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AeroVironment Faces Stop Work Order, Renegotiates SCAR Deal

Story Highlights
  • On January 16, 2026, AeroVironment and the U.S. Government agreed to a stop work order on the BADGER antenna contract for the SCAR program.
  • The parties plan to renegotiate the SCAR agreement as a firm-fixed-price contract, with AeroVironment expecting to keep providing capabilities and products under the program.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
AeroVironment Faces Stop Work Order, Renegotiates SCAR Deal

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An announcement from AeroVironment ( (AVAV) ) is now available.

On January 16, 2026, the U.S. Government, in mutual agreement with AeroVironment, issued a stop work order on the company’s Other Transaction Agreement for delivery of BADGER phased array antenna systems under the Satellite Communication Augmentation Resource (SCAR) program, pausing current work while the parties negotiate an amended agreement aligned with new program requirements. The revised arrangement is expected to shift to a firm-fixed-price structure, signaling a move toward tighter cost controls and clearer risk allocation, and AeroVironment indicated it expects to continue supplying capabilities and products for SCAR, suggesting the program remains strategically important despite the interim disruption to contract execution.

The most recent analyst rating on (AVAV) stock is a Hold with a $366.00 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.

The score is supported primarily by strong earnings-call momentum (raised guidance, record bookings/awards, and strong backlog visibility) and bullish technicals (price above key moving averages with positive MACD). These positives are materially offset by weak underlying financial performance (losses, negative operating cash flow, and revenue contraction) and unfavorable valuation signals from a negative P/E.

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

More about AeroVironment

AeroVironment, Inc. operates in the defense and aerospace sector, providing advanced technological systems and products to U.S. government customers, including communications and antenna solutions that support military satellite communication programs.

Average Trading Volume: 1,112,350

Technical Sentiment Signal: Buy

Current Market Cap: $19.61B

For an in-depth examination of AVAV stock, go to TipRanks’ Overview page.

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