Drone Maker AEVEX Aerospace (AVEX) Stock Rises 15% on First Day of NYSE Trading

TLDR

• AEVEX (AVEX) priced its IPO at $20 per share, raising $320 million after selling 16 million shares
• Stock opened at $23.01 on the NYSE on April 17, jumping 15% above the offer price
• The IPO was reported to be multiple times oversubscribed
• AEVEX generates 78% of its revenue from the U.S. government; tactical systems account for ~75% of total revenue
• The DoD’s FY2027 budget request included over $50 billion for unmanned autonomous systems

AEVEX Aerospace made a strong first impression on Wall Street Friday, with its stock climbing 15% above its IPO price on its first day of trading on the New York Stock Exchange.

The Solana Beach, California-based company priced 16 million shares at $20 each on Thursday, raising $320 million. The stock opened at $23.01, giving the company a valuation of around $2.57 billion at open.

The IPO was reportedly multiple times oversubscribed, a sign of strong institutional appetite heading into the listing.

Goldman Sachs, Bank of America, and Jefferies Financial led the offering.

AEVEX provides airborne intelligence, surveillance and reconnaissance (ISR) services to the U.S. government and allied forces. Its tactical systems segment — which builds autonomous defense technologies — accounts for roughly 75% of total revenue.

The remaining 25% comes from its global solutions segment, which handles aircraft modification and engineering support across both manned and unmanned platforms.

The U.S. government made up 78% of AEVEX’s revenue in 2025. That concentration means any cuts or delays to government budgets could directly hit its bottom line.

A Pipeline Tied to the Ukraine War

A large chunk of AEVEX’s recent revenue has come from Ukraine. Its two main programs — Phoenix Ghost and EUCOM AOR Deep Strike — have delivered or committed to deliver more than 9,300 systems, representing over $1.2 billion in contract value through the end of 2026.

Demand from the Trump administration is also expected to grow, as it looks to modernize U.S. defense capabilities with cheaper, faster-produced weapons systems.

The company estimates the U.S. market for unmanned systems will grow to $11 billion by 2030, with the global market reaching $26 billion.

A Crowded but Expanding Space

AEVEX now joins a growing list of publicly traded drone and unmanned aerial system companies. It competes with Kratos Defense & Security Solutions (KTOS) and AeroVironment (AVAV), as well as private players like Anduril Industries and Shield AI.

The listing also follows fellow defense-linked IPO Arxis (ARXS), which raised $1.13 billion earlier this week on demand for aerospace, defense and space components.

Wells said AEVEX will stay focused on its core defense business for now but is open to selective expansion into adjacent markets over time.

At the time of its NYSE debut, AVEX had risen approximately 35% from its $20 offer price by end of trading on April 17, according to TipRanks data.

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