Kevin McDonnell, Executive Vice President and Chief Financial Officer of AeroVironment, Inc. (AVAV), will retire from the company effective July 31, 2026. The retirement announcement was issued on February 23, 2026, and McDonnell has served as CFO since 2020, guiding the firm through a period of accelerated growth and the integration of the BlueHalo acquisition.
McDonnell’s tenure has been marked by a disciplined approach to capital allocation and a focus on strengthening the balance sheet. “Kevin has played an important role in strengthening AV’s financial performance, driving improved profitability during a period of revenue, bookings and backlog growth,” said Chairman, President and CEO Wahid Nawabi. McDonnell will remain in a non‑officer capacity to support the transition until his retirement date.
AVAV reported record first‑quarter revenue of $454.7 million for the fiscal quarter ended August 2, 2025, a 140% year‑over‑year increase from $189.5 million in the same quarter of fiscal 2025. The company’s non‑GAAP earnings per diluted share were $0.32, compared with $0.75 in the prior year, reflecting a GAAP loss per diluted share of $(1.44). The decline in earnings is largely attributable to $79.7 million of intangible amortization and other purchase‑accounting expenses associated with the BlueHalo acquisition, which also contributed $235.2 million of revenue in the quarter.
The BlueHalo acquisition, completed on May 1, 2025, has expanded AVAV’s capabilities into space, cyber and directed‑energy markets. While the acquisition has driven significant revenue growth, it has also introduced margin compression through the amortization of intangible assets and the integration of new operating costs. Management notes that the company is actively managing these costs while pursuing higher‑margin service revenue to offset the impact of the acquisition on gross margins.
The market has responded positively to the CFO transition, citing the deployment of the LOCUST counter‑drone laser system at a U.S. airport and recent analyst upgrades. Analysts have highlighted the company’s strong backlog and the strategic value of the BlueHalo portfolio as key drivers of future growth.
McDonnell will continue to support the transition through the end of the year, and AVAV is actively searching for a successor to assume the CFO role after his retirement.
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