Key Highlights

  • AVEX shares fell 22.66% pre-market to $11.09 from a $14.34 prior close.
  • The Navy halted purchases of BlackSea's autonomous speedboats after spending about $137 million.
  • Shares trade below the $13.07 52-week low.
  • Aevex says its vessels remain operational, with more than 25,000 hours of activity.

Navy Halts GARC Purchases

Aevex (NYSE:AVEX) shares fell 22.66% pre-market today to $11.09, down $3.25 from the prior close of $14.34. The drop follows a report that the U.S. Navy has stopped purchasing autonomous speedboats from 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 reportedly identified shortcomings in the vessels' hardware and performance. The military has also been exploring cheaper one-way attack drones that could accomplish similar missions. A Navy spokesperson confirmed the service has spent $136.8 million on 24 prototypes and 301 GARCs but did not address the decision to stop purchases.

Company Response and Remaining Opportunities

Aevex said its unmanned vessels remain operational across multiple Navy fleets and task forces, with more than 25,000 hours of maritime activity. It plans to improve existing GARC platforms while developing larger autonomous vessels for potential military uses. BlackSea was also among three winners of a recent Navy competition for autonomous mine detection and destruction, a program separate from GARC.

The setback is notable because Aevex acquired BlackSea in September in a deal valued at up to $650 million, and because the Pentagon is preparing to request $54 billion to expand its unmanned capabilities in the next fiscal year.

Pressure Points and Valuation

Shares fell as much as 7.5% after hours on Tuesday before recovering most of the loss, and they now trade below their $13.07 52-week low. The stock was already under pressure from IPO lock-up class-action litigation and insider selling, and strong earnings from defense peers Northrop Grumman (NYSE:NOC) and RTX (NYSE:RTX) have not offset the company-specific concerns.

Aevex went public in April 2026 and has about 650 employees. First-quarter 2026 revenue was $216.7 million, up 307% from a year earlier. The shares carry a forward P/E of 24.79 and a trailing P/E of 33.26, with a 52-week range of $13.07 to $42.34. Volume was 1.20 million shares in the last session.

Next Up: Navy Clarity

Investors will watch for any further Navy decision on GARC and for company updates on its maritime pipeline.