The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Greg Konrad - Jefferies Group LLC - Analyst
: Good evening. Can you just -- you teased fiscal year '26 a bit in the script. I mean if we look at guidance, it implies an exit run rate of sales of like
$240 million in Q4. How are you thinking about the bridge to fiscal year '26 given the backlog and some of your commentary around Ukraine?
Question: Greg Konrad - Jefferies Group LLC - Analyst
: And then maybe just as a follow-up to stick with BlueHalo, pretty impressive forecast in the S-4. It seems like there's some acceleration for that
business next year. Without maybe getting into specifics, just thinking about the deal closing in Q2, what are some of the areas that you're most
excited for in terms of BlueHalo growth into next year after the deal closes?
Question: Peter Arment - Baird - Analyst
: Wahid, could you give us a little more color on the work stoppage? You mentioned it's four FMS contracts. What were the reasons for that? And is
this something that is going to linger into Q4 or beyond?
Question: Peter Arment - Baird - Analyst
: Okay. And then just as a follow-up, you mentioned the $500 million-plus kind of revenue kind of run rate opportunity in LMS. But you talked about
'26 being basically on a run rate path to get close to $1 billion, which implies that the UnCrewed segment would be kind of seeing a significant
step-up in volume.
I mean, I know this is the trough this quarter at $64 million. You're expecting the JUMP 20 volumes to pick up in the fourth quarter. But it implies
basically that there's going to be a pretty healthy step-up in uncrewed. Could you maybe talk about the demand environment that gives us more
confidence around the uncrewed backdrop?
Question: Louie Dipalma - William Blair - Analyst
: Wahid and Kevin, you indicated that you are confident in AV stand-alone generating close to $1 billion in revenue for fiscal 2026. I was wondering,
are you also confident in BlueHalo generating close to $1 billion for fiscal 2026? I think there was that projection in the S-4 filing that just came out.
But I was wondering just how current are the projections from that S-4.
Question: Louie Dipalma - William Blair - Analyst
: Great. And on the last quarter earnings call, you mentioned that you were close to closing two different JUMP 20 orders, and you formally announced
one of the orders. Did you close the second order? Or is that still pending?
Question: Louie Dipalma - William Blair - Analyst
: Great. And one final one. Regarding the Army stop work order, you indicated that it was for foreign military sales. And I believe that it's for multiple
countries. But does this relate to multiple countries using their own funds to buy either the Switchblade or the Puma or one of your other systems,
and the US Army is blocking countries or allies from using their own funds to buy AeroVironment systems?
Question: Andre Madrid - BTIG LLC - Analyst
: On the topic of international sales, you mentioned last quarter, there were an incremental six nations that were in different phases of the acquisition
process. Can you maybe give an update on those and how negotiations are trending?
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MARCH 04, 2025 / 9:30PM, AVAV.OQ - Q3 2025 AeroVironment Inc Earnings Call
Question: Andre Madrid - BTIG LLC - Analyst
: Got it. And then I guess maybe if I pivot away from that, I mean, kind of revisiting the wildfires, could you maybe quantify exactly how much of the
negative impact in 3Q was attributable to the South California fires?
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