AeroVironment, Inc. announced a $30 million investment to expand its Albuquerque manufacturing operations, backed by $5 million from the State of New Mexico and $1 million from the City of Albuquerque under the Local Economic Development Act.
The expansion comes after the company reported Q1 2026 revenue of $454.7 million, a 140 % year‑over‑year increase driven by the BlueHalo acquisition, and a non‑GAAP EPS of $0.32 that missed consensus of $0.343. The miss was largely due to $79.7 million in intangible amortization and other non‑cash purchase‑accounting expenses related to BlueHalo.
Revenue growth was led by the Autonomous Systems segment, which generated $285.3 million, and the Space, Cyber and Directed Energy segment, which produced $169.4 million. The Albuquerque expansion is expected to increase production capacity for Switchblade loitering munitions and other defense products, aligning with the company’s strategy to meet growing demand in these high‑margin segments.
CEO Wahid Nawabi said the expansion “strengthens the domestic defense industrial base, creates high‑quality American jobs, and partners with New Mexico to build a durable innovation hub.” He added that the investment will allow AeroVironment to scale production quickly to meet urgent customer timelines.
AeroVironment maintained its fiscal‑year 2026 guidance, projecting revenue of $1.9 billion to $2.0 billion and non‑GAAP adjusted EBITDA of $300 million to $320 million. The company also expects adjusted gross margins to trend into the mid‑30 % range by year‑end as BlueHalo synergies materialize. Analysts noted that while the company’s GAAP loss reflects acquisition‑related charges, the strong revenue beat and guidance suggest confidence in long‑term growth.
The investment signals AeroVironment’s commitment to expanding its manufacturing footprint and leveraging the BlueHalo acquisition to diversify its product portfolio. By increasing capacity in Albuquerque, the company positions itself to capture additional market share in the U.S. defense sector and support its broader strategy of scaling autonomous systems and space, cyber, and directed‑energy capabilities.
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