AeroVironment Stands By FY2027 Revenue Outlook as It Expands LOCUST and Titan Production

AeroVironment (NASDAQ: AVAV) has reaffirmed its fiscal year 2027 revenue guidance of $2.125 billion to $2.225 billion, according to a recent company update, even as it works to ramp up manufacturing capacity for its LOCUST and Titan product lines.

The reaffirmation signals that the defense technology company is maintaining its multi-year financial roadmap while simultaneously investing in production scale-up. LOCUST and Titan represent key programs in AeroVironment’s portfolio of autonomous systems, and expanding capacity for both is central to the company’s ability to meet anticipated demand from U.S. government agencies and international customers.

Market reaction

Shares of AeroVironment were trading at $140.80 in recent activity, down 6.24% from the previous close of $150.17. The company’s market capitalization stands at approximately $7.2 billion. Classified in the Industrials sector within the Aerospace & Defense industry, AeroVironment has been a prominent name in unmanned systems, including small drones and loitering munitions that have drawn increased attention amid rising global defense spending.

The day’s decline came despite the reiterated outlook, suggesting broader sector dynamics or positioning may be at play alongside the guidance news itself.

Scaling capacity

Defense contractors across the industry have faced pressure to demonstrate they can move from prototype and low-rate production to higher-volume manufacturing. AeroVironment’s emphasis on scaling LOCUST and Titan capacity aligns with that trend, as Pentagon procurement priorities have shifted toward attritable autonomous systems and counter-drone technologies.

The company operates through two segments focused on autonomous robotic systems and related services for government and commercial customers in the United States and abroad. Reaching the upper end of its FY2027 revenue range would represent a substantial step up in scale, underscoring why production capacity expansion is a focal point of the company’s communications.

What to watch

• AeroVironment’s next quarterly earnings report and any updates to near-term guidance
• Milestones in LOCUST and Titan production ramp-up, including delivery volumes
• New contract announcements or task orders from U.S. defense agencies
• International demand signals for autonomous systems as allied nations expand defense budgets

Source: original release