AVAV

AeroVironment designs and manufactures unmanned aircraft systems and tactical missile systems serving defense, government, and commercial customers requiring intelligence, surveillance, and reconnaissance capabilities plus precision strike weapons. Headquartered in Simi Valley, California, AeroVironment pioneered small unmanned aerial vehicle technology creating hand-launched reconnaissance drones used extensively by U.S. military forces and allied nations for tactical battlefield awareness. The company's product portfolio includes Raven, Puma, and Wasp small UAS platforms providing squad-level and company-level reconnaissance; Switchblade loitering munitions combining surveillance and precision strike capabilities enabling operators to identify and engage targets from safe distances; and larger Quantix and Puma systems serving commercial agriculture applications providing crop monitoring and analytics. AeroVironment generates approximately 85-90% of revenues from defense customers including U.S. Army, Marine Corps, Special Operations Command, and international allied militaries, with remaining revenues from commercial customers primarily in precision agriculture. The company reported annual revenues exceeding $500 million with strong profitability margins of 15-20% reflecting premium pricing for proven defense systems and intellectual property advantages protecting market positions. AeroVironment benefits from increasing global military demand for small unmanned systems providing tactical advantages in modern warfare emphasizing distributed operations, counter-terrorism, and near-peer conflicts where small drones offer asymmetric capabilities. Recent strategic developments include expanding Switchblade production responding to urgent operational needs demonstrated during conflicts including Ukraine where loitering munitions proved highly effective against armored vehicles and fortified positions. The company invests heavily in research developing next-generation systems including larger tactical UAS with extended endurance, artificial intelligence enabling autonomous operations, and electronic warfare capabilities countering enemy air defenses. AeroVironment faces competition from larger defense contractors including Northrop Grumman, Lockheed Martin, and Kratos Defense developing competing unmanned systems, plus emerging threats from commercial drone manufacturers adapting civilian technologies for military applications at lower costs.