AeroVironment Strengthens Its Role in the Expanding Space Market

As governments and private companies worldwide are investing heavily in satellites, communications and surveillance systems to improve connectivity and strengthen security, AeroVironment, Inc. AVAV stands to benefit from this growing trend. The falling cost of launches and the increasing use of low-Earth-orbit constellations have also enhanced growth opportunities for space-based technology providers like AVAV.

The company has been expanding its presence in the space domain through strategic investments and partnerships.

In September 2025, AeroVironment secured a contract with the U.S. Space Force Space Rapid Capabilities Office for the delivery of two BADGER phased array antenna systems under the Satellite Communication Augmentation Resource program. The deal underscores AVAV’s growing presence in advanced satellite communication technologies supporting national defense initiatives.

In the same month, it secured an order worth approximately $240 million for its long-haul laser communications terminals, reinforcing AeroVironment’s role in the satellite communication market.

In July, AVAV unveiled Skyfall, a next-generation Mars helicopter concept developed with NASA’s Jet Propulsion Laboratory (JPL). The project aims to explore Mars autonomously and support future human missions by providing an affordable, ready-to-launch solution by 2028.

Its acquisition of BlueHalo in May 2025 marked another major step in strengthening its capabilities in space engineering, laser communication and satellite systems. This acquisition should further solidify AVAV’s position as a major provider of resilient space-based communications.

Peers Maintain Strong Market Presence

The modern space industry continues to evolve rapidly, driven by new technologies, growing satellite launches and rising investments in space infrastructure. Companies like Kratos Defense & Security Solutions KTOS and Rocket Lab USA Inc. RKLB are well-positioned to benefit from these developments alongside AeroVironment.

Kratos specializes in advanced space launch systems, including hypersonic payload launch vehicles. In March 2025, it secured a contract along with Corvid Technologies to support the Short/Medium Range Sub-Orbital Vehicle (SSOV) II program, with potential value exceeding $50 million.

Rocket Lab’s Electron rocket serves small satellite launches, while its upcoming Neutron rocket is designed for larger payloads and constellation deployments. In September 2025, the company secured a multi-launch contract with Japan’s Synspective for 10 dedicated Electron missions, marking its largest single-customer order to date.

The Zacks Rundown for AVAV

Shares of AVAV have surged 89.7% in the past year, outperforming its industry’s 37.3% growth.

The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Earnings being 98.89X compared with its industry’s average of 50.70X.

The Zacks Consensus Estimate for AVAV’s near-term earnings (except 2026) has improved over the past 60 days.

AVAV stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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