AeroVironment’s $30M Factory Expansion and Space Force Contract Talks
AeroVironment’s active talks with U.S. Space Force to deliver BADGER phased-array antennas have propelled its stock higher. The company unveiled a $30 million expansion in Albuquerque backed by $6 million in incentives and guided Q3 EPS to $0.73 on $483 million revenue, underpinning growth expectations.
1. Space Force Contract Negotiations
AeroVironment is in active negotiations to finalize a firm-fixed-price contract with the U.S. Space Force for BADGER phased-array antenna systems intended for the SCAR satellite communications program. The paused agreement is focused on delivering ground stations with expedited timelines and commercially scalable solutions, leveraging the company’s manufacturing readiness.
2. New Mexico Manufacturing Expansion
The company announced a $30 million investment to expand its Albuquerque manufacturing campus across three facilities, supported by $5 million from the State of New Mexico and $1 million from the City of Albuquerque. The project aims to create over 450 high-wage jobs, upgrade capital equipment, and generate an estimated $670 million economic impact over the next decade.
3. Q3 Fiscal 2026 Estimates
AeroVironment forecast third-quarter EPS of $0.73, up from $0.30 a year ago, and revenue of $483.39 million versus $167.64 million in the prior period. These projections reflect strong defense demand and leverage the anticipated contract award and manufacturing ramp-up.
4. Analyst Ratings and Price Targets
Analysts maintain a Buy consensus with an average price target of $353.89. Recent adjustments include Baird lowering its target to $260, Piper Sandler reducing to $290, and Jefferies holding at $390, highlighting varying outlooks on contract timing and delivery execution.