Why Aerovironment Stock Jumped 57% in 2025

• Aerovironment soared past twelvemonth connected beardown maturation and the acquisition of BlueHalo.

• The banal is disconnected to a beardown commencement successful 2026.

• Bookings are soaring, indicating beardown momentum successful the business.

• 10 stocks we similar amended than AeroVironment ›

Drone-maker Aerovironment (NASDAQ: AVAV) (AV) was among the winners past twelvemonth arsenic the institution benefited from its acquisition of BlueHalo, expanding involvement successful drones, and President Trump's promises to summation spending connected instrumentality enforcement and the military.

Aerovironment besides delivered beardown maturation and expanded its addressable market, securing a large declaration with the U.S. Army and seeing a surge successful bookings.

According to information from S&P Global Market Intelligence, the banal finished the twelvemonth up 57%. As you tin spot from the illustration below, the banal was volatile implicit the year, but inactive finished with beardown gains.

The biggest quality past twelvemonth retired of Aerovironment was its acquisition of BlueHalo, which astir doubled the company's revenue. The woody was announced successful November 2024, but didn't adjacent until May 2025, truthful it didn't commencement to interaction the company's results until past year.

BlueHalo is known for its spot successful space, cyber, and directed energy, which complements AV's spot successful unmanned drones, robots, and different autonomous systems, importantly broadening the scope of the high-tech defence company.

The acquisition is intelligibly having an interaction connected the business. In the 2nd 4th of 2025, which includes each of the BlueHalo acquisition, gross jumped 151% to $472.5 million. Most of that came from BlueHalo, but integrated gross was up 21%, showing that the halfway concern continues to present coagulated growth. AV besides reported bookings of $1.4 billion, a beardown indicator of aboriginal revenue, arsenic those bookings volition person into gross arsenic the work is provided. Its backlog, which is defined arsenic orders that person been funded, reached $1.1 billion.

The stock's inclination implicit the year, arsenic you tin spot above, shows that there's inactive a batch of hazard and overmuch of its show is linked to aboriginal expectations and capitalist sentiment astir drones and emerging technology.

However, dissimilar different emerging tech stocks, including the electrical vertical takeoff and landing (eVTOL) sector, AV has historically been profitable and is expected to make adjusted net per stock of $3.40-$3.55.

The caller twelvemonth has conscionable started, but AeroVironment is already disconnected to a blistering start, up 52.6% done Jan. 15, driven by expanding involvement successful defence stocks aft the U.S. apprehended President Maduro of Venezuela. President Trump besides said helium wanted to boost the 2027 defence fund from $1 trillion to $1.5 trillion, which should beryllium a boon to the company.