AeroVironment Negotiates Contract Terms with U.S. Space Force for SCAR Program
AeroVironment Inc. is in active negotiations with the U.S. Space Force regarding the SCAR program contract, which is currently on hold. The contract, valued between $1.4 billion and $1.7 billion, is being revised for a firm-fixed price agreement with an accelerated delivery schedule. The uncertainty has affected AeroVironment's stock, which fell 21% last week. The company is expanding its manufacturing capacity in Albuquerque, New Mexico, and will report its Q3 FY2026 financial results on March 10, 2026.
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AeroVironment Inc. is currently negotiating with the U.S. Space Force over the SCAR (Satellite Communications Augmentation Resource) program contract, which has been suspended to allow for the development of a firm-fixed price agreement.
The contract, valued between $1.4 billion and $1.7 billion, aims to modernize ground infrastructure for the U.S. geostationary satellite constellation. Stock prices fell 21% last week due to uncertainties surrounding the contract, with AeroVironment's shares trading at $208.32.
The company is investing $30 million in expanding its manufacturing capabilities in Albuquerque, New Mexico. It is set to announce its Q3 FY2026 financial results on March 10, 2026.
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