AeroVironment Inc. (AVAV) reported record fourth quarter revenue of $275.1 million for fiscal year 2025, representing a 40% increase year-over-year, and fiscal year revenue of $820.6 million, up 14% from the previous year. The company posted fourth quarter net income of $16.7 million and fiscal year net income of $43.6 million. Adjusted earnings per share (EPS) for the quarter were $1.61, surpassing the consensus estimate of $1.38, while GAAP EPS was $0.59. The company’s adjusted EBITDA rose 178% year-over-year to $61.6 million. AeroVironment's funded backlog increased 82% to $726.6 million, with the unfunded backlog growing 472% to $774.6 million. Bookings for fiscal year 2025 reached a record $1.2 billion, driven by strong demand for uncrewed and loitering munitions systems. For fiscal year 2026, AeroVironment provided guidance expecting EPS between $2.80 and $3.00 and revenue between $1.9 billion and $2.0 billion. Following the earnings release, shares rose over 6% pre-market and gained 23% after being highlighted on CNBC, where the company was noted for its counter-drone laser technology and potential benefits from NATO defense budgets. Raymond James reiterated a strong buy rating on AeroVironment and raised its price target from $200 to $225, citing synergies from the BlueHalo acquisition and alignment with defense demand trends.