AeroVironment Completes ESAero Acquisition to Expand Defense Capabilities

AeroVironment ( (AVAV) ) just unveiled an announcement.

On March 16, 2026, AeroVironment, Inc. completed the approximately $200 million acquisition of Empirical Systems Aerospace, Inc., paying roughly $160 million in stock and the remainder in cash, with the deal subject to customary adjustments. ESAero, a leading UAS and advanced air mobility platform producer with AS9100-certified facilities in San Luis Obispo, now becomes a wholly owned subsidiary within AeroVironment’s Precision Strike and Defense Systems group under the Loitering Munition Systems business unit.

The transaction is expected to be accretive to adjusted EBITDA in the first year after closing and is intended to enhance AeroVironment’s ability to move rapidly from conceptual design to advanced manufacturing. By adding ESAero’s electric and hybrid propulsion expertise, rapid prototyping capabilities and large-scale manufacturing footprint, the deal strengthens AeroVironment’s positioning as a global defense tech leader, following its $4.1 billion BlueHalo acquisition in May 2025 and signaling an ongoing strategy of integrating specialized innovation hubs into a unified capability suite for government and industry customers.

The most recent analyst rating on (AVAV) stock is a Buy with a $388.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

Spark’s Take on AVAV Stock

According to Spark, TipRanks’ AI Analyst, AVAV is a Neutral.

AVAV scores lowest on current financial performance and technical trend: TTM profitability and free cash flow are negative and the stock trades below key moving averages with a negative MACD. These are partially offset by a notably strong earnings-call outlook (raised guidance, record bookings/awards, and high visibility) and a supportive balance sheet with modest leverage, while valuation is constrained by losses (negative P/E) and no dividend yield data.

To see Spark’s full report on AVAV stock, click here.

More about AeroVironment

AeroVironment, Inc. is a U.S. defense technology company that delivers integrated capabilities across air, land, sea, space and cyber domains. It develops autonomous systems, loitering munitions, counter‑UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare tools, anchored by its AI-powered AV_Halo software suite for mission planning and battlefield dominance.

With a national manufacturing footprint and a robust innovation pipeline, AeroVironment supplies mission-critical systems to government and defense customers, focusing on rapid deployment at scale. The company’s portfolio positions it as a leading provider of advanced unmanned and defense technologies tailored to evolving warfighter requirements and future conflicts.

Empirical Systems Aerospace, Inc. (ESAero) is a California-based producer of unmanned aerial systems and advanced aerospace technologies for commercial and military uses. It offers vertically integrated, AS9100-certified services across R&D, engineering, design for manufacturing, rapid prototyping, testing and high-volume serialized production of electric and hybrid-propulsion aircraft systems.

Operating more than 130,000 square feet of facilities in San Luis Obispo, ESAero specializes in conceptual air vehicle design, propulsion system development, aircraft modifications and sub-scale demonstrators. Its operations are structured to scale manufacturing quickly, supporting partners and customers with reliable, innovative and scalable UAS and advanced air mobility platforms.

Average Trading Volume: 1,812,899

Technical Sentiment Signal: Sell

Current Market Cap: $10.34B

For a thorough assessment of AVAV stock, go to TipRanks’ Stock Analysis page.