Archer Aviation (ACHR) is moving fast ahead of Q2 earnings and its planned commercial flight launch by late 2025 or early 2026. However, in a recent announcement, the company declared it has taken two major steps to grow its defense aircraft program and prepare for broader operations. The company bought a set of patents and hired staff from Overair, which is a spin-off of Karem Aircraft. This move brings in advanced tiltrotor technology know-how, along with people who have worked on both fixed-wing and rotary-wing aircraft. It gives Archer more tools and skills in-house as it develops hybrid and autonomous aircraft for military use.
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In addition, Archer acquired composite manufacturing assets and a 60,000-square-foot facility in Huntington Beach, California, from Mission Critical Composites. This is a defense-focused composite maker. By owning these assets, Archer can build key aircraft parts internally instead of relying on outside suppliers. This is expected to speed up the process of designing, testing, and refining aircraft, which is important for defense programs that require quick delivery and updates.
Archer Strengthens Its Military Position
These moves build on Archer’s December 2024 deal with Anduril Industries to jointly develop hybrid, autonomous vertical takeoff and landing aircraft for defense. That partnership was followed by a $1.3 billion capital raise to fund both defense and commercial plans. Archer says it is seeing rising demand from allied defense programs, and it wants the capacity to respond fast.
The timing also matches a recent $13.4 billion budget request from the Pentagon for autonomous military systems. Having stronger technology and production capability in-house positions Archer to compete for a share of that funding while also advancing its commercial air taxi plans.
While Archer is clearly building its presence in the defense space, its commercial and defense projects are closely linked. The added technology, talent, and manufacturing capacity from these deals are meant to serve both markets. By strengthening its base now, the company is aiming to be ready for large-scale production and operations when its commercial flights launch.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s speculative nature, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a “Moderate Buy” consensus with an average 12-month price target of $11.92. This implies a 22.63% upside from the current price.
