Why Aerovironment Stock Jumped 57% in 2025

Core Insights - Aerovironment experienced significant growth due to the acquisition of BlueHalo, increased interest in drones, and government spending promises [1][4] - The company's stock rose 57% over the year, despite volatility [2] - The acquisition of BlueHalo nearly doubled Aerovironment's revenue, impacting results significantly [4] - BlueHalo's strengths in space, cyber, and directed energy complement Aerovironment's unmanned systems, broadening its market scope [5] Financial Performance - In Q2 2025, revenue surged 151% to $472.5 million, primarily driven by BlueHalo, with organic revenue growth of 21% [6] - Bookings reached $1.4 billion, indicating strong future revenue potential, with a backlog of $1.1 billion [6] - The company is expected to generate adjusted earnings per share of $3.40-$3.55 [7] Market Outlook - Aerovironment's stock is up 52.6% as of mid-January 2026, fueled by rising interest in defense stocks and potential increases in the defense budget [8] - The outlook for 2026 appears strong, with expectations of continued growth [8]