Aevex shares plunge 26% after report of Navy halt on drone-launch boat purchases

what happened

Shares of Aevex fell sharply on Thursday after a report that the U.S. Navy has paused purchases of its speedboats used to launch drones from the sea. By midday the stock was down 26% at about $11, less than half its closing price on the company's first day as a public company in April, Barron's reported, citing Bloomberg. Other drone makers, including AeroVironment, Kratos and Karman, appeared unaffected.

The setback is especially painful because Aevex completed its $650 million purchase of BlackSea, the boat maker, in September. According to Bloomberg, the Navy has spent $136.8 million on the vessels so far. The halt was linked to ongoing performance issues with the hardware and the emergence of cheaper alternatives, including one-way attack drones. Aevex and the Navy did not respond to Barron's request for comment.

why it matters

Aevex relies mostly on contracts with the U.S. government, and in August it expected sales to rise from $433 million in 2025 to $700–720 million in 2026. The drone sector already faces pressure over fears that defense spending could be cut after the midterm elections. Year to date, AeroVironment, Karman and Kratos are each down roughly 50%.

market impact

Aevex and drone makers: smaller Navy orders weigh on the stock and sector sentiment

tags

instruments