AeroVironment Inc Segments Disclosure
23. Segments
The Company’s reportable segments are as follows:
Uncrewed Systems (“UxS”)—The UxS segment focuses primarily on small UAS products designed to operate reliably at lower altitudes in a wide range of environmental conditions, providing a vantage point from which to collect and deliver valuable information as well as related support including training, spare and accessory parts, product repair, product replacement, maintenance and upgrades; medium UAS products designed to operate reliably at medium altitudes with longer range while carrying larger payloads including airborne platforms, payloads and payload integration, and ground support equipment and other items and services related generally to uncrewed aircraft systems including ISR services; UGV products designed to help responders remove, contain or neutralize these hazards in situations where improvised explosive devices, caustic chemicals, nuclear, radiological or biological hazards or violent individuals represent significant danger to humans; and AI-enabled common control and communication solutions that allow any uncrewed system to be controlled from a common user interface while aggregating data from multiple platforms to provide real time intelligence.
Loitering Munitions Systems (“LMS”)—The LMS segment focuses primarily on tube-launched aircraft that deploy with the push of a button, fly at higher speeds than small UAS products, and perform either effects delivery or reconnaissance missions, and related support services including training, spare parts, product repair, and product replacement. The LMS segment also includes customer-funded research and development programs.
MacCready Works (“MW”)— The MW segment focuses on customer-funded research and development in the areas of HAPS, robotics, sensors, software analytics, data intelligence and connectivity. This segment contains the Company’s center of excellence for the development of machine learning, object identification and autonomy solutions and also seeks to identify new products, services and businesses for the Company.
The accounting policies of the segments are the same as those described in Note 1–Organization and Significant Accounting Policies. The operating segments do not make sales to each other. The following table (in thousands) sets forth segment revenue and segment adjusted gross margin for the periods indicated. Segment adjusted gross margin is defined as gross margin before intangible amortization and amortization of other purchase accounting adjustments related to increasing the carrying value of certain assets to fair value. Segment adjusted gross margin is the measure of profitability used by the CODM for purposes of making decisions about allocating resources to the segments and assessing performance.
Year Ended April 30, 2025 | ||||||||||||
| UxS |
| LMS |
| MW |
| Total | |||||
Revenue: | ||||||||||||
Product sales | $ | 352,932 | $ | 333,506 | $ | 6,284 | $ | 692,722 | ||||
Contract services | 28,846 | 18,471 | 80,588 | 127,905 | ||||||||
381,778 | 351,977 | 86,872 | 820,627 | |||||||||
Less: Cost of sales | 213,133 | 223,422 | 65,436 | 501,991 | ||||||||
Add: Intangible amortization included in cost of sales | 18,480 | — | 925 | 19,405 | ||||||||
Segment adjusted gross margin | $ | 187,125 | $ | 128,555 | $ | 22,361 | $ | 338,041 | ||||
Depreciation and amortization | $ | 49,942 | $ | 3,806 | $ | 5,609 | $ | 59,357 | ||||
Year Ended April 30, 2024 | ||||||||||||
| UxS |
| LMS |
| MW |
| Total | |||||
Revenue: | ||||||||||||
Product sales | $ | 415,074 | $ | 168,863 | $ | 1,834 | $ | 585,771 | ||||
Contract services | 32,932 | 23,724 | 74,293 | 130,949 | ||||||||
448,006 | 192,587 | 76,127 | 716,720 | |||||||||
Less: Cost of sales | 249,763 | 124,363 | 58,663 | 432,789 | ||||||||
Add: Intangible amortization included in cost of sales | 12,280 | — | 1,268 | 13,548 | ||||||||
Segment adjusted gross margin | $ | 210,523 | $ | 68,224 | $ | 18,732 | $ | 297,479 | ||||
Depreciation and amortization | $ | 27,595 | $ | 2,808 | $ | 5,346 | $ | 35,749 | ||||
Year Ended April 30, 2023 | ||||||||||||
| UxS |
| LMS |
| MW |
| Total | |||||
Revenue: | ||||||||||||
Product sales | $ | 268,021 | $ | 84,686 | $ | 355 | $ | 353,062 | ||||
Contract services | 75,889 | 35,938 | 75,647 | 187,474 | ||||||||
343,910 | 120,624 | 76,002 | 540,536 | |||||||||
Less: Cost of sales | 231,960 | 77,888 | 57,174 | 367,022 | ||||||||
Add: Intangible amortization included in cost of sales | 12,731 | — | 1,275 | 14,006 | ||||||||
Segment adjusted gross margin | $ | 124,681 | $ | 42,736 | $ | 20,103 | $ | 187,520 | ||||
Depreciation and amortization | $ | 249,925 | $ | 2,788 | $ | 3,303 | $ | 256,016 | ||||
The following table (in thousands) provides a reconciliation from segment adjusted gross margin to income (loss) before taxes:
Year Ended | Year Ended | Year Ended | |||||||
April 30, |
| April 30, | April 30, | ||||||
2025 | 2024 | 2023 | |||||||
Segment adjusted gross margin | $ | 338,041 | $ | 297,479 | $ | 187,520 | |||
Intangible amortization included in cost of sales | 19,405 | 13,548 | 14,006 | ||||||
Selling, general and administrative | 158,753 | 114,420 | 131,905 | ||||||
Research and development | 100,729 | 97,687 | 64,255 | ||||||
Impairment of goodwill | 18,359 | — | 156,017 | ||||||
Interest expense, net | (2,188) | (4,220) | (9,368) | ||||||
Other income (expense), net | 1,057 | (4,373) | (346) | ||||||
Income (loss) before income taxes | $ | 39,664 | $ | 63,231 | $ | (188,377) | |||
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.
| UxS |
| LMS |
| MW |
| Corporate | Total | |||||||
As of April 30, 2025 | $ | 511,505 | $ | 313,046 | $ | 47,979 | $ | 248,037 | $ | 1,120,567 | |||||
As of April 30, 2024 | $ | 590,619 | $ | 165,413 | $ | 50,767 | $ | 209,061 | $ | 1,015,860 | |||||
Capital expenditures are summarized in the table below (in thousands):
| UxS |
| LMS |
| MW |
| Corporate | Total | |||||||
Year Ended April 30, 2025 | $ | 7,156 | $ | 6,717 | $ | 7,339 | $ | 1,604 | $ | 22,816 | |||||
Year Ended April 30, 2024 | $ | 9,630 | $ | 5,078 | $ | 4,521 | $ | 3,754 | $ | 22,983 | |||||
Year Ended April 30, 2023 | $ | 8,191 | $ | 2,700 | $ | 3,045 | $ | 932 | $ | 14,868 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 25, 2025 | Showing above |
| 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.