AeroVironment Inc 8-K

What Happened

• AeroVironment, Inc. announced that Executive Vice President and Chief Financial Officer Kevin McDonnell notified the company on February 18, 2026 that he will retire effective July 31, 2026. On February 20, 2026 the company and Mr. McDonnell executed a Retirement Agreement governing the transition.
• Mr. McDonnell will remain CFO until the earlier of (a) the start date of a new CFO hired by the company, or (b) the July 31, 2026 retirement date. If a new CFO is hired before July 31, Mr. McDonnell will continue through the Retirement Date in a non-officer role to support an orderly transition.

Key Details

• Annual bonus: Mr. McDonnell will receive his fiscal 2026 Short Term Incentive Plan bonus at target — $455,420 (pre-withholding), paid with other fiscal 2026 employee bonuses.
• Compensation through retirement: He will be paid his current base salary and benefits through the Retirement Date.
• Health coverage: On the Retirement Date the company will pay an amount equal to the after-tax cost of five months of COBRA premiums (medical, dental, hospitalization, prescription and vision) in effect as of the agreement date.
• Equity and obligations: Existing equity awards remain outstanding and will continue to vest under their current terms; Mr. McDonnell agreed to execute a general release and reaffirmed confidentiality and other existing obligations.

Why It Matters

• Leadership continuity: The agreement keeps the current CFO in place until a successor starts (or through July 31), which reduces immediate disruption to financial leadership and reporting during the transition.
• Costs and obligations: The company disclosed specific transition-related costs (bonus, salary, COBRA payments) and that equity vesting continues, which are modest, defined expenses rather than open-ended severance obligations.
• Investor implications: This is primarily an operational/management change rather than a financial surprise—investors should monitor the company’s process and timing for appointing a permanent CFO, which could affect investor confidence and near-term planning.