AeroVironment Inc Segments Disclosure
21. Segments
The Company identifies two reportable segments, AxS and SCDE.
The accounting policies of the segments are the same as those described in Note 1—Organization and Significant Accounting Policies. The operating segments sales to each other are eliminated. Effective May 1, 2025, segment adjusted EBITDA is the measure of profitability used by the CODM for purposes of making decisions about allocating resources to the segments and assessing performance. Segment adjusted EBITDA is defined as segment income (loss) from operations before depreciation and amortization and adjusted for the impact of certain other non-cash items, including goodwill impairment, amortization of implementation of cloud computing arrangements, stock-based compensation, other purchase accounting adjustments, and cash items including acquisition related expenses and certain one-time non-operating expense or income such as legal expense.
Year Ended April 30, 2026 | |||||||||
| AxS | | SCDE | | Total | ||||
Revenue: | |||||||||
Product sales | $ | 1,142,762 | $ | 272,587 | $ | 1,415,349 | |||
Contract services | 215,315 | 346,181 | 561,496 | ||||||
1,358,077 | 618,768 | 1,976,845 | |||||||
Less: | |||||||||
Cost of sales less intangible amortization and other purchase accounting adjustments | 837,367 | 546,127 | 1,383,494 | ||||||
Intangible amortization included in cost of sales | 48,901 | 43,808 | 92,709 | ||||||
SG&A less intangible amortization | 208,673 | 104,147 | 312,820 | ||||||
Intangible amortization included in SG&A | 41,688 | 88,743 | 130,431 | ||||||
Research and development | 113,063 | 14,615 | 127,678 | ||||||
Impairment of goodwill | — | 240,708 | 240,708 | ||||||
Other expense (income) | (7,547) | (3,439) | (10,986) | ||||||
Add: | |||||||||
Depreciation | 28,848 | 13,049 | 41,897 | ||||||
Amortization | 90,589 | 132,551 | 223,140 | ||||||
Impairment of goodwill | — | 240,708 | 240,708 | ||||||
Acquisition-related expenses | 29,782 | 18,388 | 48,170 | ||||||
Amortization of cloud computing arrangement implementation | 5,522 | 14 | 5,536 | ||||||
Equity securities investments activity, net | (9,941) | (1,779) | (11,720) | ||||||
Stock-based compensation | 27,920 | 10,414 | 38,334 | ||||||
Segment adjusted EBITDA | $ | 288,652 | $ | (2,596) | $ | 286,056 | |||
Year Ended April 30, 2025 | |||||||||
| AxS | | SCDE | | Total | ||||
Revenue: | |||||||||
Product sales | $ | 692,722 | $ | — | $ | 692,722 | |||
Contract services | 127,905 | — | 127,905 | ||||||
820,627 | — | 820,627 | |||||||
Less: | |||||||||
Cost of sales less intangible amortization and other purchase accounting adjustments | 482,586 | — | 482,586 | ||||||
Intangible amortization included in cost of sales | 19,405 | — | 19,405 | ||||||
SG&A less intangible amortization | 154,752 | — | 154,752 | ||||||
Intangible amortization included in SG&A | 4,001 | — | 4,001 | ||||||
Research and development | 100,729 | — | 100,729 | ||||||
Impairment of goodwill | 18,359 | — | 18,359 | ||||||
Other expense (income) | (1,057) | — | (1,057) | ||||||
Add: | |||||||||
Depreciation | 17,592 | — | 17,592 | ||||||
Amortization | 23,406 | — | 23,406 | ||||||
Impairment of goodwill | 18,359 | — | 18,359 | ||||||
Acquisition-related expenses | 19,290 | — | 19,290 | ||||||
Amortization of cloud computing arrangement implementation | 2,541 | — | 2,541 | ||||||
Equity securities investments activity, net | (177) | — | (177) | ||||||
