Shares of AEVEX Aerospace fell 8.3% to $13.15 after Bloomberg reported the U.S. Navy halted new orders for autonomous patrol boats made by BlackSea Global, a company AEVEX acquired just weeks ago in September. The Navy had already spent more than $130 million on the program, but now says the boats underperformed and cheaper options exist. For a small defense contractor, losing a flagship contract this quickly after closing an acquisition raises pointed questions about due diligence and growth prospects. AEVEX Paid $650 Million for a Drone Boat Maker — Six Weeks Later, the Navy Walked Away. Was the Deal Doomed From the Start?
Shares of AEVEX Corp. tumbled 8.3% to $13.15 after Bloomberg reported that the U.S. Navy halted all new purchases of autonomous patrol boats built by BlackSea, the maritime drone company AEVEX acquired barely six weeks ago. The timing could hardly be worse for a deal management called "transformational."
The Navy Spent $137 Million, Then Found Something Cheaper. The boats were suspended due to "ongoing performance issues related to limitations to the hardware and the emergence of more suitable alternatives, including cheaper one-way attack drones."
The decision came after the Navy commissioned an independent assessment. The warning signs were visible well before the acquisition closed: during a 2025 test off California, a BlackSea drone vessel collided with another boat after a software glitch, and in a separate incident, a BlackSea boat being towed suddenly accelerated and capsized a support craft. Investors must now ask what AEVEX's due diligence missed — or chose to accept.
A $650 Million Bet That Just Lost Its Anchor Customer. AEVEX paid $250 million in cash and roughly $350 million in stock, plus up to $50 million in performance-based earnouts.
Before BlackSea, AEVEX projected $600–$620 million in 2026 revenue; BlackSea was expected to add around $150 million and drive above-market growth in 2027 and beyond. With the Navy — BlackSea's primary buyer — walking away, that revenue bridge looks shaky. The earnout milestones now appear unlikely to be hit, but the upfront cost is already on the books.
Drone Boats Aren't Dead — But AEVEX May Not Lead the Next Chapter. The broader U.S. effort to field autonomous maritime vessels remains a strategic priority, aimed at countering China's growing naval power. However, the program "has fallen behind schedule and been dogged by technical problems, cost concerns and a series of testing setbacks." Competitors like Saronic are still in the game. AEVEX's challenge is that it bought the incumbent platform right as the Navy decided incumbency wasn't enough.
The Stock Had Already Been Sliding. AVEX fell from $15.36 on October 16 to $14.34 by October 20, suggesting early leaks or growing unease. With a market cap now around $992 million, AEVEX's entire maritime expansion thesis hangs on finding new military or allied buyers for a product its biggest customer just rejected.