Key facts
- Merlin (MRLN) stock surged 32.71% in after-hours trading to $9.49.
- The surge followed the completion of a Critical Design Review (CDR) for its C-130J autonomy program with USSOCOM.
- The CDR completion moves the program from design into aircraft integration and formal testing phases.
- The program falls under an existing IDIQ contract with a total ceiling value exceeding $100 million.
- TD Cowen initiated coverage with a Buy rating and an $11 price target.
Merlin (MRLN) stock experienced a significant surge of 32.71% in after-hours trading, reaching $9.49 on Thursday. This jump followed the company's announcement of completing a Critical Design Review (CDR) for its C-130J autonomy program, developed in collaboration with the U.S. Special Operations Command (USSOCOM). The successful CDR signifies the finalization of the aircraft's design and transitions the program from its design phase into the critical stages of aircraft integration and formal testing, including aircraft-level evaluations. This program operates under an existing IDIQ contract with USSOCOM, which has a total ceiling value surpassing $100 million. Merlin's CEO, Matt George, highlighted that the review validates the company's architecture for scalable autonomy on large aircraft and emphasized its focus on enhancing operational safety for warfighters. The program aims to develop an AI-powered autonomy stack for the C-130J Super Hercules to reduce crew workload. Despite the recent after-hours pop, MRLN's stock has faced challenges over the past year, trading near its 52-week low. Analysts at TD Cowen initiated coverage with a Buy rating and an $11 price target, projecting significant revenue growth for Merlin in fiscal 2026.