Legal expense | 2,100 | — | 2,100 | ||||||
Stock-based compensation | 21,461 | — | 21,461 | ||||||
Segment adjusted EBITDA | $ | 146,424 | $ | — | $ | 146,424 | |||
Year Ended April 30, 2024 | |||||||||
| AxS | | SCDE | | Total | ||||
Revenue: | |||||||||
Product sales | $ | 585,771 | $ | — | $ | 585,771 | |||
Contract services | 130,949 | — | 130,949 | ||||||
716,720 | — | 716,720 | |||||||
Less: | |||||||||
Cost of sales less intangible amortization and other purchase accounting adjustments | 419,241 | — | 419,241 | ||||||
Intangible amortization included in cost of sales | 13,548 | — | 13,548 | ||||||
SG&A less intangible amortization | 109,410 | — | 109,410 | ||||||
Intangible amortization included in SG&A | 5,010 | — | 5,010 | ||||||
Research and development | 97,687 | — | 97,687 | ||||||
Other expense (income) | 4,373 | — | 4,373 | ||||||
Add: | |||||||||
Depreciation | 17,191 | — | 17,191 | ||||||
Amortization | 18,558 | — | 18,558 | ||||||
Acquisition-related expenses | 2,095 | — | 2,095 | ||||||
Amortization of cloud computing arrangement implementation | 1,444 | — | 1,444 | ||||||
Equity securities investments activity, net | 3,945 | — | 3,945 | ||||||
Stock-based compensation | 17,069 | — | 17,069 | ||||||
Segment adjusted EBITDA | $ | 127,753 | $ | — | $ | 127,753 | |||
The following table (in thousands) provides a reconciliation from segment adjusted EBITDA to income before income taxes:
Year Ended | |||||||||
April 30, | | April 30, | April 30, | ||||||
2026 | 2025 | 2024 | |||||||
Segment adjusted EBITDA | $ | 286,056 | $ | 146,424 | $ | 127,753 | |||
Depreciation and amortization | (265,037) | (40,998) | (35,749) | ||||||
Impairment of goodwill | (240,708) | (18,359) | — | ||||||
Acquisition-related expenses | (48,170) | (19,290) | (2,095) | ||||||
Amortization of cloud computing arrangement implementation | (5,536) | (2,541) | (1,444) | ||||||
Legal expense | — | (2,100) | — | ||||||
Stock-based compensation | (38,334) | (21,461) | (17,069) | ||||||
Equity securities investments activity, net | 11,720 | 177 | (3,945) | ||||||
Interest expense, net | (5,613) | (2,188) | (4,220) | ||||||
(Loss) income before income taxes | $ | (305,622) | $ | 39,664 | $ | 63,231 | |||
Segment assets are summarized in the table below. Corporate assets primarily consist of cash and cash equivalents, prepaid expenses and other current assets, long-term investments, property and equipment, net, operating lease right-of-use assets, deferred income taxes and other assets managed centrally on behalf of the business segments.
| AxS | | SCDE | | Corporate | Total | ||||||
As of April 30, 2026 | $ | 2,604,511 | $ | 2,032,663 | $ | 1,079,568 | $ | 5,716,742 | ||||
As of April 30, 2025 | $ | 872,530 | $ | — | $ | 248,037 | $ | 1,120,567 | ||||
Capital expenditures are summarized in the table below (in thousands):
| AxS | | SCDE | | Corporate | Total | ||||||
Year Ended April 30, 2026 | $ | 50,780 | $ | 29,380 | $ | 6,058 | $ | 86,218 | ||||
Year Ended April 30, 2025 | $ | 21,212 | $ | — | $ | 1,604 | $ | 22,816 | ||||
Year Ended April 30, 2024 | $ | 19,229 | $ | — | $ | 3,754 | $ | 22,983 | ||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Jun 29, 2026 | Showing above |
| 2025 | Jun 25, 2025 | |
| 2024 | Jun 27, 2024 | |
| 2023 | Jun 28, 2023 | |
| 2022 | Jun 29, 2022 | |
| 2021 | Jun 29, 2021 | |
| 2019 | Jun 26, 2019 | |
| 2017 | Jun 28, 2017 | |
| 2016 | Jun 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.