AeroVironment hardware supports NASA Artemis II communications

INVESTING.COMApr 15, 12:41 PM UTC

Key insights

  • AeroVironment's hardware supported NASA's Artemis II mission, enabling high-speed data transmission. Despite this positive news and strong revenue growth, AVAV stock has fallen significantly in the last six months. The market impact is slightly negative, reflecting investor concerns about profitability or other factors overshadowing the company's technological achievements.
AeroVironment hardware supports NASA Artemis II communications

ARLINGTON, Va. - AeroVironment Inc. (NASDAQ:AVAV) announced Wednesday that its precision pointing hardware was part of NASA’s Artemis II mission, supporting the Orion Artemis II Optical Communications System developed by Massachusetts Institute of Technology Lincoln Laboratory with NASA Goddard Space Flight Center. The $9.8 billion defense technology company has seen its stock fall 49% over the past six months despite strong revenue growth of 117% over the last twelve months.

The O2O system used lasers to transmit high-resolution video and images of the lunar surface to Earth during the mission. AeroVironment’s laser gimbal enabled the spacecraft to point the laser at ground receivers for high-speed data transmission between astronauts in lunar orbit and ground stations, according to a company press release.

NASA Flight Director Rick Henfling told the New York Times the technology enabled data transfer at speeds orders of magnitude higher than the agency’s S-band telemetry system.

AeroVironment delivered a two-axis gimbal and launch latch assembly that provided coarse pointing of the laser communications beam toward ground stations as the spacecraft changed orientation. The O2O laser communications terminal was delivered to NASA in 2023.

The company also supplied fast steering mirrors that provide stabilization and fine pointing adjustments to compensate for spacecraft motions caused by equipment operation, crew movement and environmental disturbances during flight.

The components were designed to withstand launch vibration and acceleration while delivering stable performance in space. The system enables payload pointing accuracy of approximately one micro-radian, equivalent to hitting a one millimeter target from one kilometer away.

AeroVironment has delivered over 150 subsystems across mission areas including laser communications for various customers. The company develops autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. According to InvestingPro, analysts expect the company to return to profitability this year. For deeper insights into AVAV’s financial health and growth prospects, investors can access comprehensive Pro Research Reports covering this and 1,400+ other US stocks.

In other recent news, AeroVironment has made several noteworthy announcements. The company has appointed Sean T. Woodward as its new Executive Vice President and Chief Financial Officer, effective May 1, 2026, with Kevin McDonnell transitioning to an advisory role until July 2026. AeroVironment also secured a $25 million contract from the U.S. Air Force to advance human health and performance technologies. Additionally, the U.S. Navy selected AeroVironment to provide Intelligence, Surveillance, and Reconnaissance services, deploying its JUMP 20-X system for naval operations.

In the financial sector, BTIG reiterated a Buy rating for AeroVironment, maintaining a $330.00 price target following recent contract wins, including two significant awards valued at $117.3 million and $17.6 million. Meanwhile, Raymond James upgraded AeroVironment to Market Perform from Underperform, citing changes in valuation metrics. These developments reflect AeroVironment’s ongoing engagements with military contracts and analyst interest in its financial performance.

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