Aevex (AVEX) remains well-positioned despite facing potential concerns regarding 2027 revenue visibility due to declining funded backlog and the full cost of the BlackSea acquisition, RBC Capital Markets said in a Wednesday note.

According to the note, the company is well-positioned within the growing unmanned aerial systems market and its diversification into unmanned surface and underwater vehicle markets remains a net positive.

The strong Q2 revenue growth was driven by accelerated material receipts in support of EUCOM Deep Strike, with more deliveries expected in H2 while the program winds down into 2027, the analysts said.

The $650 million acquisition of BlackSea Technologies, a US defense contractor specializing in unmanned surface and subsea vessels, is expected to generate approximately $150 million in 2026 revenue, with mid-teens margins in line with Aevex, RBC said.

The company raised its midpoint revenue guidance by $100 million and adjusted EBITDA margins by 20 basis points to 15.2%, reflecting stronger demand for non-EUCOM programs, with the backlog supporting approximately 95% of its 2026 revenue guidance, the note added.

RBC kept an outperform rating on Aevex with a price target of $31.

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