AeroVironment shares fall 15.37% intraday after U.S. Government issues stop work order on BADGER project.

AeroVironment (NASDAQ: AVAV) fell 15.37% intraday following the U.S. Government’s stop work order on its BADGER phased array antenna systems contract under the SCAR program. The order, disclosed via an SEC 8-K filing and confirmed by RBC Capital, halts work until a renegotiated firm-fixed price agreement is finalized. This shift from a cost-plus structure to fixed pricing could reduce profit margins and delay $175 million in projected 2026 revenue, primarily concentrated in the second half. The company expects continued participation in the program but faces near-term revenue headwinds for its Space, Cyber, and Directed Energy segment. The abrupt pause and uncertain renegotiation timeline triggered the sharp intraday decline, reflecting investor concerns over execution risks and margin compression.