AeroVironment Stock Is Sliding After Hours: Here's Why

AeroVironment Inc AVAV shares are falling in Monday’s after-hours session after the company announced a pair of proposed public offerings.

What Happened: AeroVironment said it plans to offer $750 million of shares of common stock and $600 million of convertible senior notes due 2030 in proposed underwritten public offerings.

The company expects to grant the underwriters of the offerings a 30-day option to purchase up to an additional $112.5 million of common stock and up to an additional $90 million of convertible notes.

AeroVironment intends to use the net proceeds to repay debt under its term loan and outstanding borrowings under its revolving credit facility. The company plans to use any remaining proceeds to increase manufacturing capacity.

AeroVironment reported fourth-quarter earnings for fiscal 2025 last week. The company said in the release that it had approximately $40.86 million in cash and cash equivalents as of April 30.

AVAV Price Action: AeroVironment shares were down 6.65% in after-hours, trading at $266 at the time of publication Monday, according to Benzinga Pro. AeroVironment stock is up approximately 85% since the start of the year.

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