AeroVironment with highest demand for switchblade drones to date - 2024 and 2025 are set to be record years!

The drone manufacturer AeroVironment (AVAV) rapidly increased awareness of its Switchblade 300 and Switchblade 600 kamikaze drones, which can be carried in a backpack, during the war in Ukraine. With these "loitering munitions" (Loitering Munition Systems), which can circle autonomously in the target area and identify targets such as tanks, the company has not only been the leading supplier to the US Department of Defense for 10 years, but is now also authorized to sell to over 50 allied countries. This LMS segment generated record sales in the last quarter, more than doubling year-on-year by +140%. The Puma reconnaissance drone, the "gold standard", also generated revenues of over $400 million in the last 12 months. Drones are increasingly being networked to create an autonomous ecosystem.

Despite the records, Switchblade is "just getting started" according to CEO Wahid Nawabi. There could be two years of increased demand and more than 20 countries are currently showing great interest in acquiring it. With its "market-leading production capabilities", AeroVironment is currently said to be uniquely positioned to produce thousands of Switchblade-like drones. A good starting point for the Replicator initiative, which aims to bring thousands of low-cost AI drones to the battlefield by 2025 to offset China's numerical superiority.

The fourth quarter was convincing with an increase in sales of almost 39% and a net profit of $0.63 per share (consensus: $0.33), which was almost twice as high as expected. 2024 is set to be the best year ever with growth rates of 30%. With double-digit growth, 2025 is also likely to set records again. The share could now exceed the all-time high from 2021 with a strong upward gap.

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