AV Issues Statement Regarding Active Negotiations for Contract Amendment to Support U.S. Space Force’s SCAR Program

Key Terms

phased array antenna technical

A phased array antenna is a flat assembly of many small radiating elements whose combined signals are steered electronically instead of by physically moving the antenna, like a crowd of people tilting flashlights together to point a beam. Investors care because this technology enables faster, more reliable wireless connections and radar with fewer moving parts, lowering costs and enabling new products and services in telecom, defense, satellites and automotive markets.

firm-fixed-price contract financial

A firm-fixed-price contract is an agreement where a buyer and a seller agree on one nonchanging price for goods or services, so the seller is paid that amount regardless of its actual costs. Think of hiring a contractor to build a deck for a set fee: the contractor bears the risk if materials or labor cost more than expected, while the buyer gets price certainty. For investors, these contracts mean predictable revenue but higher exposure of the seller’s profit margin to cost overruns and efficiency, affecting earnings stability and cash flow forecasts.

directed energy technical

Directed energy describes weapons or tools that send concentrated beams of energy—such as lasers, microwaves, or particle streams—toward a target to heat, disable, or disrupt it rather than using conventional projectiles. Like using a magnifying glass to focus sunlight on a single spot, these systems can deliver effects at speed and with precision. Investors watch directed energy because it drives defense and high-tech spending, influences regulatory and export rules, and carries long development timelines and maintenance costs that affect company value.

Confident in ability to successfully deliver AV’s systems ahead of competitors

ARLINGTON, Va.--(BUSINESS WIRE)-- AeroVironment, Inc. (“AV” or the “Company”) (NASDAQ: AVAV), a global defense technology leader, today issued the following statement regarding the U.S. Space Force’s delivery of BADGER phased array antenna systems to support the Satellite Communications Augmentation Resource (“SCAR”) program:

We remain in active negotiations with the U.S. Space Force regarding AV’s contract to deliver ground stations to support the SCAR program. AV appreciates that the contract was temporarily paused while both parties work together on a firm-fixed-price contract that provides a commercialized product solution with an expedited delivery timeline. AV is focused on aligning to customer needs and, as separately announced, is actively investing in expanding manufacturing capacity in Albuquerque, New Mexico to support growth in our Space and Directed Energy platforms, including manufacturing for the SCAR program.

AV’s innovation and ability to scale ahead of manufacturing remains a key differentiator, giving us a competitive edge in the broader defense market. AV is confident in its ability to successfully deliver our systems ahead of competitors.

As previously announced, AV will report its financial results for the third quarter of fiscal year 2026 after the market closes on March 10, 2026. Management will host a conference call and live audio webcast at 4:30 p.m. Eastern Time that same day to discuss the results.

About AV

AeroVironment (“AV”) (NASDAQ: AVAV) is a defense technology leader delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities—built to meet the mission needs of today’s warfighter and tomorrow’s conflicts. At the core of these technologies lies AV_Halo™, a modular, mission-ready suite of AI-powered software tools that empowers warfighters and enables full-battlefield dominance: detect, decide, deliver. With a national manufacturing footprint and a deep innovation pipeline, AV delivers proven systems and future-defining capabilities at speed, scale, and operational relevance. For more information, visit www.avinc.com.

Safe Harbor Statement

Certain statements in this press release may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties, which could cause actual results to differ materially. Factors that may cause such differences include, but are not limited to, our ability to perform under existing contracts and obtain new ones; regulatory changes; competitor activities; market growth; product development challenges; and general economic conditions. For a more detailed discussion of these risks, please refer to AeroVironment’s filings with the Securities and Exchange Commission. We undertake no obligation to update forward-looking statements as a result of new information or future events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260303909431/en/

Media Contact:

BJ Koubaroulis

pr@avinc.com

703.718.4060

Investor Contact:

Denise Pacioni

ir@avinc.com

805.795.4108

Source: AeroVironment, Inc.