AeroVironment : Q1 Fiscal 2025 Earnings Presentation

First Quarter

Fiscal Year 2025

Earnings Presentation

September 4, 2024

First Quarter Fiscal Year 2025 Key Messages

First-quarter revenue of $189 million, a 24% increase over Q1 FY24

Loitering Munition Systems segment continues to lead company growth with a first-quarterrevenue record of $52 million

Robust pipeline converting to backlog evidenced by AV's recent Army IDIQ award with a nearly $1B ceiling

Given strong execution and growing pipeline we are reiterating our previously disclosed fiscal year 2025 guidance

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| © 2024 AeroVironment, Inc.

First Quarter Results Fiscal Year 2025

		Year-Over-
Metric	Q1 FY25	Year Change	Notes
Revenue	$189.5 m	+24%	Overall increase driven by higher product sales in UxS and LMS
segments partially offset by a decrease in MW revenue.
GAAP Gross Margin	$81.5 m	+24%	Increase driven by favorable sales volume.
			In-line with same quarter last year as higher gross margins were
Adjusted EBITDA2	$37.2 m	--%	offset by higher SG&A expenses and increased investments in
			R&D.
			Lower than last year as higher gross margins were more than
Non-GAAP EPS (diluted)1	$0.89	-11%	offset by higher SG&A expenses, and increased investments in
			R&D.
Funded Backlog	$372.9 m	-31%	Q1 backlog lower due to contract award timing3.

1. Q1 GAAP EPS was $0.75 per diluted share. Refer to Reconciliation of Non-GAAP Earnings Per Diluted Share on Appendix A
2. Q1 GAAP Net income was $21.2M. Refer to Adjusted EBITDA reconciliation on Appendix D.

3 Backlog expected to increase in future quarters in FY25

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| © 2024 AeroVironment, Inc.

Revenue Mix by Segment and Type

QUARTERLY REVENUE BY SEGMENT

	$250.0
				$197.0
	$200.0		$180.8	$186.6	$189.5
millions	$150.0	$152.3
in	$100.0
Revenue	$50.0
	$-
	Q1	Q2	Q3	Q4	Q1
				FY24	FY24	FY24	FY24	FY25
			MW	$23.2	$17.8	$15.6	$19.5	$17.5
			LMS	$30.9	$30.2	$57.7	$73.8	$52.0
			UxS	$98.2	$132.8	$113.3	$103.7	$120.0

			Revenue
		MW	Quarterly
		LMS	Percentage
	acklog
b	of
	UxS

QUARTERLY REVENUE BY TYPE

100%																60%
22%		19%		16%	16%		16%
90%
															50%
80%
70%		43%											43%
		42%								40%	Margin
60%										38%
							36%
50%																30%	Gross
			81%		84%	84%	84%
40%	78%				20%
30%
20%																10%
10%
0%																0%
	Q1		Q2	Q3		Q4		Q1
		FY24		FY24	FY24		FY24		FY25
Product Revenue			Service Revenue				GAAP Gross Margin

UxS: Uncrewed Systems | LMS: Loitering Munitions Systems | MW: MacCready Works

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| © 2024 AeroVironment, Inc.

Adjusted Profitability by Type and Non-GAAP EPS

PERCENTAGE ADJUSTED GROSS MARGIN1

60%
49%			47%														48%
50%
				45%								38%40%		41%	38%
40%					43%					45%
											40%
												38%
30%		28%		28%						29%
20%
10%
0%
Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
			Adj Product Margin					Adj Service Margin					Total Adj Gross Margin

NON-GAAP DILUTED EPS2

$1.00
$1.00
	$0.89
$0.80
$0.60
$0.40
$0.20
$-
Q1 FY24	Q1 FY25

1 Q1 GAAP Product Margin of 46% and Service Margin of 25%. Refer to GAAP to NON-GAAP reconciliation on Appendix C. | 2 Refer to Reconciliation of Non-GAAP Diluted Earnings Per Share on Appendix A.

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| © 2024 AeroVironment, Inc.

Maintaining Guidance: Fiscal 2025 Outlook

			EXPECTED % CHANGE
AS OF 09/4/2024	FY24 RESULTS	FY25 GUIDANCE	(TO MIDPOINT)
Revenue	$717 million	$790 million - $820 million	12%
Net Income	$60 million	$74 million - $83 million4	31%
Adjusted EBITDA	$128 million2	$143 million-$153 million4	16%
Earnings	$2.18	$2.61 - $2.92	27%
Per Share (diluted)
Non-GAAP Earnings	$2.993	$3.18 - $3.49 1	11%
Per Share (diluted)

Expect R&D Expenses between 12%-13% of Revenues in FY25.

1. Refer to Reconciliation of Fiscal Year 2025 Non-GAAP Diluted Earnings Per Share Expectations on Appendix B.
2. Refer to Adjusted EBITDA Reconciliation on Appendix D.
3. Refer to Reconciliation of Fiscal Year 2024 Non-GAAP Diluted Earnings Per Share on Appendix F.
4. Refer to Reconciliation of Non-GAAP Fiscal Year 2025 Adjusted EBITDA Expectations on Appendix E.

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| © 2024 AeroVironment, Inc.

Visibility for FY25

REVENUE (MILLIONS)

$900
$800
$700								80% visibility 1
					$41.1
$600
		$99.0
$500
	55% visibility 1
$400			$29.9
		$52.4	$317.3
$300
$200			$361.2
$100								$189.5
$-
		Q4 FY24	Q1 FY25 (as of 9/3/24)	Q2 FY25		Q3 FY25

1 Based on midpoint of guidance range of $790-$820 million

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Revenue Guidance Range: $790 to $820 million

Revenue Anticipated This FY from Unfunded Backlog

Revenue Anticipated This FY from Qtr-To-Date Bookings

Revenue Anticipated This FY from Funded Backlog

Revenue Year-To-Date

Company visibility (as of September 3, 2024) supports revenue guidance range

Financial Tables

APPENDIX A - RECONCILIATION OF NON-GAAP EARNINGS PER DILUTED SHARE (UNAUDITED)

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APPENDIX B - RECONCILIATION OF FISCAL YEAR 2025 NON-GAAP DILUTED EARNINGS PER SHARE EXPECTATIONS (UNAUDITED)

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Slide 11 | © 2024 AeroVironment, Inc.