Aevex's Navy drone-boat deal grows to about $350 million and runs through June 2027

Contract update and missions

Aevex said the Navy adjusted the existing deal for its unmanned speedboats known as GARCs - short for global autonomous reconnaissance crafts - increasing the overall value to roughly $350 million, with the term now running through June 2027. The company added the following statement: "successfully completed its contractual obligation having delivered 325 GARC units to the Navy in 2025."

The firm said the Navy is paying for enhancements to the platform, including upgrades and mission-focused capabilities, and that GARCs are being assigned to new roles such as mine countermeasures - commonly defined as detecting and neutralizing explosives. Aevex said the units are doing those "MCM missions" in the Strait of Hormuz. It also said it has been enhancing boats already delivered "with new mission packages" under the contract.

Stock reaction and the procurement outlook

Bloomberg reported the Navy plans no additional purchases of GARC boats, citing a person briefed on the decision who pointed to ongoing performance limitations and the rise of alternatives such as cheaper one-way attack drones. Bloomberg also quoted a defense official with knowledge of the platform, who said GARC's testing performance over time has been judged a failure, pointing to problems with hardware, software and sensors.

Those headlines drove sharp moves in the stock. The news sent the stock down 33% on Wednesday, erasing nearly $600 million in market value, before it rebounded 13% on Thursday. RBC Capital Markets analyst Kenneth Herbert called the selloff a buying opportunity, "but we expect investor skepticism on GARC and concern on 2027 Ukraine backfilling to weigh on the stock."

Aevex countered by highlighting deliveries, Navy-funded upgrades and ongoing tasking for the boats, and said it is "progressing" next-generation unmanned surface vessels, including Chaser and Comet.

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What operations show today

A Navy spokesperson said the service's outlays so far total $136.8 million for 24 prototypes and 301 GARCs, and that training, exercises and operational use have provided practical experience that is helping accelerate robotic and autonomous systems. The spokesperson said the craft are still being used on missions today.

Asked if GARCs are assisting US Central Command with mine clearance in the Strait of Hormuz, US Navy Captain Tim Hawkins pointed to August remarks by CENTCOM Commander Admiral Brad Cooper. In those remarks, Cooper stated that the US had cleared international shipping routes of mines in the strait by employing Navy divers, SEALs and air operations, and did not mention naval vessels.

Tech fixes, next steps and who is building what

Aevex officials said the GARC's evolution has moved beyond its early concept as a remote-controlled ocean-survey craft, and that some setbacks in experimentation reflected process, testing and integration challenges. Paul Seiffert, who leads Aevex's unmanned surface vessel programs, said the Navy backed approximately 75 engineering change proposals during development to enhance performance and reliability. "Each one of those were either for performance or reliability, making a product better," he said.

Separately, Aevex bought GARC maker BlackSea Technologies in September for up to $650 million. CEO Roger Wells said the "Navy's continued investment in the GARC fleet, combined with our transition to next-generation platforms, reinforces the strategy behind this acquisition." This month, BlackSea was one of three winners in a Navy prize challenge for autonomous mine-hunting and mine-destruction demonstrations, a program distinct from GARC. As of Friday, GARC still appeared among the Navy's surface warfare programs inside its new push on robotic and autonomous systems meant to speed adoption.

The bottom line: evidence points to fewer near term orders for the current boat, continued use of the fleet already built, Navy-funded upgrades, and a pivot to newer platforms - all variables investors will weigh alongside a volatile share price.

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