The U.S. Space Force has issued a stop work order on AeroVironment's BADGER phased array antenna systems contract. The order was disclosed by AeroVironment in an SEC filing on Tuesday morning.
AeroVironment stock fell 4.7% by 10:50 a.m. ET following the announcement. The company stated the stop work order allows both parties to negotiate an amended agreement for the Satellite Communication Augmentation Resource program.
The amended agreement is expected to be a firm-fixed price contract. AeroVironment had previously announced winning this contract with the U.S. Space Force Space Rapid Capabilities Office in September.
According to earlier statements, the BADGER systems were intended for satellite tracking, telemetry, and control. AeroVironment had promised to deliver the first unit in the coming months, with more units scheduled for early 2026 to support overseas deployment.
The company did not issue a press release about the stop work order, choosing instead to file the information with the SEC. AeroVironment has not disclosed the contract's value.
The reference to a firm-fixed price agreement suggests the original contract may have been cost-plus. This change could potentially affect profit margins if the contract continues.