AeroVironment Becomes a Space Stock After Acquiring Blue Halo
In May 2025, AeroVironment (NASDAQ: AVAV) completed its $4.1 billion acquisition of defense company Blue Halo, transforming the drone manufacturer into a broader aerospace and defense technology leader with capabilities in air, land, sea, space, and cyber domains. The deal significantly boosted AeroVironment's revenue, which jumped from $820 million to over $2 billion within one year. However, profitability declined after the acquisition, as Blue Halo’s newly formed SCDE division became a drag on earnings in 2026 and early 2027. Despite short-term losses, analysts remain optimistic about AeroVironment's long-term prospects. Forecasts suggest it could return to GAAP profitability by late 2027 with $0.45 per share in earnings, followed by significant growth through 2031.
Topics: AeroVironment Blue Halo acquisition defense technology space division