Space Force Halts BADGER Project; AeroVironment Gained 57% After BlueHalo Deal
The Space Force has issued a stop work order on AeroVironment’s BADGER space radar project, converting any future work into a fixed-price contract. In 2025 AeroVironment stock surged 57% on strong growth and the BlueHalo acquisition and has continued to rally in early 2026.
1. Space Force Issues Stop Work Order on BADGER Radar Project
On January 15, 2026, the U.S. Space Force issued a stop work order on AeroVironment’s BADGER space-based radar initiative, citing technical discrepancies in payload integration. The contract, originally awarded in March 2024 with an estimated value of $200 million over three years, will now transition to a fixed‐price arrangement if work resumes. AeroVironment must address performance and cost‐control requirements before any further funding is released, raising concerns among investors about potential margin pressure and project delays through late 2026.
2. AeroVironment Stock Climbed 57% in 2025 on Strong Growth and BlueHalo Acquisition
During calendar 2025, AeroVironment delivered revenue of $1.2 billion, up 18% year-over-year, driven by expanded drone sales in defense markets and a December closing of the $200 million BlueHalo acquisition. BlueHalo’s sensor integration capabilities bolstered AeroVironment’s UAV payload offerings and contributed $50 million in incremental revenue for the quarter. The company ended the year with a $500 million contract backlog—10% higher than a year earlier—and reported adjusted EBITDA margin of 16%, supporting a 57% gain in its share price over the twelve-month period.