Unusual Machines Inc. (AMEX:UMAC) shares are trading higher Tuesday in sympathy with AeroVironment Inc. (NASDAQ:AVAV) after the drone and defense technology company reported a fiscal fourth-quarter double beat.
AeroVironment’s Earnings
AeroVironment reported fourth-quarter adjusted EPS of $1.84, beating the $1.46 consensus estimate, and revenue of $641.6 million, beating the $558.8 million consensus estimate and representing 133% year-over-year growth. Bookings totaled $2.7 billion for the year with a book-to-bill ratio of 1.4, and funded backlog stood at $1.2 billion.
“Fiscal 2026 marked a transformational year for AV, which included the completion of our largest acquisition, meaningful investments toward diversifying our portfolio in critical areas aligned to our customer’s highest priorities, and the strongest financial performance in our history,” said Wahid Nawabi, AeroVironment chairman, president and CEO.
Both AeroVironment and Unusual Machines operate in the drone and defense technology space, making Unusual Machines a natural beneficiary when sentiment around the broader sector improves.
The Index Addition
Separately, Unusual Machines announced it has been added to the Russell 2000 Index as part of the first 2026 Russell indexes reconstitution. The company was previously included in the Russell Microcap Index. The Russell 2000 measures the performance of approximately 2,000 small-cap U.S. companies and is widely used by investment managers and institutional investors as a benchmark for small-cap equity portfolios.
The move reflects the company’s continued expansion as it increases U.S.-based manufacturing capacity and builds a more controlled, compliant drone component supply chain.
“We’ve been focused on building a business that can deliver, expanding production capacity, strengthening the supply chain, and staying ready to meet demand,” said Allan Evans, CEO of Unusual Machines. “Inclusion in the Russell 2000 reflects that progress and increases our visibility with a broader group of institutional investors.”
Unusual Machines Shares Shoot Higher
UMAC Price Action: At the time of publication, Unusual Machines shares are trading 8.42% higher at $20.85, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
