AEVEX shares jump 11% after $50M Air Force contract

AEVEX shares jumped 11% in Tuesday trading after the U.S. Air Force awarded the defense contractor a $50 million contract to expand unmanned mission support and long-range strike platforms. The contract, issued through the Air Force's Rapid Capabilities Office, covers work on both existing and next-generation systems, according to a company statement. AEVEX said the award deepens its role in autonomous systems.

The company has not provided further details on the contract's timeline or scope beyond the amount. The stock's gain outpaced the broader market, with the S&P 500 up less than 0.5% on the day. AEVEX, traded under the ticker AVEX, is a defense electronics and unmanned systems contractor.

The award adds to a backlog that the company has been building in recent quarters, though it did not disclose the total value of outstanding orders. AEVEX shares are up about 11% year to date, roughly in line with the defense sector's performance.