Aevex (AVEX) Jumps 11% After Disputing Navy GARC Report

Aevex (AVEX) stock rose more than 11% after the drone maker rejected a Bloomberg report that the Navy stopped buying its GARC boat, a day after a 33% plunge.

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Why Did Aevex Shares Fall 33% Before the Rebound?

Aevex shares fell about 33% on Wednesday to a record low of $9.64 after Bloomberg reported that the Navy had suspended further purchases of the Global Autonomous Reconnaissance Craft, or GARC. The report said the service had already spent more than $130 million on the unmanned speedboats, built by Aevex's BlackSea unit.

The report cited an independent evaluation that found hardware limitations. It also pointed to cheaper alternatives, including one-way attack drones, that have emerged for maritime combat. The stock had traded well above its current level before the selloff, with a 50-day moving average near $16.30. Market capitalization stood at roughly $1.13 billion after the drop.

What Did Aevex Say About the GARC Program?

Aevex said the reports contained factual inaccuracies and that no orders have been halted. In a statement issued late Wednesday, the company said it had completed its original contractual obligation by delivering 325 GARC units to the Navy in 2025. The Navy had not planned further vessel purchases under that contract, it said, because it is distributing the existing fleet across multiple commands and missions.

The company added that contract modifications in 2026 raised the agreement's total value to about $350 million and extended it through June 2027. Aevex said current revenue comes in part from enhanced mission packages, including mine-countermeasure systems, and reaffirmed continued investment in its Maritime Systems division.

The two accounts are not necessarily contradictory. A fleet of 325 craft can be fully delivered while the Navy declines to order more, and the dispute centers on whether that reflects satisfaction with a completed buy or dissatisfaction with performance.

Market Reaction

The rebound came as broader equity indexes traded lower, which points to a company-specific recovery rather than a sector move. Pre-market gains of about 7% widened during the session. After-hours trading on Wednesday had already shown a 5.7% gain to $10.23 once the company's statement circulated.

Aevex went public this year and has grown quickly. Its most recent quarterly revenue was $201.8 million, up 99.5% from a year earlier, though quarterly earnings per share of $0.01 fell short of the $0.06 consensus. That mix of fast sales growth and thin profitability leaves the shares sensitive to any signal on large government programs.

What Comes Next for Aevex and the Navy's Drone Boat Plans?

The next test for Aevex is whether the Navy confirms its procurement intentions and whether further funding appears for GARC sustainment, upgrades or mission packages. The GARC program is one of the largest fielded autonomous surface vessel efforts in the US fleet. Any shift toward lower-cost expendable systems would affect the wider unmanned maritime market, not only Aevex.

Near term, investors will watch for Navy commentary and for how much of Aevex's backlog depends on the maritime unit. A clear public statement from the service would either settle the question or reopen the selloff.

Outlook

Aevex recovered part of Wednesday's loss, but the shares remain far below recent levels. The company's account rests on a completed 325-unit delivery and an expanded $350 million contract running to mid-2027. The Bloomberg report points to performance shortfalls and changing Navy priorities, and the Navy's own position is the missing piece.