AeroVironment Gains from Space Force Antenna Talks and $30M Expansion
AeroVironment is negotiating a firm-fixed-price deal to supply BADGER phased-array antenna systems for the US Space Force SCAR program and saw shares rise 8.8% on heightened defense tensions. The company will invest over $30 million in Albuquerque manufacturing, backed by a $6 million incentive package, creating 450 jobs.
1. Defense Sector Rally and Space Force Contract
Shares jumped 8.8% following a joint US-Israel strike on Iran that heightened global defense spending expectations. AeroVironment is in active negotiations for a firm-fixed-price contract to deliver BADGER phased-array antenna systems under the Satellite Communications Augmentation Resource (SCAR) program, aiming to commercialize and expedite delivery of ground stations.
2. Manufacturing Expansion in New Mexico
The company will invest over $30 million to expand its Albuquerque footprint across three Sandia Science & Technology Park facilities. The project receives $6 million in state and local incentives and is projected to generate $670 million in economic impact and create more than 450 high-wage jobs over the next decade.
3. Earnings Outlook and Analyst Revisions
For Q3 fiscal 2026, consensus estimates project EPS of $0.73 versus $0.30 a year ago and revenue of roughly $483 million. Analyst consensus remains bullish with a buy rating and average price target near $353.89, despite recent target adjustments by Baird, Piper Sandler and Jefferies.