AeroVironment partners with Korean Air for unmanned aircraft systems

SEOUL - AeroVironment, Inc. (NASDAQ:AVAV), whose stock has surged over 140% in the past six months and currently trades near its 52-week high of $417.86, has signed a Memorandum of Understanding with Korean Air, establishing the airline as its priority partner in South Korea, according to a press release issued Tuesday.

The partnership will focus on adapting AeroVironment’s JUMP 20 vertical takeoff and landing unmanned aircraft system to meet Korean defense requirements. The collaboration also aims to support local production and joint research efforts, aligning with the Korean Ministry of National Defense’s goals to expand domestic unmanned systems manufacturing. According to InvestingPro data, analysts expect significant sales growth this year, with four analysts recently revising their earnings expectations upward.

"This agreement signals our growing international footprint, market presence, and commitment to delivering adaptable solutions in collaboration with trusted, in-country partners around the world," said Larry Satterfield, AeroVironment’s Senior Director of Business Development for Asia Pacific.

The JUMP 20 is designed for intelligence, surveillance, and reconnaissance operations with multi-payload capabilities. The system has recently secured contracts with several NATO allies, including Denmark and Italy.

The announcement was made during the Seoul ADEX 2025 Aerospace & Defence Exhibition. The companies did not disclose financial terms or specific timelines for implementation of the partnership.

AeroVironment describes itself as a defense technology company that develops autonomous systems, loitering munitions, counter-UAS technologies, and other defense capabilities across multiple domains. With revenue growth of 44% in the last twelve months and a strong liquidity position, the company shows promising fundamentals. For deeper insights into AVAV’s valuation and growth prospects, InvestingPro offers comprehensive analysis with 15+ additional ProTips and detailed financial metrics in its Pro Research Report.

In other recent news, AeroVironment, Inc. announced that it has secured a contract from the U.S. Army Rapid Capabilities and Critical Technologies Office for its Kinesis tactical software platform. This software will support the Human-Machine Integrated Formations program, which aims to enhance decision-making capabilities and reduce risks for soldiers in armored and infantry units. Additionally, AeroVironment is set to deploy its counter-unmanned aerial system technology at Grand Forks Air Force Base in North Dakota, expanding its collaboration with GrandSKY. The company also revealed the expansion of its Switchblade loitering munition product line with three new variants designed for precision strike capabilities. In leadership developments, AeroVironment appointed Mary Clum as President of its Space, Cyber & Directed Energy business segment, effective October 24, 2025. Clum brings extensive industry experience, having previously worked at Raytheon Company and BlueHalo. These developments reflect AeroVironment’s ongoing efforts to advance its technological capabilities and leadership in the defense sector.

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