Enovix Corporation (NASDAQ:ENVX) shares are trading higher Wednesday after the company announced a purchase order for 100,000 battery units from a multinational provider of dual-use drone systems.
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Enovix Lands a 100,000-Battery Drone Order, With Follow-On Orders Expected in 2027
The initial order is for 100,000 battery units, with deliveries scheduled in the first half of 2027. The cells will be manufactured at Enovix’s TAA-compliant, military-qualified facility in South Korea. Following a successful initial deployment, the customer is expected to place follow-on orders for the program in the second half of 2027 and beyond. Enovix didn’t disclose the order’s dollar value or the customer’s name.
"Drone makers need high-performance batteries from a qualified, non-Chinese source now, and this order shows Enovix can deliver," said Steve Bakos, Chief Revenue Officer and General Manager of Enovix.
The Order Follows a Q3 Revenue Beat and a $216 Million Pipeline Update
The order moves one opportunity from the roughly $216 million drone, defense and industrial pipeline Enovix reported Monday into backlog. It is one of the fourth-quarter purchase orders referenced in that release. Enovix said purchase orders received in the first part of the fourth quarter already exceed its third-quarter revenue. On Monday, Enovix reported preliminary third-quarter revenue of $11.0 million, up 38% from a year earlier and above its guidance of $9 million to $10 million. It was the sixth straight quarter of year-over-year growth.
Drone and defense customers accounted for about 70% of revenue, and the drone pipeline alone grew 48% to about $150 million. Enovix is investing $19 million to double the capacity of its Korean plant. The company said it expects more pipeline opportunities to convert into purchase orders in the coming quarters.
Enovix has said the pipeline is its estimate of the peak annual production value of identified design opportunities, and that it does not represent contracted or committed revenue.
Enovix Shares Climb
ENVX Price Action: At the time of publication, Enovix shares are trading 5.58% higher at $2.64, according to data from Benzinga Pro.
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