Why AEVEX Stock Is Up Today
The defense contractor's next-generation drones are in high demand.
AEVEX (AVEX) stock experienced a significant surge of over 13% on Thursday, following the defense technology company's announcement of raising its full-year growth targets. The company reported a robust third-quarter revenue, which surged 56.5% year over year to $189.7 million. This growth was primarily fueled by the escalating demand for AEVEX's unmanned aircraft systems (UAS) and associated services, particularly amid the ongoing conflicts in Ukraine and the Middle East.
The drone manufacturer's airborne systems revenue saw a remarkable 67% increase, reaching $147.8 million. Furthermore, the company's maritime systems revenue saw an astonishing sevenfold jump to $14.4 million. AEVEX finalized its acquisition of BlackSea, a renowned provider of unmanned surface and subsea vessels, on September 8.
BlackSea contributed a noteworthy addition to the Navy's unmanned surface systems, bolstered production capabilities, and established customer relationships, according to AEVEX's CEO Roger Wells. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 73% to $30.8 million. Strong sales trends prompted AEVEX to revise its full-year guidance, anticipating revenue between $820 million and $840 million, coupled with adjusted EBITDA ranging from $128 million to $132 million in 2026.
This growth projection surpassed the company's prior forecast of $700 million to $720 million in revenue and $105 million to $111.5 million in adjusted EBITDA. CEO Wells emphasized the company's strategy of scaling production, broadening customer reach and mission, investing ahead of threats, and constructing a unique multi-domain autonomous systems enterprise.
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