AVAV Falls on Stop Work Order for Space Force Contract

Shares of AeroVironment slid after the company said it had received a stop work order on its contract option to provide two BADGER phased array antenna systems for the U.S. Space Force.

The stock dropped 15%, to $333.00, Tuesday afternoon, but has nearly doubled in value in the past year.

The defense contractor said Tuesday that it and the U.S government had mutually agreed to the stop work order, which would halt the delivery of the BADGER systems for the Satellite Communication Augmentation Resource program.

It said the order allows the company to negotiate with the government for an amended contract under new requirements for the SCAR program. That amendment, like the initial contract, is expected to be a firm-fixed-price contract.

"The Company expects to continue to deliver capabilities and products for the SCAR program," AeroVironment said.