates of $ 1.40 per share.
During the fiscal year just ended, AEROVIRONMENs earned $ 881 million, up 14% from the previous year. The adjusted EBITDA increased by 15% to $ 140 million compared to the previous year, while adjusted income rose to $ 3.28 to 10% per share.
The company also made a reservation of $ 1.2 billion last year and has a funding back log that has soared $ 770 million to 82%.
Wahid NAWABI, the chairman and CEO of AEROVIRONMENT, said, “Aerovironment was completed in an amazing 4Q, including the import of fiscal year in 2024 after the fiscal year in 2025. As proved to be a very high and major strategic victory, investments that have been made on our multi -generation unemployed system and roaming system products continue to pay money. “
In the future, ridiculous growth
Aerovironment was also closed in branch with Bluehalo’s $ 4.1 billion acquisition. Bluehalo also creates drones and anti -technology, and its function is complementary of Aerovironment. It is expected to be added to the strong growth that the company is looking forward to in fiscal year 2026.
In this fiscal year, AEROVIRONMENT expects sales from $ 19 billion to $ 2 billion, which will be more than doubled last year.
In addition, the adjusted EBITDA will be subject to $ 300 million to $ 330 million, more than twice the $ 146 million in fiscal year. Imports are expected to be in the range of $ 2.80 ~ $ 3.00 per share, except for indifferent assets, other non -cache purchases and equity securities.
NAWABI said, “We believe that through the integrated solutions across all areas of modern war, innovation and domestic manufacturing scale, we are in a position to meet the demands of the world and to lead strong growth and value in the 2026 fiscal year.
The analysts of Raymond James raised $ 25 to $ 225 per share, and the company basically exceeded today to $ 236 per share. Find more price target upgrades in the next few weeks and weeks.
In general, however, according to Investing.com, Raymond James plans to increase the annual income of 15% of AEROVIRONMENs over the next three years. Analysts added that the company could not only respond to the current global threat, but also benefit from “Golden Dome demand.”
AEROVIRONMENT stocks increased by 54%, and the evaluation surged to 124 times. There is a lot of growth in the future, but it is not cheap after today’s surge.
