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Are AeroVironment's Acquisitions Powering Its Future Growth Path?
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Key Takeaways
AeroVironment is leveraging acquisitions to expand capabilities in unmanned systems and defense solutions.
AeroVironment added Tomahawk Robotics and Planck to enhance autonomy, navigation and mission software.
AVAV gains customer access, contract backlogs and cross-selling opportunities to drive revenue growth.
AeroVironment, Inc. (AVAV - Free Report) is actively making acquisitions to expand its capabilities and deepen its presence in the defense market. By bringing in businesses that offer complementary technologies, the company is enhancing its portfolio across unmanned systems and related solutions. This approach allows it to address a wider range of mission requirements while building a more diversified revenue base.
A key part of this strategy is the acquisition of companies like Tomahawk Robotics and Planck Aerosystems. These additions have strengthened AeroVironment’s capabilities in areas such as autonomous control, navigation and mission software. By integrating these technologies with its existing unmanned systems, the company can offer more complete and advanced solutions to its defense customers, improving both functionality and operational value.
These acquisitions also provide access to established customer relationships and existing contract backlogs, which can support near-term revenues. At the same time, they open up opportunities for cross-selling, where AeroVironment can introduce its broader portfolio to newly acquired customers. This helps the company expand its market reach while improving the overall utilization of its technologies.
While integration remains an important focus, AeroVironment continues to align these acquired businesses with its long-term strategy. Overall, its acquisition-led approach positions the company to strengthen its competitive standing and capture future growth opportunities in the defense sector.
Companies Expanding Through Strategic Acquisitions
The defense sector is witnessing increased use of acquisitions to build capabilities and expand market presence. Companies like Innovative Solutions and Support (ISSC - Free Report) and Curtiss-Wright Corporation (CW - Free Report) are also pursuing similar strategies.
In February 2026, ISSC completed the acquisition of the Moog S-TEC Model 3100 general aviation fixed-wing autopilot product line. This acquisition will help the company expand its flight-control capabilities and offer more comprehensive, end-to-end solutions across commercial, business and military aircraft.
CW acquired Ultra Energy in January 2026, expanding its capabilities in nuclear and defense-related monitoring systems. The deal strengthens its position in mission-critical sensing and control technologies, supporting growth across defense and naval nuclear programs.
Earnings Estimates for AVAV Stock
The Zacks Consensus Estimate for fiscal 2026 earnings per share suggests a year-over-year decline of 7.62%, and for fiscal 2027, it indicates growth of 23.34%.
Image Source: Zacks Investment Research
AVAV Stock Trading at a Discount
AeroVironment is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 4.14X compared with the industry average of 12.07X.
Image Source: Zacks Investment Research
AVAV Stock Price Performance
Over the past year, AVAV shares have climbed 25.9% compared with the industry’s 35.7% growth.
Image Source: Zacks Investment Research
AVAV’s Zacks Rank
AeroVironment currently has a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
Are AeroVironment's Acquisitions Powering Its Future Growth Path?
Key Takeaways
AeroVironment, Inc. (AVAV - Free Report) is actively making acquisitions to expand its capabilities and deepen its presence in the defense market. By bringing in businesses that offer complementary technologies, the company is enhancing its portfolio across unmanned systems and related solutions. This approach allows it to address a wider range of mission requirements while building a more diversified revenue base.
A key part of this strategy is the acquisition of companies like Tomahawk Robotics and Planck Aerosystems. These additions have strengthened AeroVironment’s capabilities in areas such as autonomous control, navigation and mission software. By integrating these technologies with its existing unmanned systems, the company can offer more complete and advanced solutions to its defense customers, improving both functionality and operational value.
These acquisitions also provide access to established customer relationships and existing contract backlogs, which can support near-term revenues. At the same time, they open up opportunities for cross-selling, where AeroVironment can introduce its broader portfolio to newly acquired customers. This helps the company expand its market reach while improving the overall utilization of its technologies.
While integration remains an important focus, AeroVironment continues to align these acquired businesses with its long-term strategy. Overall, its acquisition-led approach positions the company to strengthen its competitive standing and capture future growth opportunities in the defense sector.
Companies Expanding Through Strategic Acquisitions
The defense sector is witnessing increased use of acquisitions to build capabilities and expand market presence. Companies like Innovative Solutions and Support (ISSC - Free Report) and Curtiss-Wright Corporation (CW - Free Report) are also pursuing similar strategies.
In February 2026, ISSC completed the acquisition of the Moog S-TEC Model 3100 general aviation fixed-wing autopilot product line. This acquisition will help the company expand its flight-control capabilities and offer more comprehensive, end-to-end solutions across commercial, business and military aircraft.
CW acquired Ultra Energy in January 2026, expanding its capabilities in nuclear and defense-related monitoring systems. The deal strengthens its position in mission-critical sensing and control technologies, supporting growth across defense and naval nuclear programs.
Earnings Estimates for AVAV Stock
The Zacks Consensus Estimate for fiscal 2026 earnings per share suggests a year-over-year decline of 7.62%, and for fiscal 2027, it indicates growth of 23.34%.
Image Source: Zacks Investment Research
AVAV Stock Trading at a Discount
AeroVironment is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 4.14X compared with the industry average of 12.07X.
Image Source: Zacks Investment Research
AVAV Stock Price Performance
Over the past year, AVAV shares have climbed 25.9% compared with the industry’s 35.7% growth.
Image Source: Zacks Investment Research
AVAV’s Zacks Rank
AeroVironment currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.