Key Highlights

  • AVEX shares fell 9.34% pre-market to $13.00, down $1.34 from the prior close of $14.34.
  • The price sits below the 52-week low of $13.07.
  • The Navy has spent about $137 million on the GARC program.
  • Aevex bought BlackSea in September in a deal valued at up to $650 million.
  • Q1 2026 revenue was $216.7 million, up 307% from a year earlier.

Navy Halt on GARC Purchases Hits Aevex Shares

Aevex (NYSE:AVEX) shares fell 9.34% pre-market today to $13.00, down $1.34 from the prior close of $14.34, which puts the stock below its 52-week low of $13.07. The drop follows a report that the U.S. Navy has stopped purchasing the autonomous speedboats made by Aevex's BlackSea unit after spending nearly $137 million on the technology.

The Navy suspended additional orders for the Global Autonomous Reconnaissance Craft, or GARC, after an independent evaluation identified hardware and performance shortcomings. The service has also been exploring cheaper one-way attack drones. A Navy spokesperson confirmed spending of $136.8 million on 24 prototypes and 301 GARCs but did not address the decision to stop purchases.

Aevex, based in Solana Beach, California, is a defense prime contractor that designs, manufactures and supports autonomous and uncrewed systems, AI-enabled navigation and mission software, and ISR and electronic warfare solutions for U.S. defense and intelligence customers. It went public in April 2026 and has about 650 employees.

BlackSea Deal Raises the Stakes for the Setback

The news is notable because Aevex bought BlackSea Technologies in September in a deal valued at up to $650 million. Shares had fallen as much as 7.5% after hours before recovering most of the loss.

The company said its vessels remain operational across multiple Navy fleets with more than 25,000 hours of maritime activity, and that it plans to improve existing GARC platforms while developing larger autonomous vessels.

Growth, Backlog and Sentiment Overhangs

First-quarter 2026 revenue was $216.7 million, up 307% year over year, with a backlog above $500 million concentrated in a few programs. Aevex reports earnings of $0.21 per share, with a forward P/E of 24.79 and a trailing P/E of 33.26. Market estimates put the median analyst target near $35, far above the current price.

A securities class action tied to the IPO lock-up waiver and insider selling continue to weigh on sentiment, while the stock lags a firmer defense group lifted by RTX (NYSE:RTX) and Northrop Grumman (NYSE:NOC).

Next Up: Navy Plans Beyond GARC

The Navy's withdrawal does not necessarily end Aevex's Pentagon relationship, since BlackSea was recently one of three winners of a separate Navy mine detection and destruction competition. Investors will watch for further Navy decisions and the Pentagon's planned $54 billion request for unmanned capabilities in the next fiscal year.